Foreign investment
The Government, in order to attract inward investment and enhance economic prosperity in Cyprus, liberalized its foreign direct investment policy for both EU and non-EU nationals. In all but a few exemptions, banking and media sectors, foreign investors may now participate with no limits on equity holdings. In general, foreign investors may invest and do business in Cyprus on equal terms with local investors.
Investment from EU countries
Direct: There are no restrictions on the amount of the investment.
Portfolio: Up to 100% of the share capital of a company listed on the Cyprus Stock Exchange may be acquired. In the banking sector, the maximum equity participation is 50% and no individual may own, directly or indirectly, more than 9% of a bank’s share capital without the approval of the CBC.
Investment from non-EU countries
Direct: Foreign direct investment in Cyprus from non-EU countries is fully liberalized, although licenses may still be required for certain specific investment activities.
The liberalization allows foreigners to register companies in Cyprus or buy shares in existing Cypriot companies without the approval from the CBC. Applications for such activities should be submitted directly to the Registrar of Companies and Official Receiver.
Advantages
The advantages for locating a business in Cyprus include:
The Government, in order to attract inward investment and enhance economic prosperity in Cyprus, liberalized its foreign direct investment policy for both EU and non-EU nationals. In all but a few exemptions, banking and media sectors, foreign investors may now participate with no limits on equity holdings. In general, foreign investors may invest and do business in Cyprus on equal terms with local investors.
Investment from EU countries
Direct: There are no restrictions on the amount of the investment.
Portfolio: Up to 100% of the share capital of a company listed on the Cyprus Stock Exchange may be acquired. In the banking sector, the maximum equity participation is 50% and no individual may own, directly or indirectly, more than 9% of a bank’s share capital without the approval of the CBC.
Investment from non-EU countries
Direct: Foreign direct investment in Cyprus from non-EU countries is fully liberalized, although licenses may still be required for certain specific investment activities.
The liberalization allows foreigners to register companies in Cyprus or buy shares in existing Cypriot companies without the approval from the CBC. Applications for such activities should be submitted directly to the Registrar of Companies and Official Receiver.
Advantages
The advantages for locating a business in Cyprus include:
- corporate tax rate 12.5%
- Extensive list of Double Tax Treaties
- Geographic location
- Banking framework and infrastructure
- Legal system
- Accounting infrastructure
- Tax exemptions for profits for non-resident companies
- Tax exemption for dividend income subject to applicable criteria
- Full adoption of EU Directives and EU Business code of Conduct