Before talking about the 16 reasons why to invest in Cyprus, let’s talk about this lovely island. Cyprus is the Mediterranean’s third-largest island and the third most populous, with a population of 1.21 million people. The country serves as a crossroads between Europe, Asia, and Africa, making it perfect for residential and corporate relocation. For the past few years, many investors are looking into investing in Cyprus since it growing exceptionally with new opportunities popping up regularly. The central position allows for easy access to all major shipping routes and excellent airline routes to all major airports, including Dubai, London, Moscow, and Athens. Cyprus’ legal and tax systems have since drawn foreign business people, corporate firms, and entrepreneurs.
In this article, we will talk about 16 reasons to invest in Cyprus in 2023. Here are our picks:
- Low Tax Benefits of Cyprus
- Strategic Location for You to Invest in Cyprus
- Cyprus is a Member of the EU
- Standardized British Legal System
- Talented & Highly Educated Workforce
- Pleasant Living and Working Environment
- Family Friendly
- High-Quality Professional Services
- Easy and Flexible Residency Schemes
- Fast Company Formation Procedure and Low Fees
- Business-Friendly Climate & Regulations
- Low-Interest Rates
- Stable & Rapidly Growing Market
- Robust, State-of-the-Art Infrastructure
- A Relaxed and Comfortable Way of Life
- Health and Wellness Sector
1. Low Tax Benefits of Cyprus
One of the most attractive factors for many people to invest in Cyprus, is the low corporate tax rate. The corporate tax rate is 12.5%, one of the lowest in the European Union and fully compliant with EU and OECD regulations. The benefits extend beyond the low tax rate. Dividend revenue proceeds from the sale of shares, bonds, and other financial instruments, foreign exchange (FX) dividends, and earnings from Overseas Permanent Establishments (PEs) will all benefit from tax exemptions.
Related: Cyprus Tax System: A Detailed Guide
2. Strategic Location for You to Invest in Cyprus
Cyprus, is at the crossroads between Europe, the Middle East-Asia, and Africa in the eastern Mediterranean. The geography of this island makes it an ideal geographic position for doing business with three continents. The location is one of the most important reason why you should invest in Cyprus.
3. Cyprus is a Member of the EU
Cyprus is a European Union member that uses the Euro as its currency. The island has access to the single market and the customs union. As a member of the European Union, Cyprus enjoys the same rights as any other EU country.
4. Standardized British Legal System
Cyprus was a British colony until 1960 when it became a republic after gaining independence. Throughout this time of evolution, the British legal system remained intact and is still in use today. This structured legal system may be beneficial for you to invest in Cyprus because it is well-known and observed.
5. Talented & Highly Educated Workforce
Cyprus’ general population is well-educated and has received training at local or foreign institutions worldwide. Cyprus has a highly-skilled population, with 55 percent of the workforce holding a bachelor’s degree or higher.
The majority of people can talk in English, which gives them an advantage along with their high educational level. They are the ideal workforce for your company and your investment projects.
6. Pleasant Living and Working Environment
The average annual temperature in Cyprus ranges from 25°C during the day to 15°C at night. It has 300 days of sunlight a year. It is a beautiful place to live and work—the island’s deep tendency toward art and entertainment adding to this enviable lifestyle.
Cyprus has a much lower cost of living than the other similar countries and at the same time ranks 27th in the Economist Intelligence Unit’s 2019 Quality of Life index.
7. Why Invest in Cyprus: Family Friendly
Cyprus is a peaceful place with many benefits for families who live there or intend to move there. Cyprus is so appealing to families because of its excellent healthcare infrastructure, primary and secondary colleges, hospitals, and other amenities. There will be more relocations due to this family-friendly climate, which will result in more investment opportunities for you in Cyprus.
8. High-Quality Professional Services
Cyprus is home to many well-trained and qualified certified public accountants and registered advocates who are willing to offer their services for your future investment. The majority of speak English, Greek, and Russian. With this easy access to high-quality legal, accounting, strategic consulting, and financial advisory services, you can assure that your investment and business operations are in good hands and done professionally.
9. Easy and Flexible Residency Schemes
By investing in Cyprus, you have an opportunity to obtain a permanent residency which takes only 3-4 months. Cyprus laws do not require foreign investors to reside in Cyprus and to become tax residents. A perfect opportunity to get all the tax benefits for your future investments.
10. Fast Company Formation Procedure and Low Fees
In Cyprus, forming a corporation is a simple process. The Cypriot government is assisting foreign investors in its efforts to attract foreign capital. The registration process takes no more than ten days. Different corporate firms’ fees (including the government fees) vary from €1,000 to €2,500, depending on the firm.
11. Business-Friendly Climate & Regulations
Unlike other EU countries, investors don’t have to fulfill any minimum investment requirements to start in Cyprus. Moreover, European Union citizens don’t need a local Cypriot partner to legalize and incorporate their companies. The government has introduced various relaxations, especially businesses operating in the finance sector, to boost their economy by inviting foreign businesses.
Are you planning a start business that serves consumers or clients across the European Union and the Middle East? Cyprus offers numerous advantages to grow and expand your international enterprise with efficient tax planning and consistent economic stability. Cyprus has a modern, service-based, free-market economy that offers foreign investors and domestic companies numerous schemes and initiatives to grow, expand and maximize their revenues.
Cyprus is opening up to embrace foreign investors and entrepreneurs in numerous sectors. Presently, the Cyprus government is focused on attracting foreign investors and companies to acquire businesses by offering the same legislation and legal resources as local investors and companies. The taxation system is highly efficient and modern, and it provides superior transparency in complete compliance with international and EU regulations.
The liberal market economy is highly beneficial for companies operating in the finance and tourism sectors.
12. Why Invest in Cyprus: Low-Interest Rates
According to the most current interest rate study (September 2020), house loan data have decreased to 2.10 percent.
This is a considerable reduction from its 2012 peak of 5.33 percent and 2009.
Also read: Deloitte’s Cyprus Real Estate Market Report
13. Stable & Rapidly Growing Market
Market growth and stability are powerful forces attracting global investors and expats to invest in Cyprus. Given the astounding market growth and long-term stability, the real estate sector is one of Cyprus’s most preferable investment vehicles. Suppose you want to preserve your life savings in a home and spend your retirement in a peaceful, crime-free community. In that case, Cyprus is brimming with attractive housing investments, whether you seek a primary residence, holiday home, or a profitable multi-family rental portfolio.
Cyprus has grown tremendously recently, and the housing market is ripe with offerings that promise higher ROIs. The best part about investing in Cyprus’ real estate sector is the incredible property diversity that makes the industry attractive for buyers and investors with different price ranges and scales. You can explore the Cypriot real estate sector finding lavish high-rise apartments and luxury villas to historic homes, commercial properties, and more.
Interestingly, Cyprus attracts scores of investors from the European Union because market rates and prices in Cyprus are much more appealing and affordable than in most European markets.
14. Robust, State-of-the-Art Infrastructure
Businesses, investors, and corporations looking to relocate to or invest in Cyprus are impressed by the island’s robust, state-of-the-art infrastructure. All modern-day enterprises, trade-based businesses, and commercial entities rely on a solid infrastructure and undisturbed connectivity. Cyprus’s strategic location allows the local corporate ecosystem and real estate sector to grow exponentially in the region.
Cyprus’ innovative infrastructure is a decisive competitive advantage that attracts direct investment for investors and corporations worldwide. The island’s two multipurpose deep-sea ports have allowed the cities of Larnaca and Limassol to develop into metropolitan power centers of business and commercial activity. Companies and investors heavily reliant on affordable logistics solutions will find numerous reliable and fully licensed freight and cargo partners and 3PL service providers to add value to their business with attractive cost advantages.
It’s pertinent to note that Limassol is home to a world-class port that is a prominent hub for international cruise liners and ships. The international airports in Larnaca and Paphos connect Cyprus to all popular transit hubs worldwide.
15. A Relaxed and Comfortable Way of Life
Cyprus is a country where you can feel very comfortable in terms of the size of the cities and the evenly distributed population. Thanks to the ease of transportation and immediate proximity to the beach, you’ll feel like you’re on vacation all the time. Cyprus is a fantastic choice because of its natural beauty for relaxation and enjoyment, thanks to its vibrant entertainment and social scene. It is simple to meet and connect with people from other cultures in this country because of tourism’s contribution to the economy. Can you picture working all day and then taking a short trip to the beach to unwind with a drink? That sounds amazing! You can be sure it will be a life-improving event. On the weekends, you can easily use your automobile to get new experiences by visiting various cities and beaches. Invest in Cyprus to have a comfortable and fulfilling experience of Europe.
16. Health and Wellness Sector
Cyprus has an excellent medical system renowned for its cutting-edge medical facilities and high treatment standards. The nation provides various healthcare services, including advanced hospitals, specialist clinics, and qualified medical staff. Cyprus ranks among the top countries for healthcare quality and patient satisfaction due to its dedication to offering top-notch care. The island’s developed infrastructure, state-of-the-art equipment, and adherence to international standards support its healthcare system. Cyprus has also adopted a holistic strategy for wellness, emphasizing the promotion of preventative care, healthy lifestyles, and alternative treatments. From health retreats to spa resorts, Cyprus offers wellness services to those looking for rest, renewal, and general well-being.
The island’s favorable climate and serene environment enhance the healing and therapeutic experiences, creating an ideal destination for those seeking top-notch healthcare and rejuvenating wellness services in a tranquil setting.
17. Real Estate Development
Significant real estate growth has been seen in Cyprus, particularly on its coastal regions and large cities. Modern residential buildings and commercial buildings are regularly springing up in major cities like Limassol and Nicosia to meet the rising demand from domestic and foreign investors. These complexes frequently have cutting-edge amenities, which makes them desirable choices for individuals looking for luxury homes. In addition to enhancing inhabitants’ quality of life, this trend toward modernization and urbanization offers chances for investors looking for rental income and long-term capital growth.
Along with coastal districts, ancient city centers like Nicosia’s Old Town have seen increased redevelopment, providing special prospects for investors drawn to heritage sites and the preservation of historic structures. Whether they prefer the frantic pace of the city or the tranquility of the coast, investors can select from a variety of possibilities thanks to the real estate market’s diversification.
Cyprus is a great place to start investing if you’re looking for a unique spot. The advantages mentioned above aren’t the only ones. The above are only a few of the highlights of what we think makes Cyprus so appealing for investment.
Related: Complete Guide on Cyprus Investment