Growing demands from global regulation are making it increasingly crucial for companies to establish transparency, substance and a physical presence. This trend has also enhanced Cyprus’ appeal as an efficient management and corporate location, where substance is easily created. With a strong pro-business attitude, operational costs substantially lower than in mainland Europe and tax breaks for expat executives, Cyprus offers a conducive business environment providing access to the EU’s market of over 500 million people, as well as a secure base to tap into the evolving markets of the Middle East and Africa.

Gateway to Growth Markets

The geostrategic position of Cyprus in the Eastern Mediterranean has long played a pivotal role in influencing the country’s destiny and prosperity, and has led to close cultural and business relationships with countries in the region. A former British colony, Cyprus has a longstanding relationship with the UK, enjoying close business ties as well as a comprehensive, modern and forward-looking legal and regulatory framework based on English Common Law principles. And with Brexit on the horizon, Cyprus may discover further advantages by attracting companies that wish to continue operating in an EU jurisdiction with a familiar UK legal framework.

Cyprus’ entry into the EU in 2004, and the eurozone in 2008, was welcomed by the international business community, who saw it as a new opportunity for foreign companies to use Cyprus as a convenient entry point into the European marketplace through EU passporting rights. Multinationals from a range of different sectors have already chosen Cyprus as the location for their regional headquarters. Giants such as Weatherford, AFP, NCR, BS Shipmanagement, Kardex, Wargaming and AMDOCS are just some of the corporations that have based operational or corporate management functions on the island.

Cyprus is also one of the most influential global hubs for ship owning and shipmanagement services. Thanks to its advantageous legislative framework, the island has attracted some of the world’s most influential names in shipping for more than 50 years. Today, Cyprus is the largest third party ship management centre in Europe and the largest crew management centre in the world, while the island’s international ship register is the third largest in Europe and the 11th largest in the world. With around 130 shipping companies based in Cyprus, the success of the sector has also developed clusters and auxiliary services, which is a model that could be successfully replicated in other sectors, such as the budding oil and gas sector. New legislation and operating licenses issued by the Cyprus Securities and Exchange Commission (CySEC) for CIFs, forex and binary companies have thus far proven highly advantageous to Cyprus, enabling the island to attract new business, create more jobs, attract talent and boost the economy.

Corporate EU Location

Cyprus offers a strategic location, a competitive and EU-approved tax environment, a 12.5% corporate tax rate, an educated English-speaking labour force, excellent telecommunications, modern banking and legal infrastructure, and a high quality of life – all of which make it an ideal international management centre and springboard into neighbouring markets. Foreign companies already based in Cyprus comment favourably on their experiences with local employees in terms of productivity and dependability. Doing business in and from Cyprus is easy and straightforward. Home to a major international business and financial services sector, the country is an ideal base for region-wide corporate coordination and central management functions, sales, marketing and customer service. As a pro-business, neutral, cost-effective and politically stable country, Cyprus offers companies a perfect climate to successfully compete in the region. A fiscally efficient tax structure leads the way and is complemented by double tax treaties with 60 countries, facilitating international business and ensuring a smooth trading environment.

All the Right Connections

In addition to its geographical proximity to major markets, Cyprus also scores high on connectivity. The country is connected by air through its two international airports with major cities in Europe and key destinations in Asia, North Africa and the Middle East. In the last two years, connectivity has seen further improvement with new airlines adding Cyprus to their schedules and existing airlines increasing the frequencies of their flights. Thanks to its location, Cyprus enjoys business-friendly time zones, enabling international companies to do business with the East in the morning, Europe throughout the day and with the West in the afternoon. The country also has long-established links with Eastern European countries with many Cypriot professionals having in-depth knowledge of these markets, and often acting as key business introducers.

Cosmopolitan Lifestyle

The influx of new companies setting up in Cyprus, on average 1,000 each month, has spurred the development of new luxury multi-use office complexes in Limassol and Nicosia. Over the years, the coastal city of Limassol has steadily grown to become the main international business hub, while the inland capital city Nicosia attracts multinationals that require closer access to government. The majority of international companies choose Limassol, due to the cosmopolitan seaside lifestyle, the large expat community and the short distance to both Larnaca and Paphos international airports. New commercial buildings like ‘The Oval’ have raised the bar for prestigious commercial addresses in Cyprus. The tallest office building in Limassol offers large open air balconies and uninterrupted views across the Mediterranean – an enviable working environment for mixing business with pleasure. A number of other mixed-use landmark buildings are springing up across the city offering residential, commercial and retail space and are changing the skyline of Limassol, offering stunning views and rooftop bars.

For companies needing proximity to ministries and government departments, the capital Nicosia is also expanding its stock of state-of-the-art offices. For jet-setters, Larnaca – located on the sea and adjacent to the airport – might be the right choice. Cyprus caters for companies of all sizes and smaller organisations or those newto Cyprus, can easily find companies offering serviced office rental on a short-let or permanent basis. Regus, with offices across the world, has locations in both Limassol and Nicosia, and has been joined by numerous local companies offering turn-key spaces.

The Pull Factor

Cyprus has established itself as a magnet for foreign- owned companies and is continuously improving its competitive position. A stable business environment and excellent quality of life are just a couple of the many reasons why companies relocate senior decision makers to perform strategic functions from Cyprus. In the long term, the country has great prospects to benefit from growth in the region and become an increasingly popular choice as a location for international and regional headquarters. Boasting the lowest crime rate in the EU, a superb Mediterranean climate, competitive personal tax rates, as well as excellent educational and healthcare systems, Cyprus is an easy sell for expats and in particular to those with families. Professional, but without a hint of the rat race, makes business both pleasurable and profitable – establishing Cyprus as an ideal location to finally achieve the ever-elusive work-life balance. 

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May 2017