Companies around the world are in a constant need of growth. One way they achieve this growth is by expanding their businesses to other countries. The European Union is one of the best places to locate a business because of its large population, capable buyers, developed infrastructure, and available human capital. The challenge many international businesses face is that the European Union is known for its bureaucracy. It is also known for its expensive cities like Paris and London. In this article, we will look at a small country in Europe that has seen increased inflows of foreign companies. While many people have not heard about Cyprus, they have indeed used services by companies located in the country. For example, if you have ever created a forex trading account, there are chances that you used a company that operates in Cyprus.
Low Taxes
Taxes are things that companies love to hate. No company loves to pay taxes. In the European Union, the average corporate tax rate is more than 20%. This means that companies must pay 20% of their income to the government. There are also other taxes and payments that companies must pay. As such, many companies find themselves not making any money in the long-term. That is where Cyprus comes in. The small company is one of the well-known tax havens. Its official corporate tax rate is 12% and there are many ways of slashing the taxes.
Relatively affordable
As a company, you want a place where your cost of doing business is not very high. Unlike other European capitals, Cyprus is not very expensive. The cost of food, accommodation, and office space is among the lowest in the European Union. The benefit of registering a company there is that you will have higher margins and impressive access to the European Union. Your company will not pay any tariffs for goods its sells to the region.
Affordable Labour
As a company, you simply want to invest in a country where the cost of labour is not very high. With Cyprus, you get young people who are highly educated. You also get access to an international pool of workforce that is not very expensive. Many companies have moved to Cyprus for the single reason of affordable workforce.
Justice Department
The judiciary is one of the most overlooked things when people look at companies to invest in. The department is very important because companies need to be sure that cases will be adjudicated well. They also need to know that cases will not drag for years in the legal system. Cyprus is home to many internatiaonlly-recognized firms like Pagecorp Group that have been in the industry for decades. The courts are known for their independence as well.
Other Benefits
There are other benefits of registering a company in Cyprus. First, the country offers a good method of immigrating there. For example, it offers an investment passport that allows people to live there easily. Second, the country has advanced infrastructure, which reduce the cost of doing business. Third, unlike other European capitals, Cyprus is known for its sunny weather. In addition, the country is known for its strategic location.
