The United Kingdom's decision to leave the European Union, commonly referred to as Brexit, has triggered a wave of uncertainty and change in the business landscape. As UK businesses continue to grapple with new trade regulations and evolving market dynamics, many are exploring alternative options to maintain their foothold in the European market. One such option gaining popularity is relocating to Cyprus. In this article, we will delve into the reasons why UK citizens should consider relocating their businesses to Cyprus, particularly after Brexit.
One of the primary motivations for UK businesses to consider Cyprus as their new base of operations is its strategic location within the European Union. Cyprus is a member of the EU, which means that businesses established there have direct access to the EU single market. This access allows UK companies to continue trading with EU member states without the complications and trade barriers that have emerged post-Brexit.
Furthermore, Cyprus offers a stable and predictable business environment, with a robust legal system and a well-established regulatory framework. This stability can be reassuring for UK businesses looking to navigate the uncertainties of the post-Brexit landscape.
In addition, Cyprus boasts one of the most attractive tax regimes in Europe, making it an appealing destination for businesses looking to optimize their tax liabilities. The country's corporate tax rate of 12.5% is one of the lowest in the EU. Additionally, Cyprus has a network of double tax treaties with over 60 countries, including the UK, which can help businesses avoid double taxation on their income.
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 UK businesses 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. Employment of UK nationals and Non-European Union nationals is permitted as long as at least one support staff member is of a Cypriot or a 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. UK nationals and other 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.
Lastly, another compelling reason is that Cyprus is known for its English-friendly environment, which eases the transition for UK citizens relocating their businesses. English is widely spoken and used in business transactions, legal documentation, and education, reducing language barriers and facilitating seamless operations.
In summary, the uncertainties brought about by Brexit have prompted many UK businesses to explore new horizons, and Cyprus is emerging as an attractive destination for relocation. By choosing Cyprus, UK businesses can not only mitigate the challenges posed by Brexit but also position themselves for growth and success in the European market.
Every business relocation requires meticulous planning and thoughtful deliberation. At George C. Stylianou Law Office, we stand ready to provide professional assistance, ensuring a seamless transition. Our deep knowledge of the intricacies of the Cypriot legal system, coupled with our team of skilled legal team, guarantees the security of your company. We methodically craft a fully compliant action plan tailored to your needs, assuring you of a smooth transition.
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