One of the most attractive places to invest, relocate, set up or transfer a business
Geographical Location
Located in the Eastern Mediterranean, at the crossroads of 3 continents
Quality of Life
340 days of sunshine
a year, high standard of living
Business-Friendly
Environment
Attractive tax and legal regimes and business incentives
Support
Well-educated and experienced professionals, top quality infrastructure
As part of its effort to attract foreign high net worth individuals to invest, international groups to set-up presence and qualified individuals to relocate and work in the country, Cyprus offers some very appealing incentives. You can find below a very brief overview of these incentives, which together with some other advantages that Cyprus has to offer, such as its geographical location, its sunny weather, the business-friendly time zone, low crime and pollution and the top quality of facilities and services, have transformed Cyprus in to one of the most attractive places to invest, set up or transfer a business, relocate to work and live in.
We stress that what we are outlining here are just the highlights of the different provisions. For more information on any of the incentives mentioned below you can contact us by completing the form at the top of this page.
Cyprus offers two schemes for attracting investment by third-country nationals which, since their implementation, have created increased interest from investors from all over the world, who see Cyprus as the gateway (being the far eastern border of the EU) to the great freedoms granted by the EU to its Member States and their citizens, especially the freedom to conduct business in the Union.
This special class of permit relieves its holders from time consuming procedures associated with other types of permits, such as consular inspections, renewal, etc. The main criterion in order to qualify for the scheme is the acquisition of up to two properties in Cyprus with a total value of not less than €300,000.
VAT
The VAT provisions related to the application of the reduced rate of 5% (as compared with the standard VAT rate of 19%) on the construction or acquisition of residential property in Cyprus which is to be used as the primary and permanent residence were extended some time ago so as to include acquisitions by individuals, from all over the world, who do not ordinarily reside in Cyprus but acquire property to be used as their residence while they are in Cyprus.
Land Registry Transfer Fees
The Land Registry (Duties and Fees) Law provides for full exemption from transfer fees for all transfers of real estate property for which VAT was payable on the transaction and 50% exemption from transfer fees for all other transfers.
Immovable Property Tax
As from 2017, Immovable Property Tax (IPT) has been abolished.
We are at your disposal to discuss any specific cases or issues as well as for any further information or clarification you may require on the
on any matter or case in relation to Cyprus.
Please feel free to contact us by filling in the contact form.
With regards to incentives to relocate to the country, Cyprus offers schemes for different purposes, from promoting the physical establishment/relocation of foreign companies and groups to motivating personnel (especially key persons) to move to Cyprus, to giving yet one more motive for non-residents to retire in Cyprus.
The concept of ”domiciled” persons for what concerns Special Contribution for Defense was introduced as from July 2015. Individuals who are tax residents of Cyprus but are not considered to be “domiciled” in Cyprus are exempt from payment of Special Contribution for Defense on dividends, interest and rental income.
This provision, which was introduced in July 2017, provides an incentive to individuals who are not tax residents in any other country for any tax year to transfer their tax residence to Cyprus, as long as they satisfy certain criteria.
This measure was implemented to attract foreign companies or groups to establish themselves or, as is usually the case, transfer their base and substance of operations in Cyprus by offering a 50% exemption on personal income tax. The exemption applies to employment income of a non-resident person taking up residence in Cyprus to work for an employer in the country. This exemption applies for a period of ten years starting from the first year of employment provided that the employment income of the employee exceeds €55,000 per annum.
This exemption has been in effect for many years and it has recently been extended until 2025 . The exemption relates to the lower of 20% of employment income or €8,550 and applies for five years starting from the 1st of January of the year following the year of employment.
Foreign pensions have a very favourable status in Cyprus, involving a flat annual income tax charge of 5% for amounts exceeding €3,420 per annum. What is more, the tax payer has the right to choose to be taxed either under the special mode of taxation as stated above or at normal rates. The latter option might be more beneficial, depending on the circumstances, considering that the first €19,500 of personal income per annum is tax free.
We are here to help. If any of the above programs and incentives are of interest to you or if you have any query about setting up in and/or relocating to Cyprus, we would be more than glad to discuss it with you and work out the best possible solution.At Seamark we have been providing our clients with international business solutions and professional services since 2004. We provide a comprehensive range of international business services related to Cyprus, mainly focused on setting up presence in Cyprus, relocating to and/or investing in the country, hiring local personnel, applying for citizenship/permanent residency/work permits, family office services and much more.Please feel free to contact us by filling in the form above.
Tel: +357 25 50 40 00
Note: The information provided above and throughout our website and publications does not constitute legal, tax or investment advice and no responsibility is accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it.
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