Cyprus the New Hybrid Financial Centre
Year 2023 - a short overview
Cyprus is continuing to impress not only international investors but the locals as well.
We are in 2023, several years after the termination of the successful Cyprus Investment Program and the island is still strong, development is "off the roof" in all cities and overseas relocation is at its pick!
What a year for Cyprus, who would have seen this coming!
So what is going on?
In simple terms, it seems that Cyprus has much more to offer than just a passport. Limassol, the beautiful seaside city with more than 120,000 expats, continues to shine, new towers continue to emerge and life is enjoyed at a premium. Amazing hotels and restaurants support the needs of our most VIP individuals and business persons who relocated to the island or are simply on business for a few days.
Similarly, Larnaca is becoming a hub of Israel and Lebanese investors who seek to buy the relatively low priced apartments for yields exceeding 5%. New proposed developments as well as the enhancement of the new Larnaca Marina Port provides an investment safety, as it evidences that the city is growing both via big commercial and residential development projects as well as by expats relocation who enjoy Cyprus tax and relocation benefits!
Paphos was and continues to be the peaceful city of amazing landscapes and wild beauty, combining exotic mountains on the seaside; very attractive for the elderly and persons who want to live a calm lifestyle. The amazing sunsets and pieceful quality of life embraces it even further. Residential development projects in Paphos are also continuous, at a lower pace though than the other cities.
Last but not least, Nicosia seems to be taking its turn, at last. Literally last but not least !!!
New major commercial developments and high towers are under construction, new hotels and road infrastructure ensures that the city as we all knew it will change. Already, several large corporations have relocated their headquarters and their employees giving the city a more dynamic vibe and business look. This is what Nicosia needed, an inflow of young professionals to uplift the spirits and culture!
Why the hype with Cyprus?
Because it works!
Cyprus has the lowest payroll cost in Europe, tremendous tax incentives for employers and relocation packages together with relatively very low (we exclude the city of Limassol) rents. What else could a shareholder need?
What else does a shareholder need?
We assure you that the shareholder of any company would agree with us: They need / want low running costs for their companies.
A low cost base increases dividend payments and this is what Cyprus is aiming at. Cyprus business model aims to attract headquarters from all over the world. This will bring growth to the island (and will push prices up...).
Cyprus also targets the "brains of the world".
The non-dom tax status ensures that shareholders will become Cyprus Tax Residents and pay zero dividend tax on their dividends. This is truly attractive for the "brains of the world" who run multiple businesses and huge dividend bills. Not anymore.
Whether a Company from a 3rd country or an EU company, Cyprus has introduced fast track immigration processes for a smooth transition and legalisation of paperwork.
Read more on Cyprus tax free dividends
Read more on non domiciled tax scheme for individuals (article)
Watch video for non domicled individuals
Read more about Cyprus (article)
Free Medical Care
With the introduction of the NHS (National Health Care System) which enables all employees and Cyprus Company shareholders to free medical care and the known tax benefits (see list below) Cyprus has become a truly attractive destination also for solopreneurs, shareholders of private companies and organisations willing to relocate to an amazing island big enough for a beautiful lifestyle and stay.
Traditional Tax Benefits
- Low Corporation Tax (combined with relaxed income tax office)
- Lowest tax free salary income
- Relaxed attitude towards company expenses
- Tax Free dividend to international tax residents and Cyprus Non Domiciled persons
- 50% waiver of employment cost
- 2.25% tax for intellectual property companies
- Tax incentives for shipping, movie production and holding companies
- Read more tax benefits here
In Conclusion
Cyprus is emerging as a new hybrid financial centre that combines a beautiful lifestyle and tremendous benefits for individuals and corporations relocating to the Republic. Whether an individual receiving dividends or a group of companies relocating to this beautiful island in the Mediterranean, it makes sense!!!
Do not take my word for it. Just observe how this island and each city is being transformed year on year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
