Cyprus is located in the north east of the Mediterranean where Europe, Asia and Africa meet. Its location has played a vital part in its development as a centre for finance and tourism. Spread over 9251km², Cyprus is the third largest island in the Mediterranean, behind Sicily and Sardinia. With a population of approximately 850.000, 80% of Cyprus’ population is Greek Cypriot, 11% are Turkish Cypriot, 8% are foreign residents and a further 1% is comprised of other small minorities. Since 2004, Cyprus is a full member of the European Union and adopted the Euro on 1st January 2008.
The economy of Cyprus can generally be characterised as small, open and dynamic, with services constituting as its engine power. After joining the European Union in 2004, the economy has undergone significant economic and structural reforms that have transformed the economic landscape.
Cyprus economy is dominated by the services sector where tourism and financial services accounting for nearly 80% of the country’s’ €18.1 billion GDP.
As a former British colony, Cyprus law is based on English Common Law which was amended in recent years to meet European Union requirements.
The Cyprus legal framework is extremely strong. It provides, however, foreign business a familiar and reliable framework to operate.
The country’s legal and regulatory system is considered to be one of the most favourable in Europe and is fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF) and the Organization for Economic Co-operation and Development (OECD).
Cyprus can be categorised as a premium corporate tax planning jurisdiction providing a simple, effective and transparent tax regime that is fully compliant with the EU laws and regulations.
The tax framework provides numerous advantages for both individuals and corporations.