Trading & Investment Consultancy

Incentives:

  • Low corporation tax.  Net Profits are taxed at the rate of only 10%

  • Low income tax

  • A 10 year tax holiday on profits resulting from the projects operation.  (For investments in ancillary tourist projects.

  • Partial subsidization of the cost of the preparation of the relevant pre-feasibiity studies.

  • Double tax treaties with 26 countries including the U.S.A

Other advantages:

  • Excellent Communications

  • Advanced Banking network

  • Very good geographical position. (Cyprus lies at the meeting point of Europe-Africa-Asia

  • Cyprus government maintains very good relations with the Arab World and the countries of the East Europe.

  • The accession of Cyprus to the European Union.

Foreign Direct Investment Policy

There are NO RESTRICTIONS if investors are citizens of EU member states.  For investors coming from other countries the Government relaxed the rules and regulations applicable to inward investments.  In the majority of cases administrative procedures have been simplified and foreign participation of up to 100 percent is allowed.

1. Primary Sector

Up to 49% foreign participation is allowed for activities relating to agriculture, animal husbandry, fishing, forestry etc

2. Secondary sector

Foreign participation of up to 100% is permitted for bonded factories or industrial units in the Industrial Free Zone.

3.  Tertiary Sector

Foreign participation of up to 100% in permitted for services included in Appendix 1 & Appendix 2  Exceptions to the general tertiary sector policy are the restaurants, the hotels,
and hotel apartments.

Appendix 1:LIST OF SERVICES FOR WHICH MINIMUM LEVEL OF INVESTMENT IS CY£50,000

1.BUSINESS SERVICES

      

Professional Services

Computer and Related Services

Research and Development Services

Other Business Services
       

a. Legal Services

a. Consultancy services  related to the installation of computer hardware

a. Natural  sciences

a. Advertising

b. Accounting auditing and book keeping

b. Software implementation

b. Social sciences and humanities

b. Market research and public opinion polling

c. Tax consultancies

c. Software implementation

  

c. Management consulting

d. Architectural closing

d. Data processing

  

d. Technical testing and analysis

e. Engineering

e. Data base management/ maintenance

  

e. Building clearing services

f. Urban planning and architectural landscaping

   

f. Photography

g. Medicine and dentistry

   

g. Packaging

h. Veterinary services

   

h. Catering

i. Services provided by midwives nurses, physiotherapists and Para-medical personnel

      
       

2.COMMUNICATIONS SERVICES
COURIER SERVICES

3. RECRETIONA, CULTURAL, TOURISM AND SPORTING SERVICES (other than audiovisual services)

a. Entertainment (including theatre, live bands and circuses)

b. News agencies

   
   

Appendix 2:LIST OF SERVICES FOR WHICH MINIMUM LEVEL OF INVESTMENT IS CY£100,000

1.BUSINESS SERVICES

  

A. Rental /Leasing Services Without Operators Relating to

B. Other Business Services

a. Ships

a. Services incidental  into mining and manufacturing

b. Aircrafts

b. Investing and security

c. Transport equipment

c. Related scientific and technical consultancy

d. Other machinery and equipment

d. Maintenance and repair of equipment (not including maritime

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vessels aircraft or other transport equipment)

2. COMMUNICATION SERVICES

Audiovisual Services

  1. Motion picture and video tape production and distribution

  2. Motion picture projection

  3. Sound recording

3. CONSTRUCTION SERVICES

General construction companies 

4. EDUCATION SERVICES

  1. Primary education

  2. Secondary education

  3. Other educational services
     

5. ENVIRONMENTAL SERVICES

  1. Sewage treatment and disposal

  2. Refuse disposal

  3. Sanitation and similar services

6. RECREATIONAL, CULTURAL AND SPORTING SERVICES

Sporting and other recreational services

7. TRANSPORT SERVICES

A. Maritime Transport Services B. Road Transport Services
a. Passenger transportation a. Passenger transportation
b. Freight transportation b. Freight transportation
c. Rental of vessels  with crow c. Rental of commercial vehicles with operator
d. Maintenance and repair or vessels d. Maintenance and repair of road transport equipment
e. Pushing and towing services e.  Supporting services

4.  Restricted Activities

Applications for the following activities are rejected outright by the Central Bank.

  • Real estate development

  • Tertiary education

  • Offices for servicing of foreign airlines at the airports.  However airline companies of foreign companies are except if they can offer such services to their own aircraft.

  • The provision of public utility services cover by specific legislation such as electricity, postal services, and agricultural insurance, television and radio stations.

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