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Thursday, July 18, 2024

Cyprus: investment opportunities and benefits

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If you’re looking for a high value investment opportunity you should definitely consider investing in Cyprus. Cyprus is a European country, situated in the Mediterranean sea. The island was introduced to the European Union in 2004. After its introduction, it decided to become a tax haven by imposing strict privacy laws and extremely low corporate taxes. However, this did not always attract the right kind of investment. 

Nowadays, Cyprus is looking for more honest foreign investment, by complying to the EU and international tax laws. Making Cyprus a safer place to invest attracted more and more international investment. Cyprus has since focused on creating a good quality of life for its people and a better environment for businesses. Among that plan were some great measures to attract foreign investment. In this article, you’ll read what these measures are and how you can benefit from them. 

Project Bank

Project Bank is one of the measures Cyprus has taken to make investing in the island easier for foreigners. Project Bank is a platform, where foreign investors can find investment opportunities in Cyprus that fit their interests and portfolio. The platform describes itself as a “matchmaking platform connecting Investors and Project Owners”. Project owners can sign up and showcase their plans and projects on the platform. Foreign investors can then find the project on the platform and contact the project owner to discuss investment. 

Project owners and investors on the platform have to go through a strict identification and selection process in order to make sure that they are legit and that they meet all criteria the platform has imposed. The project is an initiative from Invest Cyprus, a governmental institution that was established to promote Cyprus as a foreign investment destination.

Government incentives for foreign investors

A foreign investor can benefit from the many financial benefits that the government of Cyprus has established. For example, Cyprus has one of the lowest corporate tax rates of Europe with a rate of only 12,5%. Cyprus also offers dividend participation exemption, meaning that there’s a tax exemption for receiving dividends. There are also tax exemptions for interest not arising from ordinary activities, profit of foreign establishments (under conditions), personal tax exemption for new residents, and more. Cyprus also has double tax treaties with over 60 countries in order to avoid double taxation. 

Where to invest in? 

Cyprus promotes many investment opportunities on its Project Bank platform that could be of great interest for foreign investment. There are plenty of opportunities in different areas. For those looking for sustainable and environmentally friendly opportunities, there are also plenty of projects to choose from. Following are some examples of investment opportunities in Cyprus. 

Film making

A part of Cyprus’ diplomatic policy is to promote the country by means of films. For this reason, there are great opportunities for filmmakers in Cyprus. Filmmakers may receive a cash rebate of 40% on eligible expenditures and up to 50% tax exemption on the taxable income. These benefits are eligible for films, series, or other audiovisual material promoting Cypriot, European or world culture. 

Real estate

On the platform of Project Bank, you’ll find plenty of real estate investment opportunities. Holiday houses and hotel properties are by far the most popular destination for foreign investment, as the tourism sector in Cyprus is growing rapidly and is said to grow another 5% in the coming decade. Besides holiday houses and hotels, the platform also offers the opportunity to invest into (sustainable) office buildings and private properties. 

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