Why Cyprus?

1 September 2016

Elea Golf Course, Cyprus

An attractive legal and tax framework is complemented to perfection by the unique natural attributes of a geostrategic location.
A majestic island strategically located in the Eastern Mediterranean Sea, Cyprus has long been a trading post, a peaceful meeting place and a safe haven for neighboring countries. It remains so today more than ever, in a troubled region.
A growing economy, Cyprus aims at setting the record straight when it comes to its reputation as a regional hub for international business. It does so by enacting legislation incentivizing investment, such as the exemption on capital gains tax for property acquired until the end of 2016, abolishing the immovable property tax starting with January 1st 2017, residency and citizenship programs based on investment, as well as very favorable fiscal rules for corporations and non-domiciled individuals.
If there was ever an ideal climate conducive to work-life balance, Cyprus is it. The birth place of Aphrodite, the legendary goddess of love, boasting 57 Blue Flag beaches, exquisite 5-star resort hotels with some of the world’s best spas, opulent property developments with breathtaking views, a select choice of award-winning golf courses, and a state of the art private terminal for executive jets, Cyprus is quickly becoming a high-end destination for leisure and business travelers. Due to its strategic position and non-domiciled rules, the island can host expatriate executives that manage regional businesses anywhere from Europe to Africa and the Middle East.
The exceptional quality of life is often mentioned in conversations with international executives residing there. The sea and the sun come first in any ranking, as Cyprus offers a unique combination of effortless sustainable living with eco-tourism and authentic gastronomy, of which the halloumi cheese has gained international acclaim. A close second is the friendly character of the locals, followed by the sense of security.
The foreign companies that have chosen Cyprus as a base for their operations have done so in order to take advantage of the overall business-friendly environment offering the whole package of attributes to consider when investing in a location: a favorable tax system coupled with an enforceable rule of law and highly skilled, English-speaking workers, many of whom traditionally receive their degrees in the UK. Philip van Dalsen, CEO of MTN Cyprus, emphasizes that “the quality of the workforce in Cyprus and the ability to easily find skilled and adaptable graduates is certainly an advantage for this location.”
The setup is further improved by the government’s understanding that its role in the business world shouldn’t go beyond catering to companies’ demands of best practices and smart infrastructure. Minister of Transport, Communication, and Works, Marios Demetriades clearly states this modus operandi as his main policy: “I believe that the government should not be running businesses.”
Cyprus is therefore in a position to facilitate geopolitical stability and development for the region, serving as a model of resilient institutions determined to learn from past mistakes and ensure sustainable growth, functioning  ”as the Switzerland of the Eastern Mediterranean”, in the words of the Minister of Foreign Affairs, Ioannis Kasoulides.
OER: Business Intelligence Unit (BIU) supports free sharing and open educational resources. All the materials published on our website may be reproduced in any form for educational or non-profit purposes without special permission from BIU, provided acknowledgement of the source is made. For reproductions having a commercial purpose we welcome applications for permission consisting of a statement of purpose and the extent of the reproduction at info@businessintelunit.com