The European Union made big headlines over the past couple of years, primarily because of the banking crisis. Many members of the union had trouble getting their finances in order. Irrespective of the problems in the banking sector, however, many small economies, such as Cyprus, continue to thrive and remain an international business and financial centre.
Here’s why:
Open to the World
Cyprus recently suffered a few setbacks economy-wise, but the country is bouncing back with several improved programs, including relaxed requirements for citizenship in a bid to keep and boost foreign investment.
The country is now offering passports and relaxed citizenship requirements to big foreign investors. Cyprus’s Citizenship by Investment programme was recently revised, making it more investor-friendly. Foreign businesspeople wanting to invest in the island state and acquire citizenship will now only need to put in 3 million euros, down from the previous 10 million euros.
The Best of Three Worlds
This tiny eastern Mediterranean island state is strategically located at the crossroads of three major continents: Asia, Europe, and Africa. This means if you want to expand or start your own business in Cyprus, you get to enjoy an expansive and diverse market.
Because Cyprus is a member of the European Union and the EuroZone, you and your business will also get to enjoy great business relations and transportation connections with the Middle East. All you’ll need to diversify or expand your current business is to invest in the country and become a citizen, via the Citizenship by Investment programme of Cyprus.
Tax Not a Problem
Cyprus has one of the lowest corporate tax rates in the whole EU, at only 12.5%, making the country an ideal location if you want to start a holding company. The government does not require taxes for disposal of securities and capital gains tax to most business transactions. The island state also does not impose withholding taxes on dividend income, interest, or royalty payments effected to non-Cypriot beneficiaries. If you set up an office there, profits from your headquarters abroad are tax exempt.
With all these features and more, the country’s tourism slogan might as well be used for their business campaign: Cyprus in Your Heart.
