Cyprus foreign Investments incentives
Cyprus Investment Incentives (2025)
Cyprus continues to actively encourage foreign investment, offering a range of incentives and advantages. Here's an updated overview:
Key Advantages for Foreign Investors in Cyprus:
- Strategic Location: Cyprus's location at the crossroads of Europe, Asia, and Africa provides access to multiple markets.
- Developed Infrastructure: Cyprus boasts modern infrastructure, including advanced telecommunications, transportation, and logistics.
- Skilled Workforce: Cyprus has a highly educated and skilled workforce, with a strong command of English.
- EU Membership: Cyprus's membership in the European Union provides access to the single market and EU funding opportunities.
- Legal Framework: Cyprus has a robust legal framework based on English common law.
- Quality of Life: Cyprus offers a high quality of life, with a pleasant climate and a safe environment.
- Competitive Tax Regime: Cyprus maintains a competitive tax regime with various incentives.
Investment Policies:
- Open Investment Environment: Cyprus generally welcomes foreign investment across various sectors.
- Equal Treatment: Foreign and domestic investors are treated equally.
- Real Estate Investment: Foreigners can purchase real estate in Cyprus, but there may be restrictions on the size of land purchases.
Current regulations regarding land size and permits should be confirmed with the relevant authorities.
- Currency: Investments in real estate are typically made in foreign currency.
Cyprus Tax Incentives:
- Corporate Tax Rate: Cyprus has a competitive corporate income tax rate. The 10% rate you mentioned should be verified with the tax authorities, as it might have changed.
- Dividend Exemption: Dividends received by Cypriot companies from other companies are generally exempt from corporate income tax.
- Capital Gains Exemption: Gains from the disposal of securities are generally exempt from capital gains tax.
- Non-Dom Regime: The non-domicile tax regime offers significant tax advantages to individuals who relocate to Cyprus.
- Expat Incentives: Cyprus offers tax incentives for foreign employees taking up employment in Cyprus.
- Shipping Industry: Cyprus has a favorable tax regime for shipping companies, including exemptions on profits and dividends.
The specific tax benefits for the shipping industry should be verified with the tax authorities.
- Free Trade Zone: The Larnaca Free Zone offers exemptions from customs duties and other benefits.
Company Formation Costs in Cyprus:
- Company Formation and Registration: The costs of company formation and registration can vary depending on the service provider.
Obtain current quotes from service providers.
- Registered Office Address: The cost of a registered office address can vary.
- Company Secretary: The cost of a company secretary can vary.
- Local Director: The cost of a local director can vary.
- Mailbox: The cost of a mailbox can vary.
Key Updates and Considerations:
- Regulations are Subject to Change: Investment policies and tax regulations are subject to change, so it's essential to stay updated.
- Due Diligence: Thorough due diligence is crucial before making any investment in Cyprus.
- Professional Advice: It is highly recommended to seek professional advice from lawyers, accountants, and consultants specializing in Cypriot investment and tax law.
Key Advantages for Foreign Investors in Cyprus:
- Strategic Location: Cyprus's location at the crossroads of Europe, Asia, and Africa provides access to multiple markets.
- Developed Infrastructure: Cyprus boasts modern infrastructure, including advanced telecommunications, transportation, and logistics.
- Skilled Workforce: Cyprus has a highly educated and skilled workforce, with a strong command of English.
- EU Membership: Cyprus's membership in the European Union provides access to the single market and EU funding opportunities.
- Legal Framework: Cyprus has a robust legal framework based on English common law.
- Quality of Life: Cyprus offers a high quality of life, with a pleasant climate and a safe environment.
- Competitive Tax Regime: Cyprus maintains a competitive tax regime with various incentives.
Investment Policies:
- Open Investment Environment: Cyprus generally welcomes foreign investment across various sectors.
- Equal Treatment: Foreign and domestic investors are treated equally.
- Real Estate Investment: Foreigners can purchase real estate in Cyprus, but there may be restrictions on the size of land purchases.
Current regulations regarding land size and permits should be confirmed with the relevant authorities. - Currency: Investments in real estate are typically made in foreign currency.
Cyprus Tax Incentives:
- Corporate Tax Rate: Cyprus has a competitive corporate income tax rate. The 10% rate you mentioned should be verified with the tax authorities, as it might have changed.
- Dividend Exemption: Dividends received by Cypriot companies from other companies are generally exempt from corporate income tax.
- Capital Gains Exemption: Gains from the disposal of securities are generally exempt from capital gains tax.
- Non-Dom Regime: The non-domicile tax regime offers significant tax advantages to individuals who relocate to Cyprus.
- Expat Incentives: Cyprus offers tax incentives for foreign employees taking up employment in Cyprus.
- Shipping Industry: Cyprus has a favorable tax regime for shipping companies, including exemptions on profits and dividends.
The specific tax benefits for the shipping industry should be verified with the tax authorities. - Free Trade Zone: The Larnaca Free Zone offers exemptions from customs duties and other benefits.
Company Formation Costs in Cyprus:
- Company Formation and Registration: The costs of company formation and registration can vary depending on the service provider.
Obtain current quotes from service providers. - Registered Office Address: The cost of a registered office address can vary.
- Company Secretary: The cost of a company secretary can vary.
- Local Director: The cost of a local director can vary.
- Mailbox: The cost of a mailbox can vary.
Key Updates and Considerations:
- Regulations are Subject to Change: Investment policies and tax regulations are subject to change, so it's essential to stay updated.
- Due Diligence: Thorough due diligence is crucial before making any investment in Cyprus.
- Professional Advice: It is highly recommended to seek professional advice from lawyers, accountants, and consultants specializing in Cypriot investment and tax law.