It’s no surprise that Cyprus is an emerging start-up ecosystem. The low corporate tax rate (12.5%), sunny weather (over 300 days a year) and the fact that Cyprus is an EU Member State are some of the benefits aspiring entrepreneurs can benefit from when starting up their business on the Mediterranean island. In this article, we examine the major factors that make Cyprus an emerging start-up ecosystem.
Low Tax Rate
Businesses in Cyprus pay the government only 12.5% of their profits, one of the lowest corporate tax rates in Europe. Corporations are also exempt from paying taxes on the sale of securities, dividends, and, in some cases, capital gains. Cyprus has a territorial tax system, which means that only revenue generated locally is taxed. As a result of double taxation treaties, establishing a business in Cyprus can result in significant tax savings.
Locals Speak English Fluently
Today, English is widely spoken in Cyprus, and it is taught in all of the island’s schools. As the economy of Cyprus relies greatly on tourism, the majority of Cypriots are able to communicate in English fluently. This is a great benefit for anyone planning to start up their business in Cyprus since they will easily communicate in English without necessarily needing to learn Greek, the official language of the island. This is one of the unique perks of Cyprus as there aren’t many countries in Europe where you can move to without needing to speak the local language.
Cyprus is an EU Member State
In May 2004, Cyprus joined the EU. The benefits of being in an EU Member State are numerous, both as a citizen and as an entrepreneur. Starting up a business in a country which is an EU Member State means being part of a stable, democratic, secure and prosperous community. In addition, labour, goods, services and capital can move freely without major restrictions, meaning that as an entrepreneur you have immediate access to 450 million consumers.
The Weather and Culture
Cypriots articulate the combination of history, religion, culture, values, language and nationalism as “ta ethima mas” (our culture and traditions). People take deep pride in their hospitality, generosity and honesty, as these are qualities thought to determine their integrity. Honour is derived from doing things for others that are beyond one’s own self-interest, whether it be for their family, friends or country. It’s an ideal environment to set up a business and grow it. As an entrepreneur in Cyprus, you’ll feel welcome by the locals and be able to build your network with local business people.
Finally, with an average of 300-340 sunny days per year, the weather is another factor that attracts many entrepreneurs to Cyprus. The climate on the island is subtropical Mediterranean, with hot summers and mild, rainy winters.
Should you wish to find out more, do not hesitate to contact our team at info@paraschou.com.cy.
