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CYPRUS IS THE IDEAL LOCATION FOR UK COMPANIES TO RELOCATE POST-BREXIT

dplawcyprus.com @ dplawcyprus

CYPRUS BENEFITS TO UK COMPANIES A

FUSION

OF

EU

AND

COMMONWEALTH


OUR SERVICES CORPORATE our work motto is to deliver professional personalized and prompt service to our clients

With over 15 years of experience in the field, our team of lawyers can assist companies with all aspects of corporate and commercial law. For every stage, from pre-incorporation to liquidation.

immigration Cyprus offers many immigration schemes to suit different needs and abilities. An attractively low personal tax regime and high quality of life makes Cyprus the ideal destination.

OUR COMPANY DP Law Cyprus is a boutique business law firm in Cyprus located in the country’s capital city, Nicosia. We offer varied services under the umbrella of corporate and commercial law for our international clientele who can benefit from the advantages of Cyprus’ tax regime, immigration programs, EU membership and geographical location.

DP Law is well-familiarised with the array of programmes and ready to assist for a swift and successful application.

tech & it We are passionate about Innovation and Information Technology. Cyprus has a lot to offer to any aspiring tech company and we are committed to support the growth of Cyprus to a Silicon Island.


CYPRUS BENEFITS

EU AND COMMONWEALTH

strong business support services

MEMBERSHIP

attractively low tax regime

access to markets

quality of life

English as a business-language

access to talent

fast-track mechanism

low cost of doing business


ENGLISH LANGUAGE Businesses in Cyprus can operate fully in English. Business transactions, government services, and banking can all be conducted in English.

ACCESS TO TALENT Cyprus has the youngest population & workforce in the EU. 55% of the workforce has a tertiary degree, one of the highest in the EU. Many Cypriots earn their degrees from UK universities and complete professional training in the UK. Visa-free access to European talent and easy access to global talent via various immigration schemes for foreign-interest companies.

LOW COST OF DOING BUSINESS Office rental is amongst the cheapest in Europe. A recent report ranked Cyprus the 2nd cheapest. Non-wage employment costs are low, comprising 17% of the total cost of employment, compared to a EU average of 26%.

7

DAYS

SOME OF THE MANY SCHEMES AND POLICIES THAT MAKE CYPRUS TAX ATTRACTIVE

One of the lowest corporate tax rates in the EU, at 12.5%

IP Box tax scheme can reduce the tax for technological companies to 2.5% Attractive Double Tax Treaty network covering more than 60 countries Dividends income, trading in securities, capital gains can be exempt

FAST-TRACK MECHANISM

Cyprus offers a fast-track programme for businesses looking to set-up or transfer to Cyprus. All approval processes are accelerated to 7 working days, and any further operational permits are granted within 30 days.

EU & COMMONWEALTH membership As part of the European Single Market, Cyprus enjoys the free movement of goods, services, and capital with other European Union member states and members of the European Free Trade Association, without tariffs, complex bureaucracy, or regulatory obstacles. Cyprus is also part of the Eurozone, further simplifying trade within the EU. Additionally, Cyprus as a member of the Commonwealth has a strong relation to the UK and enjoys many benefits still, even post-Brexit, relating to the UK that nonCommonwealth EU countries do not automatically or currently have. Cyprus' legal system is akin to that of England & Wales and many sections, such as Company Law, heavily follow English case law.


CASE-STUDIES AND TESTIMONIALS

Many successful companies have already either relocated or expanded in Cyprus.


OVERVIEW OF SCHEMES AND PROGRAMMES FOR FOREIGN COMPANIES AND ENTREPRENEURS


FAST-TRACK BENEFITS Single Point of Contact for the establishment of business in Cyprus, including registration, social insurance registry, VAT registry, all processes required accelerated to approval in just 7 working days.

FAST TRACK COMPANIES MECHANISM

Ability to bring up to 200-300 thirdcountry nationals as personnel. Any operational permits (except building and planning permits) will be granted within 30 working days.

QUALIFYING CRITERIA

With the recent launch of the government’s scheme for modernizing the process by which foreign business can setup headquartering in Cyprus, the fast-track mechanism serves to expediate and simplify the onboarding process for companies from non-EU countries onto the Cypriot business ecosystem.

The company must intend to create a physical presence in Cyprus, i.e. to hire or transfer employees (more below), to establish operations in independent offices. For existing companies, they must show a minimum turnover of €500,000 per year for 3 out of the last 5 years. For new companies, they should provide a reliable 5-year business plan that demonstrates the company’s growth potential.


CRITERIA NON-EU STAFF VISAS

Although generally, a Cyprus company must give priority in employment recruitment to Cypriots and EU nationals before attempting to employ thirdcountry nationals, there is an exception enabling companies of foreign interests to give priority to the employment of third country nationals instead of locals and EU nationals, provided that certain requirements are met. The main aim of the above exception was the attraction of foreign investments.

+

Majority of the company is owned by non-EU shareholders

There must be direct foreign investment of €200.000 to the company

STAFF CATEGORY

MINIMUM MONTHLY SALARY

MAXIMUM NUMBER

DIRECTORS

€ 4,000

5

MIDDLE MANAGEMENT

€ 2,000

10

SPECIALISTS*

€ 2,000

based on annual turnover

SUPPORT STUFF

No minimum

10 - 200

* Mainly includes IT, tech and pharmaceutical specialist jobs

30% of workforce


KEY BENEFITS

START-UP VISA PERMIT

Residence in the Republic without any maximum time restrictions. Instant Family reunification. Self-employment or Salaried Employment. Prospective recruitment of specific number of personnel from non-EU countries.

QUALIFYING CRITERIA Innovative Business

The Cyprus Startup Visa scheme is a newly introduced migration initiative with the aim of encouraging the influx of high-skilled and ambitious tech entrepreneurs from non-EU countries to establish their startup in the Republic of Cyprus. Nationals from third countries can reside and work in Cyprus, as individuals or in a team (of up to 6), in order to develop, establish and operate a startup of high growth potential.

Head Office and Tax Domicile in Cyprus

Access to € 20.000 capital

Good Knowledge of English or Greek


The IP BOX is a corporate tax regime found in many countries, which offers lower tax rates on taxable revenue from qualified intellectual property assets.

IP BOX TAX REGIME

Cyprus has one of the most inviting regimes, with a competitively low tax rate and a wide scope of coverage on eligibility. Its aim is to entice and incentivize research and development of innovative intellectual property in Cyprus.

This scheme is ideal for innovative tech companies, start-ups, and pharmaceutical corporations.

Compared to other EEA jurisdictions which only qualify parents, and limit the regime on self-developed IP, Cyprus' application is much more expansive.

With Cyprus's low 12.5% corporate tax, if you qualify for the maximum 80% IP Box tax reduction, your company's effective tax rate drops to as low as 2.5%.

In Cyprus along with parents, computer software, algorithms, formulas, utility models, novel rights, etc can qualify as IP assets under the regime. There is no limitation that the IP is internally developed, and can thus be outsourced or acquired IP. Cyprus IP Box has one of the widest range on what revenue can qualify and thus be deductible, as well as no limit on overall deduction.


Cyprus enjoys 326 days of sunshine all year round, with the sea being warm and swimmable from May till November, and the winters short and tamed. The country ticks many boxes that make life here ideal and pleasant, and regularly scores top marks in various rankings:

PERMANENT RESIDENCE PERMIT

TOP 5 Safest Country in the World (Value Penguin 2015) TOP 4 Retirement Destinations Globally (Knight Frank 2016) Best Island Economy 2017/18 lifestyle & human capital (fDi magazine) National Healthcare Service of high standard and expediate service

Non-EU nationals can obtain a Permanent Residence Permit in Cyprus via investment in real estate property.

KEY BENEFITS The PRP programme has a wide allowance for family members, which includes parents, in-laws, and financially dependent children up to the age of 25. Additionally, holders of the PRP can seek to make Cyprus and its attractive personal income tax regime their tax domicile, and benefit from the large Double Tax Treaty network of more than 60 countries that Cyprus has, including the UK.

QUALIFYING CRITERIA Prospective Applicants must: Buy a new property in Cyprus worth € 300.000 with 2/3 paid upfront. Have a secure annual income from abroad (dividends from a Cypriot company are allowed). Declare they will not engage in work in Cyprus. Have a clean criminal record.


The highest the Personal Income tax can reach is only at 35% for over € 60.000 annual income. No Property Tax.

RELAXED TAX INCOME

TAX HIGHLIGHTS Cyprus has a very liberal tax system, with many relaxed allowances particularly in income tax. A 50% income tax exemption on remuneration in excess of €100,000 and a 20% exemption on any salary earned from an employment in Cyprus by individuals who were not residents of Cyprus before the commencement of the employment.

No succession or inheritance taxes. Foreign Dividends received by a Cyprus Company are tax exempt. No withholding tax on outgoing dividend, interest, or royalty payments. No tax on passive income for up to 17 years if you qualify as a nondomiciled tax resident. Tailor-made tax provisions for the investment funds industry. Foreign Exchange (FOREX) gains or losses are tax neutral. Tax deductions for investing in startups. A competitive Intellectual Property (IP) regime.


WE ARE HERE TO HELP YOU MAKE THE MOVE

CONTACT US 40 Vyzantiou Street, Office 101, 2064, Nicosia, Cyprus. Tel: +357 22 272360 info@dplawcyprus.com

dplawcyprus.com @ dplawcyprus

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Cyprus Benefits to UK Companies  

Cyprus is the ideal location for UK Companies to relocate post-Brexit. DP Law Firm in Cyprus guides you through the schemes and policies to...

Cyprus Benefits to UK Companies  

Cyprus is the ideal location for UK Companies to relocate post-Brexit. DP Law Firm in Cyprus guides you through the schemes and policies to...

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