Introduction

With inviting beaches and breathtaking mountain trails that lie scattered throughout the island it is easy to understand why this small island is the birthplace of Aphrodite the Greek goddess of beauty.

Cyprus is a Mediterranean island at the crossroads of Asia, Europe and Africa. A magnificent place where there’s always a new world to discover. Where East meets West and a new experience awaits for you under the sun every day. A place where the international elite prefer as their permanent or holiday residence, where Championship Golf courses, inviting beaches, and breathtaking mountain trails lie around luxurious surroundings.

Cypriot Hospitality

Cypriot hospitality is renowned. A blend of all the best that the surrounding nations of Asia, Europe and Africa have to offer, Cypriots are open and welcoming to all. More than just a friendly smile, Cypriots have a warm and loving nature that really impresses upon visitors from their first step on to the island.

Life in Cyprus can best be described as carefree. In the various shops, tavernas, cafes and bars scattered throughout the island the atmosphere is relaxed and welcoming.

Cyprus people will always make you feel at home and will try their best to assist you no matter what the situation. Most of the people in Cyprus speak English and Greek and due to the international nature of the island many also speak a third or fourth language. Living in Cyprus brings with it the joy of living amongst some of the friendliest people on earth!

Standard of Living

With major infrastructure and residential development, modern facilities, a high standard of medical services and reputable schools, Cyprus offers its visitors and residents a European level standard of living. Cyprus has one of the highest university graduate population rate in the world and provides for an excellent education since many schools are based on the United Kingdom’s education structure. It is therefore no surprise that a very large percentage of Cypriot study at the finest universities of the UK.

The annual per capita income is about US$30,000. The overall cost of living averages about 1/3 to 2/3 of most parts of Europe, Japan or the USA.

Language

The official language is Greek. Most of the locals, however speak English, whilst other languages such as German, French and Russian are widely spoken within the island tourist trade and it is very easy to find someone to communicate. All street signs, directions and shop signs are written in English.

Lifestyle

Such a small island with so many things to offer, Cyprus is the place to really enjoy your life in a friendly international environment that warms your heart. Cyprus offers a multitude of lifestyles for all ages.

For the sports enthusiasts there are unlimited options to enjoy from championship golf courses to tennis courts, fitness gyms and football fields. In the summer time you can enjoy a variety of water sports and during the winter months snow skiing facilities are available at the Troodos mountain resorts. For the more relaxing types there is a choice of luxurious award winning health spas and beauty centers either within the five star hotels and resorts or on private premises.

Since Cyprus is an island it is of course tied with living near the sea. A paradise for water lovers with the sea literally a 5 minute drive from most places in the island. You can enjoy swimming, sunbathing and a variety of water sports including sailing and windsurfing at Blue flagged sandy beaches all over the island.

International yacht lovers will love the island because of its great yachting infrastructure and other amenities. Cyprus is a great place to dock your yacht since it is situated in the Mediterranean Sea which studies have shown that it is the safest sea in the world bordered by 3 continents and 22 countries!

Adventurers will enjoy the beautiful natural trails situated all over the country side. The scenic views of the many traditional villages are great places to explore. In the Troodos Mountains, the temperature regularly falls below freezing near the mountaintops, and it is cold enough for snow to fall between December and March. Winter sports can be enjoyed on Mount Olympus - the highest peak in Cyprus - the best time for skiing being in February.

With the short distances on the island, you can do so many things  in just one day. In fact, Cyprus is one of only a few places in the world where you can go skiing in the morning, and then an hour later be lying on the beach topping up your sun tan!

With so many choices, Cyprus really has it all.

Food and Drink

With emphasis on fresh local ingredients, a mix of herbs and spices and a little olive oil, Cypriot food is essentially Mediterranean, with a blend of the best that the neighboring nation’s cuisines have to offer.

Eating out is part of the entertainment in Cyprus. Due to its multinational society restaurants offer a variety of tastes from international cuisine such as Chinese, French, Italian, Indian, Lebanese, Japanese, Russian, Mexican and others. Everything prepared at the highest possible standard. The favorite of all are of course the local taverns offering greek meze dishes and local music.

Nightclubs with good live music played by famous dj’s and other musicians as well as a variety of bars are some of the entertainment choices that can be found in all towns and tourist resorts.

Low Crime Rate

The crime rate on the island is one of the lowest in the European Union and the lowest in the Mediterranean. It is worth pointing out that Cypriot crime rate is only one tenth of the average rate of the other European countries and only 6% of the crime rate in the United Kingdom.

There are no ghettos or dangerous neighborhoods and you can freely and casually stroll through any place at any time. The local population is friendly and honest offering a feeling of security.

Culture

Cyprus has a very long history dating back to the prehistoric ages. A visit to Choirokoitia, one of the best preserved sites of a prehistoric settlement found in the Eastern Mediterranean can give you a vivid representation of what life was like at the dawn of civilization.

Cyprus history is intertwined with that of the greatest nations in the world. From the Greek Empire to the Roman Empire, from Richard the Lionheart and the crusaders evidence of their passage can be seen all around the island. You can visit the exquisite floor mosaics of the Roman villas depicting scenes from mythology, arguably the best in the eastern Mediterranean and the impressive underground Tombs of the Kings nearby, carved out of solid rock and decorated with Doric pillars. Or enjoy an ancient Greek play performed in a Roman theatre with the most spectacular view on a cliff overlooking the sea.

Many fine examples of Byzantine art have survived on the island, which you can see for yourself in Cyprus’ painted churches with their colourful frescoes, ten of which have been put on the UNESCO World Heritage List.

More importantly this great history blends seamlessly with the modern Cypriot lifestyle were modern cafes, restaurant and bars are placed next to medieval castles giving a sense of true identity and soul to Cypriot daily life.

International Relations

Cyprus has developed and maintains very good relations with all countries, some of which have conflicting interests, and has because of its strategic geographic position has been the venue place of important events and a bridge of communication.

Cyprus accession to European Union on the 1st May 2004 has greatly benefited the country. The benefits that stem through Cyprus EU membership are substantial since political, economic and social stability and safety are secured. During the second half of 2012 Cyprus will take over the Presidency of the European Union. This event is one of the most historic and important in the country’s history since it solidifies Cyprus European identity.

Cyprus is also a member of the United Nations, the Council of Europe, the British Commonwealth and of the Non-Aligned Movement.

Climate & Temperature

340 days of sunshine say it all! Cyprus is in the Mediterranean climate zone, and so benefits from short mild winters and long dry & warm summers. The island is famed for its sunshine and its long swimming season. If you're looking for sunshine and all year round warmth, Cyprus is the place to be.

On average, the coolest month is February.

The maximum average precipitation occurs in December.

Medical Services & Legal System

The medical services in Cyprus are of the highest standard. All hospitals, private clinics and medical centers are equipped with the latest facilities. The latest technology and operating techniques are standard, with heart bypass surgery and kidney transplantation now routine in hospitals. Moreover many reputable specialists from all around the world fly on a weekly basis to Cypriot medical centers as they have special agreements.

Generally speaking doctor fees are quite low compared to other European countries. Low cost international private medical insurance is available for non-Cypriot people living in Cyprus, through our trusted associates.

The legal system in Cyprus is based on the Anglo-Saxon legal system.

The Land Registry Department in Cyprus is one of the most advanced and reliable systems in the world. All contracts and other paper work can be drawn in English, which is widely spoken among Cypriots. Purchasers of property in Cyprus will therefore be far more secure with regard to their title deeds, than they might be in another country.

Furthermore legal fees/costs are reasonable and lower than in other European countries.

Transport & Telecommunications

Due to its geographic location Cyprus acts as a transit hub for many international airlines as it connect the East with the West. Moreover the same is evident in the shipping industry as the ports of Cyprus are basically the ports of the border of Europe.

Inland communication is very easy. The distances between cities are very short which provide for safe and comfortable travel between cities. Furthermore the whole island is covered by a good network of modern roads and highways which are constantly extended and upgraded. Driving is on the left. There is public transport service with regular connections between cities, with scheduled taxi services and comfortable coaches. Private taxis and rental cars are readily available.

Cyprus telecommunications are among the best in the world and this proved an important factor in establishing the island as an offshore business centre. The very fast and not government controlled internet access make Cyprus ideal for offshore companies and regional multinational headquarters.

• The time zone is GMT +2
• The Electric current is 240 Volts
• Driving is on the left

The Cyprus Tax System at a Glance

On the 1st of May 2004 Cyprus officially joined the European Union. By doing so Cyprus has become an even more important regional business centre as well as an international communications and transportation hub.

Even before the accession to the European Union, the Cypriot Government understood the challenges faced upon Cyprus in this dynamic, globalised environment and has taken significant steps towards helping Cyprus become an even bigger regional player. This effective strategy has led Cyprus to ratify over 40 double taxation treaties, some of which are with the United States of America, United Kingdom, Canada, Germany, Austria, Italy, France, Denmark, Norway, Russia, Sweden, China, Kuwait. Furthermore this governmental approach has helped Cyprus strengthen its internationalized economy and multinational/multicultural society through a simplified application process for obtaining residence permits for foreigners purchasing property within Cyprus. Accordingly a resident of Cyprus is also a resident of the Europe Union and enjoys all the benefits that this entails.

Another significant point which exemplifies the authorities’ understanding of the business environment in the 21st century is that companies registered in Cyprus can enjoy European Union’s lowest corporate tax rate of 10% as well as operate in a stable economic environment with a highly educated work force.

The main benefits of the tax system are as follows:

• Cyprus’ current tax system is in full compliance with the EU and OECD.
• Taxable profits of all Cypriot companies are taxed at the rate of 10%, the lowest in the EU.
• Dividend income received in Cyprus from a foreign corporation is wholly exempt from taxes in Cyprus (under certain conditions).
• Extensive double tax treaty network including China which avoids double taxation.
• Gains from the disposal of securities are tax exempt.
• Profits earned from a permanent establishment abroad are fully exempt from corporation tax (under certain conditions).
• Interest income earned from trading activities, including interest which is closely related with trading activities, is subject to income tax at 10%.
• No withholding tax on dividends and interest paid to non-residents of Cyprus. Also no withholding tax on royalties arising from sources outside Cyprus.
• Group relief provisions for companies resident in Cyprus.
• Capital gains are not subject to tax, except on sale of immovable property situated in Cyprus.

The Cyprus Holding Company

Cyprus has always been an ideal location for holding companies. Cyprus is most commonly used as an intermediate holding company location in the following circumstances:

• For international or domestic groups investing outside Cyprus, aiming at tax exempt dividend income streams.
• To hold subsidiaries that have scope for significant capital appreciation and with the intention of being disposed in the future, as such disposals are not taxable in Cyprus.
• To benefit from the favourable withholding tax provisions of the Cyprus extensive double tax treaties network.
• Where it may be important to achieve a tax free unwind of the holding company when necessary.
• To simplify an exit route under Cyprus tax laws which allows payment of dividend, interest and royalties (in most cases) without payment of withholding tax.
• To establish a group finance company in Cyprus which will provide finance to the rest of the group.
• To hold intellectual property and license such property to third parties and other group companies.