Cyprus is the third largest island in the Mediterranean covering an area of approximately 9,250 square kilometres. Our island is situated in a prominent location connecting three continents: Europe, Asia and Africa.
The location of Cyprus in the Mediterranean allows the island to take pride in its geographical position. Mountain tops are a maximum of a 2-hour drive from any place in Cyprus; while travelling there visitors may admire the abundance of native plant life.
Cyprus is distinguished for its temperate climate, the healthiest in the world, and its clear sea and refreshing air which help maintain good health.
Summer is a season of high temperatures with almost cloudless skies preceded by short spring and followed by short autumn seasons giving the opportunity to enjoy the long clean beaches almost all year round. During winter snowfall whitens Troodos Mountains whilst the sun rarely stops shining and temperatures reach around 19°C on the island’s coastal areas. The salt lakes visited and habituated by migratory birds, mostly pink flamingos, are one of the most beautiful attractions during this period.
The island’s environment is one of the purest in the world thanks to the virgin green forests and natural wonders, setting it free from pollution and other ill-effects of industrialised countries.
Legal & Economics
The legal system is based on the English and the European Law. Cyprus is a member of the United Nations, European Union and the Eurozone, the Commonwealth and the Council of Europe. Cyprus has been rated the country lowest for crime in the European Union. It is a pretty safe place to live and do business due to its small size and the distinctive attribute of the locals.
The Cyprus service-based economy is small, diversified, and prosperous. With a moderate industry, a healthy service sector and a rapid growth in exports of agricultural and manufactured products as well as tourism and construction, the standard of living is set high among other developed countries.
Cyprus has a presidential governmental system, in which the President, with executive powers, is directly elected by the people and serves a five-year term. The House of Representatives is the legislative body and consists of 56 elected members, who also serve a five-year term.
Cyprus invested in improving infrastructure including highway upgrades, a new bus system and inter-city connections, bicycle lanes, a number of new marinas, as well as two brand new international airports, in Larnaca and Pafos and the Limassol and Larnaca multi-purpose ports. Cyprus has extremely well developed infrastructure, particularly set and focused on professional services, i.e. financial sector, onshore and offshore business activities to aid investments.
The state universities as well as the private educational institutions in Cyprus maintain consistently high academic standards. United Kingdom universities have been established on the island whereas higher education institutions in Cyprus have always been particularly responsive to international collaborations and partnerships. Furthermore, the widespread use of English and the safe environment attract foreign students worldwide.
Main advantages of the Cyprus tax system:
- Income tax rate in Cyprus is only 12.5%.
- Excellent banking and insurance services.
- No Immovable Property Tax or Inheritance Tax.
- No transfer fees if the transfer relates to a transaction that has been subjected to V.A.T. Where a transaction has not been subjected to V.A.T., the legislation provides an exemption of 50% of the transfer fees.
- Immovable property is freehold and the V.A.T. on the first residence is only 5%.
- One of the lowest V.A.T. rates, 19%, in the European Union on everyday purchases.
- Extensive double tax treaty network leading to the avoidance of double taxation.
- Duty Free Privileges on specific items.