Our team has on several occasions advised and assisted Israeli Companies to set up in Cyprus, from choosing the right business vehicle, to ensuring compliance with tax and ongoing compliance obligations and relocating employees and key team members.
Doing Business in Cyprus & Beyond
One of the main reasons that Israeli Businesses are choosing Cyprus as a headquartering base is its favorable tax environment. Cyprus has a low corporate tax rate of just 12.5%, which is significantly lower than many other European countries. This makes Cyprus an attractive location for businesses.
Another factor that is attracting Israeli businesses to Cyprus is its business-friendly environment. The country has a well-established legal and financial system based on English common law and English is widely spoken in the country.
The EU & Eurozone
Additionally, Cyprus is a member of the European Union, providing Israeli businesses with access to a large market of potential customers and investors. The island nation’s strategic location in the Eastern Mediterranean also provides a gateway to other markets in the Middle East and North Africa, which can be advantageous for companies looking to expand their reach.
Relocation of Key Employees
In addition to being a headquartering base, many Israeli businesses are also choosing to relocate employees to Cyprus. The country’s favorable tax and business environment, as well as its high quality of life, make it an attractive location for Israeli entrepreneurs. Cyprus offers a favorable immigration policy, making it easy for Israeli employees to obtain work and residency permits.
The Cyprus government offers several incentives to encourage foreign businesses and entrepreneurs to establish a presence in the country. One such incentive is the fast-track process for obtaining work permits for non-European Union nationals. This process is designed to expedite the application process for work permits and can take as little as 5-10 days to complete.
Moreover, Cyprus is a safe and stable country, with a high standard of living and an excellent education system. This makes it an attractive location for Israeli employees looking to relocate with their families, providing a good quality of life for everyone.
There is also a shared cultural and linguistic heritage between Israel and Cyprus. Cyprus was a British colony until 1960, and English is widely spoken on the island. This makes it easy for Israeli companies to communicate and do business with their Cypriot counterparts.
Overall, Israeli businesses are choosing Cyprus as a headquartering base and a country in which to relocate employees due to its favorable tax environment, business-friendly atmosphere, strategic location, thriving startup ecosystem, high quality of life, and favorable immigration policy. As Israeli businesses continue to expand their operations overseas, Cyprus is proving to be an increasingly attractive destination for companies looking to grow and succeed in Europe and beyond.
