If you are thinking about the benefits of relocating your business to Larnaca, Cyprus, then you have landed on the right page. As you may have heard, many companies are relocating to Larnaca for various beneficial reasons, professionally and personally.
This article will go through the benefits of relocating your business to Larnaca, Cyprus, and why you should consider them for your business.
Lowest Corporate Income Taxations in the EU: 12.5%
One of the most attractive reasons why many businesses are relocating to Larnaca is the low corporate tax. The corporate tax rate is 12.5%; this is one of the lowest corporate tax rates in the European Union, fully compliant with EU and OECD regulations.
The benefits are not only limited to the low taxation rate. Other various tax exemptions are attractive to businesses. These exemptions are:
- Dividend income
- Disposal of shares, bonds, and other financial instruments profits.
- Foreign exchange (FX) gains (Do not apply to trading in FX)
- Overseas Permanent Establishments (PEs) profits.
Other tax benefits of relocating your business to Larnaca, Cyprus, are the absence of withholding tax and succession taxes.
Low Cost of Doing Business without Lowering the Quality
Compared to the other Cyprus cities like Nicosia and Limassol, Larnaca has a lower cost of doing business and living. Compared to the other cities within the EU, Larnaca can be 30-40% less costly to run a high-quality business operation and live a high-quality life.
By relocating your business to Larnaca, Cyprus, you can reduce your business costs without sacrificing quality. Paired with the low taxes of Cyprus, this can double your business revenue and profits.
Also see: [PDF] Cyprus – Doing Business
Benefits of Relocating Your Business to Larnaca, Cyprus: Strategic Location
Larnaca, Cyprus, is located in the eastern Mediterranean at the crossroads of Europe, the Middle East-Asia, and Africa. This island’s geography makes it an excellent strategic location to do business close to 3 different continents.
Besides, Cyprus is ranked 1st safest country with a population of less than 5 million and 5th worldwide. Cyprus is also ranked 5th for the best relocation destinations in the EU.
Cyprus is an EU State
As mentioned before, Cyprus is part of the European Union, with their currency being the Euros. The island has direct access to the single market and customs union. As part of the EU, Larnaca, Cyprus has the same rights as any other mainland European country.
Population culture in Larnaca, Cyprus, is westernized and ideal for relocation. Living in Larnaca does not feel foreign, so, therefore, it is not complicated to adjust.
English is Widely Spoken in Larnaca
The official language of southern Cyprus is Greek, and English is taught in school. Almost everyone in Larnaca, Cyprus, can talk English. This can be beneficial for your business since there are no language barriers within your team and operations.
By exploring Larnaca, you will notice that all the road signs, shops, menus, etc., are also written in English. This is just another benefit of relocating your business to Larnaca, Cyprus since it makes the relocation process even more accessible.
Legal system based on the English Common Law system
Cyprus was a British colony down the history line until 1960 when the gain its independence and republic. During this transition, the English legal system was not changed and still stands as of today. This standardized legal system can be beneficial for your business here in Larnaca, Cyprus since it is widely known and practiced.
Accessible to Use Special Purpose Vehicle (SPV) Companies
Special Purpose Vehicles, subsidiaries of companies set up to protect the parent companies from financial risk, have gained traction over the last couple of decades. Setting up SPVs is relatively easy in Cyprus. The set-up procedure that investors should follow is similar to setting up a limited liability company in Cyprus. Following documents are required to initiate the process of setting up an SPV in Cyprus.
- Copies of the passports of each investor
- Approval of the chosen company name by the Trade Register
- The memorandum of association and articles of association
- Information about company directors and secretaries
- Bank statement indicating the deposit of the share capital of the business
- The tenancy agreement or the property title is showing the legal address of the company in Cyprus.
Related: Setting up a SPV Company in Cyprus
One of Best Weather Climates in Europe
Within the Mediterranean area, Larnaca, Cyprus, has one of the most comfortable climates. On average, the annual temperature is between 25°C in the daytime and 15°C in the night.
This can be one of the benefits of relocating your business to Larnaca, Cyprus, since you will be able to run your operation in a comfortable climate. You can also enjoy your days off to regenerate your energy being under sunny weather.
Related: Climate and Seasons of Cyprus
Benefits of Relocating Your Business to Larnaca, Cyprus: Talented Workforce
One of the benefits of relocating your business to Larnaca, Cyprus is the talented workforce that Larnaca, Cyprus can offer to your business. The general population in Larnaca is well-educated and trained in local or international universities all around the globe.
As mentioned before, most people can talk English, and paired with their high-educational status. They make the perfect workforce for your business.
Cyprus is home to the European Union’s youngest population of qualified and experienced professionals. Statistics reveal that over 55% of the Cypriot workforce is well-qualified with a tertiary degree. The majority of the businesses operating in Larnaca and other Cypriot islands use English as their functional language. Therefore, over 70% of the workforce speaks English fluently.
What’s more, businesses operating in Larnaca enjoy the ease of access to global talent pools. The booming internet infrastructure allows corporations to benefit from remote talent acquisition and project management. Companies based in Cyprus enjoy easy visa-free access to European labor markets.
Booming Corporate Ecosystems with Steady Economic Growth
Larnaca is ripe with facilitative and innovation-focused ecosystems that allow foreign companies and startups to enjoy the ease of operations and expansion. Suppose your company wants to outsource its accounting, legal, or marketing functions to a local specialty firm. In that case, Larnaca is home to Cyprus’ renowned audit firms, law firms, marketing agencies, and a vast host of specialty enterprises.
The city is home to a well-balanced and rapidly developing corporate ecosystem to provide businesses access to external support and specialized skills. External advice, consultation, outsourcing, and legal aid are critical factors to success in Cyprus or any foreign country. Larnaca provides businesses access to a wide array of companies and corporate networking systems to prevent loss of capital, legal complication, and asset acquisition delays.
This booming corporate ecosystem will help you connect with like-minded realtors, legal experts, logistical partners, EU market experts, and skilled talent to enrich your company with specialized skills. Cyprus is home to over 700 registered accounting firms, and many of the global firms are located in Larnaca’s corporate districts. Moreover, the country hosts over 160 law firms and over 2700 registered lawyers. One of th other great reasons to relocating your business to Larnaca, Cyprus
Ease of Starting & Running a Business
The Cypriot government’s willingness and readiness to adapt to and embrace the changing needs of foreign investors have allowed Larnaca and Nicosia to emerge as one of the most rapidly growing corporate ecosystems in the EU. The corporate regulations and legal stipulations of starting and running a foreign business in Cyprus facilitate investors and business owners.
The legal system offers robust protection to safeguard intellectual property (IP) and secure property investments. These strong legal protective measures inspire trust in investors worldwide looking to capture multiple European Union markets from a geostrategic vantage point. Cyprus provides the ideal strategic vantage point by offering streamlined, fast, and straightforward processes for establishing or relocating a business.
Foreign businesses rely on trusted financial, legal, and logistical partners to enjoy the ease of relocating and running a business without entangling themselves in legal and financial complications.
Family-Friendly Communities & Modern Amenities
Suppose you’re planning to relocate your business and family to Cyprus. In that case, Larnaca is one of the best cities to relocate with family and children. The city is brimming with picturesque beaches, recreational facilities, and one of the best private education sectors in Europe. Families can explore a wide array of private sector schools that teach English-based programs.
The real estate market is brimming with affordable residential properties, ranging from high-rise luxury apartments to waterfront villas and family homes. Larnaca combines the scenic beauty of Cyprus with the modern amenities required to support a contemporary lifestyle. In 2015, Cyprus was voted amongst the top 5 safest countries by Value Penguin. Whether you want to start a family or take early retirement, Larnaca offers much. This add to the benefits of relocating your business to Larnaca, Cyprus.
Families residing in Larnaca enjoy a fulfilling lifestyle close to nature and the world’s leading innovations in healthcare, education, business, and entertainment.
Extra Benefit: Non-Dom Taxation Policy
Cyprus’s taxation policy permits foreigners to become tax residents in as little as 60 days.
This concept enables digital nomads in Cyprus to take advantage of the most favorable taxation regime in the EU.
Here are some of the attractive taxation schemes in Cyprus:
- The lowest corporate income tax rate of 12.5% in Europe
- Tax exemptions for Dividend income, Interest income, Profits from the sales of securities, and more
- A tax-free threshold of €19,500 for income taxes
- 20% income tax for incomes within €19,501 — €28,000
- 25% income tax for incomes within €28,001 — €36,300
- 30% income tax for incomes within €36,301 — €60,000
- 35% income tax for incomes within €60,001 and more
Read more about Cyprus Taxation System
Larnaca, Cyprus, can well standout among your locational options to relocate your business to. The benefits mentioned above are not the only ones. The above points are just the highlights of what we believe can make Larnaca, Cyprus, so attractive to do business in.