Doing Business in: Cyprus – Updated July 2020 – Wealth Management
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Cyprus is strategically located in the Eastern Mediterranean at the crossroads of Europe, Asia and Africa. It is an independent and sovereign republic with a presidential system of government and a written constitution that guarantees the rule of law, political stability, human rights and ownership of private property. Cyprus has been a member of the EU since May 1, 2004 and of the euro area since January 1, 2008. With a view to joining the EU, Cyprus has carried out important structural and economic reforms which have transformed its economic landscape. and created a modern, open and dynamic business environment. Since joining the EU, it has established itself as the natural portal for inbound and outbound investment between the EU and the rest of the world, especially the fast growing economies of Russia, Europe and the East, India and China.
Cyprus is very well placed as an international commercial and financial center. In addition to its strategic geographical location, its cosmopolitan environment and its attractive climate, it offers an excellent commercial infrastructure, a highly qualified English-speaking workforce, an environment conducive to business, in particular in the field of taxation, a quality of life. high and low crime rate. The official languages are Greek and Turkish, but English is the business lingua franca.
The island was invaded in 1974 by the Turkish army and about a third of its territory remains under Turkish occupation. The so-called Turkish Republic of Northern Cyprus is recognized only by Turkey and this chapter only concerns the area controlled by the Republic of Cyprus. As political uncertainty continues to surround the “Cyprus problem” and it is hoped that there will be a satisfactory solution in the near future, daily life and business are not affected by the problem.
The business environment
When Cyprus gained independence from the UK in 1960, it was left in a poor economic state by the former colonial power. Its economy was largely based on agriculture and tourism, and its only resources were its people and location. Cyprus has sought to take advantage of its geographic location and the talents of its people by becoming a maritime and commercial post. It made its breakthrough in the 1990s, after the dissolution of the Soviet Union, when it established itself as the main investment portal from developed Western economies to the newly liberalized economies of Russia and Europe. from the East Since joining the EU, Cyprus has consolidated its position as an international financial center and portal for cross-border investments between all the major economies of the world. It is a low tax jurisdiction with tax and regulatory regimes fully aligned with EU standards, in particular the Code of Conduct for Business Taxation. It has a simple and modern tax system offering predictability in planning and a network of over 60 agreements to avoid double taxation.
Cyprus has a highly skilled workforce, with over 40% of the workforce having completed higher education, and world-class communication and professional services.
Doing Business in: Cyprus
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