Incentives to Invest, Set-up business in or Relocate to Cyprus

Establishment or transfer of headquarters or a regional office

  • Business friendly tax and legal regimes
  • Top quality of professional and supporting services
  • Well educated and experienced personnel
  • EU Membership and Euro currency
  • Very competitive business rates
  • Incentives for (especially key) personnel to relocate to Cyprus
  • Convenient geographical position and time zone
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Want to Invest in or Relocate to Cyprus?

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.




Incentives to Invest in Cyprus

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.

1. Permanent Residence Permit Programme

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.

2. Cyprus Investment Programme (previously Citizenship by Investment Scheme)

This programme involves the provision of citizenship to individuals upon meeting certain criteria, either personally, or through participation as a shareholder or senior executive in a company/companies. The scheme is particularly attractive to investors who view 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.

3. Other Incentives

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.

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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.

Incentives to Relocate to Cyprus

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.


 

1. “Domicile” concept for Special Contribution for Defense purposes

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.

 

2. 60-days tax residency rule

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.

 

3A. Tax exemption on income of a non-resident moving to Cyprus for employment

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 €100,000 per annum.

 

3B. Tax exemption on income of a non-resident moving to Cyprus for employment

This exemption has been in effect for many years and it has been mainly targeting Cypriots studying abroad to return to Cyprus for employment. 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. The exemption can only be claimed until 2020.

 

4. Special tax rate for pension income for expats

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.


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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