Cyprus

QUICK FACTS

Location : Middle East, island in the Mediterranean Sea, south of Turkey; note – Cyprus views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East, or both

Capital : Nicosia

Total Area : 9,251 sq km (of which 3,355 sq km are in north Cyprus)

Population : 1,205,575 (July 2016)

Population distribution: population concentrated in central Nicosia and in the major cities of the south: Paphos, Limassol, and Larnaca

Languages : Greek (official) 80.9%, Turkish (official) 0.2%, English 4.1%, Romanian 2.9%, Russian 2.5%, Bulgarian 2.2%, Arabic 1.2%, Filipino 1.1%, other 4.3%, unspecified 0.6%

Religion : Orthodox Christian 89.1%, Roman Catholic 2.9%, Protestant/Anglican 2%, Muslim 1.8%, Buddhist 1%, other (includes Maronite, Armenian Church, Hindu) 1.4%, unknown 1.1%, none/atheist 0.6%

Ethnic groups : Greek 98.8%, other 1% (includes Maronite, Armenian, Turkish-Cypriot), unspecified 0.2%

Government type : Republic of Cyprus – presidential democracy; Turkish Republic of Northern Cyprus (self-declared) – semi-presidential democracy

GDP – per capita : $34,400 (2016 est.)

Climate : temperate; Mediterranean with hot, dry summers and cool winters

Legal system : mixed legal system of English common law and civil law with European law supremacy

Unemployment rate : 11.8% (2016 est.)

Visa free countries : 159 (2016)

Overview of the country – geographical Situation, accessibility

Cyprus flag

Land where the sun stays all year round, Cyprus is an island of the Mediterranean Sea, strategically located at the eastern portion of Europe. Rich in copper mines and pine and cedar forests, this country, called “The Island of Love”, offers a variety of rural, mountainous as well as marine landscapes.

The island has 2 international airports, Larcana in the southern part, and Ercan in the northern part.

Rate of tax system on the physical persons living in the country

Since its accession to the European Union in 2004, Cyprus is one of the most attractive jurisdictions in Europe for business. Since 2012, the Cyprus economy has recovered dramatically, due to the resilience of key sectors of its economy, specifically financial services, tourism and business services.

The corporate tax rate is 12.5%, which is one of the lowest rates. Prior deficits may be carried forward for an unlimited period of time. If the company is used as a “Holding Company”, it is not taxed. There is also an exemption from capital gains on the sale of real estate shares.

A Personal Services Company (PSC) allows those living outside their country of citizenship to benefit from tax planning and reduce burdens if they are not current residents of their country of origin and if they have to travel often and make invoices abroad for business purposes.

Physical and legal Security of the country

Cyprus is considered a safe and quiet destination and the hospitality of its people is legendary.

The political situation on the island of Cyprus can be described as stable. Being cut in 2, the north of the island is occupied by Turkey. So it is in the south that the tourists stay, as well as the new arrivals.

Delinquency remains very low, but the basic precautions are imposed as everywhere else in the world.

As part of the European Union since 2004, Cyprus is legally secure and attempts to standardize its legal practices in relation to the EU.

Programs of economic investments set up by the government of the country host, with new residents

The Citizenship Program of Cyprus is ranked 2nd in the world, according to the World Citizenship Program Index (2015). The country’s economic citizenship arrangement offers many advantages, such as free movement in EU countries, an investment rather than a gift of fortune to obtain citizenship, consideration of other family members, investments or transfers of funds facilitated to any of the member countries of the EU, no physical residence requirement before or after obtaining nationality, favorable tax system, strategic position between the 3 continents, Europe, Africa and Asia.

Quality of Life

Cyprus enjoys a Mediterranean climate. The short spring that begins at the end of March fills the island with flowers and the summer that settles in May, extends until the end of October. Winters are temperate.

At the same level, real estate has a lower cost than most other European countries.

Driving is on the left.

Countries for which visas are not necessary any more

All countries of the European Union open themselves to Cypriot nationals without the need for a visa.