CYPRUS BUSINESS ECOSYSTEM
When it comes down to added advantage in the Business Ecosystem, Cyprus is probably among the best!
1. ACCESS TO TALENT
Setting up a business in Cyprus gives access to both an incredibly skilled local workforce and a wider European pool of talent. It also offers a series of programs that allow international professionals to easily relocate.
Cyprus has one of the youngest populations and workforce in the European Union (EU).
The country has a strong and fast growing education system. Since 2000 enrolment in Cypriot universities has grown faster than in any other EU country.
Almost half (46%) of the workforce has a tertiary degree, one of the highest percentages in the EU.
Many Cypriots further strengthen their education by studying abroad — more Cypriots earn degrees from foreign universities than citizens of any other EU country.
Cyprus has a booming private education sector. A greater proportion of students go to privately funded and managed schools than any other country in the EU.
Easy access to Global Talent
The Cyprus Startup Visa regime allows entrepreneurs from countries outside the EU and the European Economic Area (EEA) to come to Cyprus and establish startups with high growth potential.
Work visas for non-EU nationals are available to enable companies to hire from outside the EU whenever the required skill-set is not available locally.
Visa-free access to European Talent
The EU has a workforce of 240 million people, all of whom are eligible to work in Cyprus under EU law.
European universities graduate 4.7 million students a year, providing a constant flow of fresh expertise.
European qualification frameworks ensure that graduates of European universities have comparable skills, regardless of where they have studied.
2. ENGLISH LANGUAGE
Businesses can easily operate in English and with approximately 1.121 billion people across the globe speaking English, businesses in Cyprus have access to a wider choice in employee selection, locally and internationally.
Until 1960, English was the official language of Cyprus and it is still readily used today. 73% of Cypriots speak English which is one of the highest percentages in the European Union.
Business transactions, government services, banking and a wide range of other day to day functions can all be conducted in English.
Many University programs in Cyprus are conducted in English which allows further strengthening of English language skills.
3. QUALITY OF LIFE
Food, climate and affordable costs of living give Cyprus one of the highest qualities of life in the world. With strong trading relationships with many countries across the globe, international residents still have excellent access to products from their native countries.
Cyprus has one of the best climates in Europe, with an average annual temperature of 25 °C and 3,400 hours of sunshine each year.
More than three million tourists, three times the country’s population, visit Cyprus each year, drawn in by its excellent food, warm weather, clean beaches and attractive environment.
Many reports rank Cyprus highly for quality of life.. Considering factors such as real estate, education, healthcare, and the landscape. Factual reports include the following:
1st safest country in the small countries category (Value Penguin 2015).
The most blue flag beaches per capita in the EU (Eurostat).
2nd best climate worldwide (Inter Nations Survey 2015).
Best island economy 2017/2018 in terms of lifestyle & human capital (fDi magazine, FT group).
4. LOW BUSINESS COSTS
Starting and running a business in Cyprus reduces the costs of launching, giving you a longer runway and more flexibility. The money saved on starting and running costs means that more capital can be put into the growth and development of your business.
Lower labor costs
Costs for technical and professional talents are significantly lower in Cyprus than in other major European capitals.
The average hourly rate of €15.80 is significantly lower than the UK (€26.70), Germany (€33.00) or the Netherlands (€33.30).
Non-wage employment costs are low, comprising 17% of the total cost of employment, compared to a European Union average of 26%.
Office space & Business support
Office rental rates are among the lowest in Europe. A recent report found that of 67 locations studied, Cyprus was second cheapest for office rental space.
Critical business support services, such as accounting and legal advice, are also incredibly affordable in comparison to other EU countries.
5. LOW TAXES
Cyprus has one of the lowest tax burdens in Europe and a highly competitive set of tax incentives for businesses and individuals.
The standard corporate tax rate is 12.5%, one of the lowest levels in the EU.
Tech companies producing Intellectual Property (IP) can apply for an 80% tax exemption, reducing the corporate tax rate to an effective 2.5%.
Tax rates for individuals are among the lowest in the European Union. No income tax is required on the first €19,500 of personal income.
Non-domiciled tax residents do not pay tax on dividends, interest or rental income earned abroad.
Investments in innovative small businesses can be deducted from taxable income, up to an annual limit of €150,000.
Dividend payments are exempt from taxation, enabling most tech entrepreneurs to minimize their overall tax burden.
Cyprus has signed 62 tax treaties to help ensure that individuals and companies avoid double taxation and can structure efficiently.
6. EXCELLENT REGULATORY STRUCTURE
Cyprus has an efficient regulatory structure for starting and running a business with strong protection for IP.
Regulatory protections & legal system
Cyprus has strong IP protection through its own legislation on IP and a network of European and international agreements.
The Cypriot legal system is closely aligned to the English Common Law legal system and English Case Law is used in many cases.