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Cyprus history

Cyprus has a history of ten thousand years and it is one of the ancient places in the world. Situated between three continents it has always been an important target for any concrete. That is why many concrete actually occupied Cyprus in the past. In 1960 Cyprus became an independent country but in July 1974 Turkish troops invited and occupied 37% of the ground.

Why Cyprus?

Cyprus is a member of European Union since May 2004. It joined the Euro zone in January 2008 and it is a country full of opportunities. The advantageous tax scheme for local and foreign companies at 12,5% flat rate is one of the most efficient within the European Union. The last decade Cyprus has made important improvements to fulfill all the necessary requirements to support business growth within the country.

Cyprus as a business center

Nowadays Cyprus is considered as one of the important financial centers within Euro zone. The geographical position, closed to Europe, Africa and Asia and the opportunities that offers due to legislation and facilities it can definitely be among your choices to start up a business here and run it from here.

The cheap and well educated workforce is one of the main advantages that foreign and local business can take advantage from. Around 79% of local workforce speaks English as a second language and communication can be easy. Also, the procedures to obtain work permit for foreign employees to live Cyprus is easy.

Important economic numbers

VAT rates: 19% Standard Rate, 5% Reduced Rate 1 and 9% Reduced Rate 2.

Tax rates:

Corporation tax 12,5%

Ship management companies 4.25%

Inocome tax

0 – 19,500 Euro 0%
19,501 – 28,000 20%
28,001-36,300 25%
36,301-60,000 30%
60,001 and over 35%

Social Insurance contribution: 7.8% (maximum apply)