August 31, 2011, 6:36 pm
Many elements contribute to making Cyprus an attractive option for foreign investments. Doing business on this island is facilitated by location, infrastructure, work force and tax system. Besides, the Central Bank of Cyprus provides sufficient data to consider that Cyprus has a high potential in terms of foreign investments. Last but not least, Cyprus ranks as the 28th highest in the world in terms of living standards.
Cyprus has a modern, serviced-based economy, with a successful economic performance. Stability is also reflected in Gross Domestic Product growth, unemployment rate or inflation. Besides, the Cypriot legal system also provides stability, together with professional accounting services offered by numerous consultants on the island for resident or non-resident investors. The confortable standard of living, the low stress level and the pleasant environment also contribute to the country’s stability and overall performance.
Location and infrastructure
Cyprus is located at the crossroads of three continents, facilitating international trades with many countries in Europe, Africa and Asia and offering the opportunity to easily reach new markets. With shipping accounting to 4% of the GDP of Cyprus, the islands’ infrastructure is mostly ensured by sea. Actually, Cyprus is one of the most famous and active international shipping centres, ranking among the ten leading maritime nations in the world. Airports and roads are also well-developed.
Cyprus benefits from a highly qualified workforce, formed in the educational system of the state. The focus on this aspect is also reflected by the Cypriot government investments in education. In addition to that, employees in Cyprus speak many languages, from Greek to English and Turkish.
Cyprus has one of the lowest corporate tax rates of 10%. There are also a number of incentives that attract foreign investors, such as the exemption from tax on dividend income and on profits from overseas permanent establishments. No withholding tax is levied on dividend income, interest and royalties. Moreover, Cyprus has signed Double Tax agreements with over 43 countries, making sure that the same income is not taxed twice.Tweet