Business in Cyprus. Is it worth opening your own business on the island and how much money can you make from it?
Cyprus is one of the most attractive destinations for investors and businessmen from all over the world. Despite the fact that Cyprus has been a full member of the European Union since 2004, this island can be safely called a semi-offshore zone. The government of Cyprus allows everyone to open companies on the island, regardless of their citizenship.
The Cyprus tax system is one of the best in the European Union. Cyprus companies pay only 12.5% income tax, excluding dividends paid, which are taxed separately. VAT payers receive a common European tax number in Cyprus and are entitled to use zero taxation when exporting and importing goods within the European Union Zone.
The advantages of Cypriot companies can also be attributed to their legal and financial services which on average range from 3 to 5 thousand euros per year.
And if the legal aspects of doing business in Cyprus can be called one of the best in the world, then from the financial and domestic political side, Cyprus no longer looks so cheerfully. In Cyprus itself, you can hardly earn a lot of money, even by investing a decent amount in your business (from 1 to 10 million euros). The profitability of a business in Cyprus is too low; everything is mainly reduced to the tourism business, namely the renting of hotels, guesthouses, villas, apartments, as well as the opening of restaurants, cafes and catering outlets. The competition in these businesses is too great, and we do not recommend businessmen and investors to invest in the tourism business in Cyprus, as there is a high risk that you will not be able to return even your own invested money.
It is beneficial to open a company in Cyprus that works and is customer-oriented to the world markets, in particular to the markets of the European Union, Russia and the CIS countries.
In our opinion, promising business for companies registered in Cyprus are the following:
1) Information and IT business, namely the creation of Internet portals, online stores, marketplaces, online games, mobile applications and various types of software for PCs, laptops and mobile devices based on Android and IOS.
2) Business of agencies for the sale / lease of residential and commercial real estate, as well as agencies in the field of advertising services and promotion of companies in social networks and messengers.
3) Activities of legal and financial companies, namely international law firms providing legal services in the field of entrepreneurship and legal assessment of companies in the European Union, as well as the financial companies business, especially in the field of various investment programs and Forex markets.
As you can see, it is beneficial to open a business in Cyprus that is oriented only to other countries, especially to countries within the European Union zone, as well as to Russia and other CIS countries. We do not recommend you invest a lot of money in the infrastructure of Cyprus itself and its internal market due to its unstable financial situation, as well as the “explosive” political situation on the island, part of which has the status of an unrecognized state and is actually controlled by Turkey.
This article was prepared by our business analyst Elena Kravchenko especially for Chameleon Business.
If you have any questions related to opening and running business in the European Union, Russia, CIS countries, UAE, China and Turkey, you can always consult with our business analysts by emailing us: [email protected]. Our experts will answer all your questions within 1-3 business days.
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