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Cyprus – An Appealing Option After Brexit

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Cyprus – An Appealing Option After Brexit

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As the dust begins to settle from the recent verdict of the UK people to exit the EU, business decision-makers and individuals seem to be left with more questions than answers. Depending on the specific circumstances of each business/individual, the extent of the impact from the Brexit will vary. Subsequent to the evaluation of the impact, each person will have to consider its options and take immediate and possibly tough decisions.

Thanks to a wealth of fiscal and other advantages, Cyprus forms a very appealing proposition for those who will decide to relocate from the UK. Some of the most important facts that a person must be aware about Cyprus are summarised below:

 

Establishing a commercial Company

Cyprus forms a very advantageous location for establishing a commercial Company for a plethora of reasons, the most important of which are its membership in the European Union, its strategic geographical position, the excellent telecommunications and other infrastructure, the country’s well-educated, skilled and multilingual workforce, the high quality of professional advisors and the high quality of life.

 

Incentives for physical establishment/relocation

Cyprus offers incentives for promoting the physical establishment/relocation of individuals, foreign companies and groups. Such schemes include the concept of ‘domiciled’ persons (individuals who are tax residents of Cyprus but are not considered to be “domiciled” in Cyprus are exempt from payment of Special Contribution for Defense on dividends, interest and rental income), tax exemptions on income of a non-resident moving to Cyprus for employment and special tax rate for pension income for expats.

Tax system

The tax legislation of Cyprus is in full conformity with both EU Laws and Directives and with the Organisation for Economic Cooperation and Development’s guidelines. Additionally, Cyprus has a wide network of Double Tax Treaties (DTTs) covering an array of countries around the world, including major developed and developing nations. Some of the most important tax advantages of Cyprus are:

· one of the lowest rates of Corporation Tax in the EU at 12.5%;

· exemption from Corporation Tax and in most cases also from Special Contribution for

Defense on dividend received;

· exemption from tax of profit on disposal of securities;

· no WHT on interest, royalties (for rights used outside Cyprus) and dividends paid to

non-residents of Cyprus;

· access to EU directives;

· no Controlled Foreign Corporation legislation;

· no Thin Capitalization requirements;

· no Inheritance Tax;

· no Net Wealth Tax;

Legal system

Cyprus Law is a mixture of legislative statutes and case law. Cyprus is a common law jurisdiction and as such applies English Common Law principles where there is no Cyprus legislation in force. These principles apply with regard to both substantive and procedural matters.


Strong ties between Cyprus and the UK
Cyprus has a strong bilateral relationship with the UK, reflecting the two countries’ long historical ties, which date back to the 19th century. Furthermore, English is widely spoken in Cyprus and is the language mostly used in business.

Today, the two countries maintain close links in the political, economic and cultural fields . These are enhanced further through the relationship between Cyprus and the UK, as members of the Commonwealth.

The two countries maintain strong person-to-person contacts. It is estimated that there are around 270,000 Cypriots living in the UK and that approximately 12,000 Cypriot students are currently enrolled in British universities. At the same time, there are between 60,000 and 70,000 Britons living in Cyprus. Also more than a million British tourists visit the island every year, representing more than half of the overall number of tourist arrivals to Cyprus.

In addition, the UK has been a close trading partner to Cyprus both in goods and in services. The UK is the most important partner in services for Cyprus and the third most significant partner in trading of goods.

Related material

· Tax Department issues Circular on Non-Domicile regime

· Cyprus: Recently introduced “Non-Dom” regime already becomes a favourite!

· Incentives for Investing – Relocating in Cyprus

· The Reformed International Business World – Does Cyprus have a place in it?

· Cyprus Citizenship Scheme – Important Points (Frequently Asked Questions)


ABOUT US

Fiducenter is an independent provider of professional services, with more than 35 years of successful presence. Fiducenter (Cyprus) Ltd was established officially on the 3rd of January 2005 and, taking advantage of the flourishing international business sector in Cyprus, it has since grown impressively. Exceeding our clients’ expectations is the essence of our culture, while also ensuring not to compromise our own values and principles. We are licensed and regulated as applicable; aiming to surpass regulatory requirements, believing that a stronger control environment can streamline our organisation and ensure the highest quality of service is achieved. Our clients are longstanding and loyal, and have grown with us. We hope that we can be of service to you and your business. Read More...

You can find more background information about our company, the services we offer as well as the whole range of our publications on our website. For timely and up to date news and articles related to the international business sector in Cyprus you can follow us on Twitter and on LinkedIn.

 

Fiducenter (Cyprus) Ltd

T: +357 25 50 40 00 | F: +357 25 50 41 00

W: www.fiducenter.com.cy | E: fiducenter@fiducenter.com.cy

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