In a continent where filled with fiscal and bureaucratic pressure, it is a haven for SMEs that are coming to Europe.
Being a popular country for tourists in the Mediterranean and Europe as a whole, it boasts global shipping capabilities, thriving real estate business, and tourist-friendly policies for foreigners.
In this guide, we will give you a very descriptive highlight of the business opportunities available in Cyprus. If you read and understand this article, you’ll have no trouble moving to Cyprus to start a business.
Economic overview
Cyprus is an open, free-market, and service-based economy. Although some manufacturing, processing, and refining are done in the country, the service industry is the biggest in this EU country.
The Cypriots are one of the most prosperous people in the Mediterranean region. Its educated English-speaking population, affordable cost of living, advanced telecommunications, reliable infrastructure, and good government makes it an ideal business location for foreign investors.
The Country uses its geographical position to act as a bridge between the West and East trading routes.
The economic condition of the country is dominated by a clear division of the country into two regions, with the southern region controlled by the Cyprus Government and the northern region in the Turkish Cypriot-administered area.
The Cypriot economy relies on the agricultural sector and government service. These two sectors employ more than half of the country’s workforce. While the tourism sector also contributes to a significant amount of capital.
Cyprus is classified as a high-income country, with a per capita income of CY£9,477 (2004). This EU country is ranked 16th position worldwide in terms of per capita income.
The standard of living here is even higher than those of other developed countries in the European Union.
Cyprus also has the fourth-largest ship registry on Earth and has been liberalizing its trade regime by lowering tariffs, eliminating import quotas, and licenses.
Benefits of starting a business in Cyprus
Being a member state of the EU, Cyprus allows new companies to get global exposure by providing them with privileges and the international reputation they need to start and grow their business.
Starting a business in Europe may take a financial toll on you especially in the cost of production and taxes. You also enjoy lower tax rates as low as 12.5% of corporate tax net on profits.
If you plan on investing in Cyprus, these are some of the best reasons why you should.
- It has a dynamic tourism industry located between Europe, Africa, and Asia.
- It has the lowest crime rate which is an extra advantage for SMEs.
- State-of-the-art infrastructure and telecommunications network.
- Tax-free sale of shares.
- Tax-free dividends.
- Adoption of B2B transactions in and outside the EU with 0% VAT based on EU directives.
- Double taxation relief even without a double taxation treaty.
- Remote business setup.
Top business opportunities in Cyprus
The government of Cyprus is doing its best to attract international investments from entrepreneurs by collecting minor monetary and administrative efforts.
If you are looking for top business opportunities in this EU country, these three business industries have proven to be the most profitable in this EU country.
1. Tourism
With more than 4 million tourists coming in from all across the world every year, this European country is among the best places to start your EU tourism empire.
It is the 40th most popular travel destination in the world and a full member of The World Tourism Organization since 1975. Even cities like Nicosia, Limassol, Paphos, and Larnaca are among the most popular travel destinations on Earth.
Tourism occupies the dominant position of the Cyprus economy. It plays a significant role in the culture and development of the nation.
In 2006, tourism contributed 10.7% of Cyprus GDP which amounts to $5,445.0. In the same year, this increase led to the creation of more than 113,000 jobs.
2. Property rental business
Property Rental Business is another business with massive potentials in Cyprus. Individuals and companies need affordable property and space for their offices, events, or store, you can easily rent properties for quick profits.
Although this business requires huge startup capital, the returns it yields are pretty amazing. This industry creates a perfect long–term investment plan for foreigners that want to settle in this EU country.
If you plan on making money fast in Cyprus, then you should consider investing in this industry.
3. Aquaculture and poultry farming
The Agric sector is among the biggest sectors in Cyprus. There are still unexplored territories in fish and poultry farming which have proven to be very lucrative and hold massive income potentials for investors.
These two industries are low-hanging fruits for investors & entrepreneurs that want to invest in the nation’s agric sector.
Besides there’s a ban on the importation of life and solidified feathered creatures, this makes it easier for you to handle foreign competitors.
See, the country offers a lot of business potentials for SMEs in America, Asia, Africa, and other parts of Europe. If you plan to start a low-cost business in this EU country, then give us a call and we’ll help you with all you need to start your dream business in Cyprus.