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Top 5 Reasons to Relocate Your Business to Cyprus in 2025
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Cyprus is a versatile platform for businesses of all types and sizes. The island is home to thriving enterprises in sectors like international trade, logistics, asset management, IT, finance, and startups. This success stems from its favorable tax environment, well-developed business infrastructure, and high quality of life.
In this article, we highlight five key reasons why relocating your business to Cyprus in 2025 is a smart move:
1. Low Corporate Tax Rates
One of the most compelling reasons businesses choose Cyprus is its advantageous tax system, making it one of the most business-friendly jurisdictions in the EU.
Fixed Tax Rate: Corporate tax is just 12.5%, among the lowest in the European Union.
IP Box Regime: Up to 80% of profits derived from intellectual property are exempt from taxation, reducing the effective tax rate to as low as 2.5% — one of the most competitive rates in the EU for IT and innovative businesses.
Additional Tax Incentives:
0% tax on dividends, inheritance, and gifts.
A tax-free personal income threshold of €19,500 annually, allowing employees and company owners to receive part of their income tax-free.
A 50% income tax exemption for foreign professionals earning over €55,000 annually.
These conditions not only save businesses on taxes but also enable growth with minimal expenses.
2. Ease of Business Setup and Operation
Cyprus’s corporate legislation ensures streamlined, fast, and straightforward processes for starting a business.
Remote Registration: Companies can be registered in Cyprus remotely without physical presence. Certified Cypriot lawyers handle all steps, from document submission to obtaining registration certificates.
Minimal Requirements: Setting up a company requires just one shareholder and one director, who can be residents of any country. The nominal share capital is minimal, making it accessible for both small and large businesses.
Business Language: English is widely used for business in Cyprus, including legal and accounting documentation, as well as communication with government bodies. This eliminates the need for translations and minimizes misunderstandings.
3. Cyprus as a Strategic Business Hub
Situated at the crossroads of Europe, Asia, and Africa, Cyprus is ideally located near key trade routes connecting these continents. This strategic position provides businesses with access to over 500 million EU consumers and millions more in neighboring regions.
The island features modern seaports and international airports with connections to major global hubs, essential for export, import, and logistics businesses.
The Cypriot government actively invests in research and innovation infrastructure, creating opportunities for IT companies and startups.
As part of the THALIA 2021–2027 program, aligned with EU policies, €150 million has been allocated to strengthen the startup and innovation ecosystem. The program’s total budget of €1.81 billion highlights Cyprus’s ambitious approach to fostering growth in high-tech sectors, digitalization, and entrepreneurship.
These initiatives make Cyprus not only a strategic location but also an innovation-driven destination for international companies aiming to expand globally.
4. Affordable Business Costs Without Compromising Quality
Operating a business in Cyprus is significantly more cost-effective than in most European Union countries. Expenses for office rentals, employee wages, utilities, and other operational costs are 10–20% lower, making Cyprus an attractive choice for budget optimization. Despite the lower costs, the island maintains high-quality infrastructure, and commercial real estate in cities like Nicosia, Limassol, and Larnaca is offered at competitive prices.
Cyprus also provides additional financial benefits, such as low administrative expenses, affordable internet and communication services, and tax advantages. For example, the absence of dividend taxes and a low corporate tax rate create favorable conditions for effective financial management.
5. Seamlessly Combining Business and Family Life in Cyprus
Cyprus is the perfect destination for entrepreneurs seeking to balance a thriving business with a comfortable family life. The island offers a lifestyle designed to support business growth while providing a high quality of life for individuals and their families.
Climate: Cyprus boasts one of the most favorable climates in the Mediterranean, offering ideal conditions for conducting business in a pleasant environment.
Safety: Ranked as the safest country with a population under 5 million, Cyprus offers a peaceful atmosphere and a low crime rate, making it an excellent place to live.
Education: For families with children, Cyprus has one of the best private education sectors in Europe. International school programs are conducted in English, ensuring top-tier learning opportunities.
Healthcare: A robust healthcare system provides access to free medical services.
Real Estate: The real estate market is abundant with affordable housing options, ranging from luxurious high-rise apartments to seaside villas.
These advantages are just a few of the many factors that make Cyprus a highly attractive location for doing business.
Our legal experts in Cyprus provide full support for all client activities, including purchasing or registering a business, opening bank accounts, and offering a complete suite of services for obtaining residence permits for the client and their entire family.
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In 2013, Anastasia Taran graduated with honors from the National University "Odessa Law Academy", earning a Master of Laws degree. She joined Feod Group in 2018 and has since gained extensive experience in international corporate, tax, and immigration law....
In 2013, Anastasia Taran graduated with honors from the National University "Odessa Law Academy", earning a Master of Laws degree. She joined Feod Group in 2018 and has since gained extensive experience in international corporate, tax, and immigration law.