Cyprus has an excellent business infrastructure with good telecommunications, extremely well-equipped ports, a well-developed manufacturing infrastructure, and has a relatively sophisticated, European business environment.
Cyprus is third largest island in the Mediterranean (after the Italian islands of Sicily and Sardinia) and the world's 81st largest.
Cyprus measures 240 kilometres latitudinally and 100 km (62 mi) longitudinally, with Turkey 75 km (47 mi) to the north. Other neighbouring territories include Syria and Lebanon to the east (105 km and 108 km (67 mi), respectively), Israel 200 km (124 mi) to the southeast, Egypt 380 km (236 mi) to the south, and Greece to the west-northwest.
Cyprus became a member of the European Union in 2004 and it adopted the Euro as its currency on January 1, 2008, replacing the previously used Cypriot Pound.
Over the past two decades, Cyprus has completed a programme of reforming all its finance sector legislation in line with international best practice. Cyprus has signed 51 double taxation agreements that meet international exchange of information requirements. As a result of these agreements Cyprus is not considered to be a tax haven.
Cyprus is ranked among the High Potential- High Performers for FDI growth for 2007-2010 by UNCTAD. In 2012-2013, Cyprus ranks 58th among 144 economies.
The Cyprus Securities and Exchange Commission was established in accordance with section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001 as a public corporate body.
The Securities and Exchange Commission is administrated by a five member Board which is composed of the Chairman, the Vice-Chairman that provide their services at complete and exclusive employment. In addition, the Board is composed of three other members. In the Board's meetings a representative of the Governor of the Central Bank is represented, whom has the right to register subjects in the agenda, to participate in the discussions and to express opinions but deprived the right of vote.
The Cyprus Securities and Exchange Commission has the following responsibilities:
1. To supervise and control the operation of the Stock Exchange and the transactions carried out in the Stock Exchange.
2. To supervise and control the issuers of securities listed on the Stock Exchange, the Licensed Investment Services Companies as well as the Collective Investment Schemes.
3. To carry out inspections over companies, the securities of which are listed on the Stock Exchange, over brokers and brokerage firms, investment consultants, mutual fund management companies.
4. To request and collect information necessary for the exercise of its responsibilities, to demand in writing the provision of information from all natural or legal persons or organisations that are considered to be in a position to provide such information.
5. To grant operation licences to investment firms, including investment consultants, brokerage firms and brokers.
6. To recall these operation licences for special reasons, as it is more specifically determined in Regulations that are published in accordance with the Law of Establishment of the Cyprus Securities and Exchange Commission.
7. To impose administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to in any other legal or natural person whom fall under the provisions of the Stock Market legislation.
Cyprus's finance industry has benefited significantly from the country’s national policy of moving to the mainstream. Financial services is the fastest growing sector of the Cypriot economy and one of the most important employers of trained professional staff.
Tax related advantages:
A corporate tax rate of 12.5%, amongst the lowest in Europe.
Possibility of lower effective tax rates with proper planning.
Advantageous holding company regime.
Ideal tax setting for finance companies, royalty companies, permanent establishments, financial services licensed companies.
No additional taxes for shareholders of Cyprus companies.
No capital gains tax or net worth taxes (except on real estate situated in Cyprus).
No withholding taxes.
Access to EU Directives enacted into Cyprus Law.
Access to a wide and favourable double tax treaty network.
Participation exemption regime.
No specific substance requirements.
No strict transfer pricing rules.
Non-tax related advantages:
Cyprus has the necessary laws and infrastructure to allow clients to set up companies and trusts with substance on the island by setting up fully-flexed operational offices.
A legal system based on common law.
When compared to other EU jurisdictions, lower startup and operational costs.
Reasonable legal and financial professional services costs.
English is the recognised business language.
Multilingual banking & financial services sector.
Experienced professional services sector with a number of international players.
The people are known for their hospitality and are by and large bi-lingual.