Lebanese entrepreneurs and business owners have long displayed remarkable resilience in the face of challenging economic conditions, political instability, and unforeseen crises. In recent years, many Lebanese citizens have explored opportunities to relocate their businesses in search of stability, growth, and international market access. One destination that has emerged as an attractive option is Cyprus. In this article, we will explore why Lebanese citizens should consider relocating their businesses to Cyprus.
1. Strategic Location
Cyprus has a strategic position, which is the ideal gateway for businesses looking to access markets in the European Union, the Middle East, and North Africa. Lebanese businesses can benefit from Cyprus's proximity to major economic hubs, allowing for efficient trade and investment opportunities.
2. Investment Protection
Cyprus provides a secure environment for foreign investors. Lebanese corporations relocating to Cyprus can benefit from the country's extensive network of bilateral investment treaties (BITs) and its membership in international organizations like the World Trade Organization (WTO). These agreements offer protection against expropriation and ensure that investments are treated fairly and equitably.
3. Hiring and Workforce
Employment of Lebanese and other non EU nationals is permitted, as long as at least one support staff member is of Cypriot or European nationality, and as long as the non-EU employees and their employers have signed a contract for a minimum duration of 2 years, designating them as essential personnel. The required minimum gross monthly salary is €2500 for each non-EU employee.
The residence and employment permit is initially granted for a period of 2 years, with the capability of renewal.
4. Cyprus Citizenship by Investment Program
Third Country nationals employed by a Cyprus International Business Company (company with foreign interests) can submit an application for naturalization after 5 years of residency and employment in the republic, instead of 7 years.
5. Tax Advantages
One of the most significant draws for Lebanese businesses is Cyprus's favorable tax regime. The corporate tax rate is currently set at 12.5%, making it one of the lowest in Europe. Additionally, Cyprus has an extensive network of double taxation treaties, minimizing the risk of double taxation and offering potential tax benefits for foreign investors.
If you are interested as an individual to pay lower tax rates, please consider reading the following page on “Cyprus Tax Residency”.
6. Legal Structure
As of October 15th 2021, the Cyprus Council of Ministers has approved a strategy that has actively worked to simplify regulations, reduce bureaucracy, and encourage foreign citizens and foreign businesses to relocate to Cyprus. The process of setting up a Cyprus International Business Company (company with foreign interests) in Cyprus is straightforward. The regulatory framework is transparent and efficient allowing 100% foreign ownership and thus making it easier for Lebanese corporations to establish and operate their businesses. After the deposit of €200,000 by the ultimate beneficial owner (UBO) in an account held by the company in a credit institution licensed by the Central Bank, incorporating a Cyprus International Business Company can take between an estimated 7 to 10 business days.
7. Political Stability Compared to the political instability and uncertainty that Lebanon has experienced in recent years, Cyprus offers a relatively stable and predictable political environment. This stability is crucial for businesses seeking a secure location for long-term growth and investment.
In summary, relocating a business is a significant decision that requires careful planning and consideration of various factors. For Lebanese citizens seeking stability, growth, and access to international markets, Cyprus presents a compelling opportunity. It is of vital importance to approach any business relocation with careful planning and consideration. As such, our team at George C. Stylianou Law Office which specializes in international operations, is perfectly positioned to assist you and ensure that this transition is as smooth as possible. Our expertise in the inner working of the Cypriot legal system in combination with our team of legal experts, ensures that your company is in safe hands, as we carefully formulate a plan of action that is fully compliant with the relevant regulations.
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