To answer this question, we need to do some research and analyze the business market in Cyprus. Cyprus is an island country in the eastern part of the Mediterranean Sea. It is a country with rich history, culture and architecture. It is considered one of the tourist countries and it’s not surprising because one of the main items of national income is tourism. More information about this wonderful country can be found here: https://en.wikipedia.org/wiki/Cyprus. Such conditions promote the development of various forms of business, but it is necessary to take into account the taxability and legal regulations.
How Good is Cyprus for Starting Your Own Business?
Cyprus is one of the most popular places for opening a new business because the tax rate here is lower than in most European countries. It’s also a good option for entrepreneurs who intend to open a business in a place where it’s easy to find investors interested in investing their capital. The climate here is favorable in the literal and figurative sense, as there is a huge tourist area, which offers great opportunities, and the bonus is that it is a place with loyal conditions for doing business. Any company registered in Cyprus is subject to state registration and is obliged to submit financial reports and regular shareholders meetings. Cyprus has a low income tax rate and a flexible legal system make this jurisdiction favorable for starting a new company. Let’s analyze in detail below the advantages of opening a firm in Cyprus:
- The company gets open access to the European market;
- Stable political situation;
- Absence of currency control;
- Low maintenance costs of the company;
- Optimal conditions for holdings (no tax on income from dividends from other countries);
- The requirements to financial statements in accordance with international standards;
- Developed banking system;
- One of the lowest rates in the European Union on profits from the company, which will allow to properly allocate the budget;
- There are no minimum limits for establishing capital.
After the list of advantages of opening your own firm in Cyprus, most questions will fall away, but not all. Therefore, let’s consider in detail the important part when starting a business in this or that country such as taxes.
Ideas for Starting Your Own Business
In fact, there are plenty of ideas for starting your own business. The main thing is to let yourself go in a flight of fancy and continuously look for new ideas, sort and assess your options and future prospects.
Cyprus is a tourist country, so you can take tourists as the target audience.
- It can be a tour agency. This advice is quite simple, but as people say: all ingenious is simple. A huge flow of tourists every year will provide customers interested in excursions, because it is not necessary to conduct them in trivial places for this, you can make your own route, which will increase the level of sales.
- Gambling. Gambling business is always afloat, because there are plenty of fans of casinos, betting, lotteries. The investment is quickly recouped and you can get profit. Gambling is quite a promising business, many people want to spend an hour or two more to play an interesting game, and if you can also earn, the temptation increases at times. Although the market is full of similar proposals, there are enough risk lovers to make this business flourish. The main thing is to acquire a license to assure users and thereby earn credibility among future regular players. For example, as Cyprus casino online. It is a great place where you can spend your leisure time and earn a little money.
- Digital agencies. Now they are beginning to gain popularity and it is not surprising because due to recent events in the world, the digital sphere finds more and more specialists. This startup requires a minimum of investment and provides a good profit. In order to open such a project, you need to find a team or you can even work on your own.
Cyprus can be a great place to start your own business. It opens up a huge opportunity to develop a firm. The favorable conditions, many prospects and other advantages will help in this.
The tax system of Cyprus is quite friendly to foreign entrepreneurs who have decided to start their business here.
Like every country, Cyprus has its own peculiarities which must be studied in advance. Tax residency status is confirmed by a special certificate. This document is necessary to avoid double taxation. Therefore, the director and the management are obliged to be based in Cyprus in order to avoid unnecessary problems. Taxes to be paid are described in the table below:
|Income tax||12.5% is charged regardless of where and how the profit is made.|
|Withholding tax||10% applies only in case of businesses using exclusive rights on the territory of Cyprus.|
|Defence tax||3-30% is provided exclusively for business with a resident of Cyprus.|
|Capital gains tax||20% exemption from taxation on income from the sale of shares abroad.|
|VAT||19% – reduced, 5% – standard|
Popular Forms of Doing Business
The law allows any business to be opened, but it must comply with the business entity (the preferred form for foreign residents is LLC). It provides conditions for residents and non-residents in the process of their registration. The most popular forms of doing business are:
- LLC-Limited Liability Company is a financially transparent organization, which combines partnership.The main characteristic that an LLC shares with a corporation is limited liability.
- Partnership is a partnering business with a general and limited person.
- PLC-Public Limited Company is a public company with free movement of shares, limited liability business system.
Cyprus is good for opening almost any startup due to its advanced tax and economic system, but the most successful will be a business related to tourist entertainment, such as tours, casinos, amusement parks, etc.