Cyprus as an Investment Destination
for Non-EU Citizens
Cyprus is not just refreshing cocktails and sunshine. Thanks to its strategic location, favorable tax conditions and developed financial services sector, the island attracts investors from all over the world.
Let’s start with a few numbers and the reasons why Cyprus is considered a tax haven:
12.5% – the amount of corporate income tax with tax residence in Cyprus, it covers income from all sources, both domestic and foreign.
19% – VAT.
0% – capital gains tax.
More than 60 – the number of countries that have concluded double taxation treaties with Cyprus.
60-day Rule – the ability to reduce the required time spent on the island from 183 days to 60 days in order to obtain tax resident status.
Another important factor attracting non-EU investors to Cyprus is the favorable immigration law. Cyprus offers several pathways for legal residence on the island, one of the popular ways is the Cyprus Investment Programme, which allows non-EU citizens to obtain the right of permanent residence or even citizenship by investing in real estate or business on the island. The application process is quick (usually 2 months) and involves the whole family. Investing in Cyprus can involve a variety of economic sectors. The real estate market is considered one of the most lucrative, it is attractive for investors, both due to the growing demand for tourist locations and permanent residences. Investments in apartments, houses, villas or commercial real estate can bring stable rental returns or increase property value over the long term.
Tourism, a developed financial services sector including banking, asset management, legal and advisory services. Cyprus is also developing as a technology hub, attracting IT companies, start-ups and high-tech companies. In recent years, Cyprus has been intensively developing the renewable energy sector, with particular emphasis on solar and wind energy. In summary, Cyprus has the potential to become a valuable part of the investment portfolio. It offers security, diverse investment opportunities and beautiful weather.