Digilaw Blog

5 Reasons to set up the IT company on Cyprus

When it comes to selecting a jurisdiction to perform IP activities, IT businesses must find a jurisdiction that matches their companies’ needs, while at the same time protecting its IP.

So, we are glad to present You five good reasons to relocate Your business to Cyprus:

1) Location and reputation
Cyprus is the EU member strategically positioned between Europe, Africa and the Middle East allowing easy access to a broad range of countries. Thus, the jurisdiction is still very interesting for most investors.
Cyprus offers a high quality of life, low crime rates, various options for private healthcare and education and a low cost of living in comparison with other EU countries.
Forming Your IT company in Cyprus gives You visa-free access to the European labor market, as well as fast & easy access to the international talent pool.

2) Excellent regulatory structure
Cyprus is in full compliance with the EU and international laws & regulations:
✅ Can provide strong protection for investment & intellectual property (IP);
✅ Simple company registration;
✅ Transparency and reliability in best business practices.

3) IP box regime
Cyprus IP companies can achieve an effective tax rate up to 2.5% on qualifying profits earned from exploiting qualifying IP. Capital gains arising from the disposal of the qualifying IP are fully exempt from tax.

4) Personal tax incentives
Tax residents in Cyprus can benefit from a 50% deduction on their personal income tax for a period of 10 years taking into account certain conditions.
Non-domiciled individuals that become Cyprus tax residents can enjoy tax exemptions on dividends and interests for a period of 17 years.
Startup visa plan for talented entrepreneurs from countries outside the European Union (EU) and outside the European Economic Area (EEA), for individuals or a team.
Different regimes for fast obtaining of residency in Cyprus.

5) Fast-developing IT ecosystem
Cyprus is striving to become an Innovation Hub in the Easter-Mediterranean region with the development of a supportive ecosystem. According to the StartupBlink Global Startup Ecosystem Index 2022, three major cities in Cyprus at once ranked higher than in previous years. Now Paphos, Limassol and Nicosia are in the TOP 1000 best cities for start-ups in the world.

Cyprus offers a large range of highly educated, trained and experienced software development workforce that is ready to be employed and can assist a company relocating in Cyprus to set up their offices and create real economic substance that is a key issue.