Business immigration, collaboration, investment, and support are all welcome in Cyprus. In particular, entrepreneurs from non-EU nations are increasingly choosing Cyprus as their startup destination. The government supports business immigration as a successful enterprise since it improves Cyprus’s economy and reputation. It is feasible to get a passport from a nation that is a member of the European Union and transfer corporate assets to the European region by registering a company in Cyprus. Cyprus recognizes second citizenship, allowing you to keep your nationality.
Startup visa for Cyprus
Cyprus’s regulation is very steadfast when it comes to the growth of startups. For those with the potential to succeed in the company and the know-how to execute creative ideas, Cyprus offers a start-up visa. Additionally, venture capitalists might provide the first funding needed to launch a business. Crowdfunding or other fundraising sources are used for this. Progressive company owners have a one-of-a-kind chance to realize their cutting-edge business ideas thanks to the Cyprus Startup Visa. Entrepreneurs may see a significant return on their investment and move to Europe (together with their families). According to a streamlined process, the family of an entrepreneur also obtains a residence permit in Cyprus together with the visa. Opening a start-up visa in Cyprus is crucial for the creation of innovations and carrying out research activities. The fledgling company’s founder and up to five of its top managers may all apply for visas. However, provided that the company’s headquarters would be established.
Conditions for acquiring a startup visa for Cyprus
They include:
- An applicant must be 18 years old;
- Complete an application using a particular form;
- Confirm the availability of the start-up capital required (20,000 euros);
- Create a business plan for a start-up idea;
- Be fluent in Greek or English;
- Possess a diploma from a higher education program.
The applicant is required to provide an audit report if a startup firm already exists. If the initiative can demonstrate that it is effective, the government has begun providing permanent work permits and residency in Cyprus since 2018. It implies that there is no set period over which a firm must grow. As a result, investment immigration is quite established in this country. Foreign nationals may receive a long-term residency permit in Cyprus, and after seven years there, they are eligible to apply for individual and family citizenship.
Forms of company in Cyprus
Foreign investors are permitted to buy or establish a business in Cyprus that engages in one of the permitted forms:
Private company limited by shares
The responsibility of shareholders is restricted to their equity holdings. The founders or their designated representatives must sign the company’s articles of formation and memorandum of association. The minimum and maximum number of stockholders are 1 and 50 respectively. Nominee shareholders may be used to preserve secrecy. There must be one director at a minimum. They could be local or foreign.
Open joint-stock company limited by shares
The bare minimum is seven members. There must be at least two directors. It can offer bearer shares. The public may be invited to subscribe for shares or promissory notes. €25,629 is the required minimum share capital.
Partnership or joint venture (general or limited)
A partnership is created by two parties and often has 20 people or legal organizations as members. In a partnership with unlimited liability, each partner shares full and equal responsibility, without limitations, for the payment of all debts and obligations alongside their fellow partners. A limited liability partnership must have at least one general partner who is accountable for the partnership’s debts and obligations.
Branch of a foreign company
The duties of the branch are entirely the parent company’s. The branch is not a distinct taxable entity from the parent business and serves as the non-resident corporation’s permanent representative in Cyprus. The parent business’s name must also be used by the branch firm. A representative who resides in Cyprus (either a real person or a legal entity) and will communicate with the tax authorities must be chosen for the branch.
Benefits of a Cyprus-based business
A Cyprus resident company offers numerous advantages to businesses. These benefits encompass cost-efficiency with low operational and administrative expenses, accompanied by a comprehensive suite of business support services. Cyprus also provides an opportunity to optimize tax payments through favorable tax incentives. Additionally, the freedom to transfer currency seamlessly between Cyprus and other nations without currency exchange restrictions is a significant perk. Furthermore, certain companies, particularly those specializing in securities sales, can enjoy a 0% income tax rate. Notably, activities such as mergers, reorganization procedures, transfers, and share and asset exchanges are exempt from taxation, further enhancing the appeal of Cyprus as a business-friendly destination.
Tax
Individuals in Cyprus are subject to a 19% VAT rate, however, there are several chances to benefit from preferential taxes. For those who pay taxes, the dividend tax is 17%. Legitimate organizations are subject to a 20% capital gains charge. In Cyprus, the enterprise charge rate is 12.5%. The rate is among the lowest in the EU.
Eligibility requirements for Cypriot citizenship
Invest at least 2 million euros in an alternative investment fund or at least 2.5 million euros in the acquisition, establishment, or participation of a Cypriot firm. If you choose the first option, the business must employ at least 9 Cypriots or residents of other EU nations.
You may find these articles helpful