Why Choose Cyprus?

An Ideal Place to Live, Work, and Conduct Business

General Overview

Located at the northeastern edge of the Mediterranean, Cyprus is the third-largest island in the region, covering 9,251 square kilometers (3,572 square miles). Human activity on the island dates back to around the 10th millennium BC, with Mycenaean Greek settlements established in the 2nd millennium BC. Today, Cyprus has a population of approximately 900,000 people, spread across six districts and over 100 villages, each with its unique character, reflecting the country’s diversity despite its compact size.

The capital city, Nicosia, is the largest urban center, while the island enjoys a typical Mediterranean climate: long, dry summers from mid-May to mid-October and mild winters from December to February, with brief spring and autumn seasons.

9,251
square kilometers
900,000
people
100
villages

Political and Legal Framework

Cyprus is a sovereign republic with a presidential system. Executive authority rests with the President, elected for a five-year term, who appoints a Council of Ministers. Legislative power resides with the House of Representatives, also elected for five years, and the judiciary operates independently.

Cyprus has developed into a strategic location for living, working, and conducting business, supported by a stable legal framework, robust regulatory system, and a pro-business environment.

Strategic Advantages of Cyprus

  • Geographical Hub: Gateway to Eastern Europe, the European Union, and the Middle East
  • EU & Eurozone Membership: Full integration with European markets
  • High Quality of Life: Safe, clean, and culturally diverse
  • Attractive Tax and Legal Regime: Competitive corporate and personal taxation
  • Skilled Workforce: Highly educated, multilingual professionals

Cyprus’s location at the crossroads of Europe, the Middle East, Africa, and Asia makes it a pivotal hub for international business. As an EU member state and an evolving international financial center, Cyprus offers extensive opportunities for trade, investment, and partnerships.

Despite historical challenges, including the Turkish military invasion in 1974, Cyprus has rebuilt its economy and joined the European Union in 2004, adopting the Euro in 2008.

Living, Working, and Doing Business in Cyprus

Legal System and Corporate Governance

Cyprus combines the principles of English Common Law with European continental law, incorporating statutory legislation, judicial precedent, EU directives, and international treaties.

The Cyprus Companies Law (Cap. 113) governs the establishment, management, and dissolution of companies, following a framework similar to UK company law. Key legal principles, including directors’ fiduciary duties, are aligned with international best practices, making Cyprus a reliable jurisdiction for corporate structures.

Tax Benefits and Incentives

Cyprus offers one of the most attractive and flexible tax regimes in Europe, providing numerous incentives for individuals and businesses:

  • Corporate Tax: 12.5% (among the lowest in the EU)
  • Tax exemptions: Dividends, interest income, capital gains, foreign exchange gains
  • Notional Interest Deduction: 80% for equity investments in Cyprus companies
  • IP Tax Regime: 2.5% rate for qualifying intellectual property income
  • R&D and Startup Incentives: Deductions up to 120% for eligible expenditure
  • Audiovisual Industry Incentives: Tax deductions and partial income exemptions
  • No inheritance, immovable property, or withholding taxes on certain international transactions
  • Growing Double Tax Treaty network: Over 65 countries

These incentives make Cyprus a preferred destination for international investors, corporate relocations, and wealth management.

Living and Working in Cyprus

Cyprus consistently ranks highly in global indices for:
  • Safety and security
  • Retirement destinations
  • Cleanest beaches and water quality in the EU
  • Climate (2nd best worldwide)

Professional and Educational Excellence

Cyprus is recognized as an international center of excellence, with a highly educated and multilingual workforce:
  • Numerous professionals holding ACCA, ICAEW, and other international certifications
  • A well-regulated services sector for accountants, lawyers, and consultants
  • A strong network of corporate, accounting, and law firms

Why Cyprus Stands Out

Cyprus offers a unique combination of strategic location, favorable business environment, skilled workforce, and high quality of life, making it an ideal choice for individuals, businesses, and investors looking to establish a presence in the region.