ABOUT CYPRUS

Amongst all the countries in Europe, Cyprus, officially the Republic of Cyprus, is an island nation located in the Eastern Mediterranean Sea. It is a major tourist destination and a growing business hub, known for its strategic geographical position at the crossroads of Europe, Asia, and Africa, its rich history, beautiful beaches, and a warm climate. The capital of Cyprus is Nicosia, which is its largest and most populated city, serving as the country’s primary economic, cultural, and administrative center. According to the report of the World Bank, Cyprus has been classified as a High-Income Nation. The currency of Cyprus is the Euro (EUR), which it adopted in 2008. As of today’s exchange rates (June 2025), 1 Euro is approximately 89.85 Indian Rupees. The population of Cyprus is approximately 1.28 million in 2024. As an island nation, it shares maritime borders with Turkey, Greece, Syria, Lebanon, Israel, and Egypt. The official languages of the country are Greek and Turkish. English is very widely spoken and understood, especially in business, tourism, and urban areas. The majority of the population practices Orthodox Christianity, with a significant Muslim minority and smaller communities of other faiths. Currently, Cyprus has two international airports: Larnaca International Airport (LCA) and Paphos International Airport (PFO), with Larnaca being the primary international gateway, offering excellent air connectivity. As an island nation heavily reliant on trade and tourism, Cyprus has several crucial commercial seaports, including Limassol Port and Larnaca Port, which are vital for handling cargo and passenger traffic.

The standard corporate income tax rate in Cyprus is 12.5%, one of the lowest in the European Union, making it a very attractive jurisdiction for international businesses. Cyprus also offers several highly beneficial tax incentives to attract foreign investment. These include a generous Intellectual Property (IP) Box regime, which allows for an effective tax rate of 2.5% on qualifying IP income, and non-domicile tax status for individuals, providing significant tax exemptions on dividend and interest income. Additionally, there are no capital gains taxes on the sale of shares, and stamp duty on contracts for loan facilities can be capped. Opesh Group of companies will be helping you in the completing Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Cyprus is a relatively straightforward and efficient process, supported by its transparent legal system, which is based on English Common Law, and a business-friendly regulatory environment. The Cyprus Investment Promotion Agency (Invest Cyprus) is the primary government body promoting and assisting foreign direct investment. A foreign investor who is planning to start his business in Cyprus can form various company types, with the most common being a Private Limited Company by Shares. A Private Limited Company formed and registered in Cyprus allows the foreign investors to own 100% of the company, and there is no minimum share capital requirement (though a nominal amount like €1,000 is typical for practical purposes). Cyprus’s legal framework is aligned with EU directives, offering a secure and predictable environment for businesses.

In Case an investor is planning to establish a Limited Company in Cyprus or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Cyprus and we will also guide you about how to follow the procedure while formulating your company in Cyprus.

Types of Business which can be started in Cyprus-

• Financial Services: Cyprus is a well-established international financial center. Opportunities are vast in investment funds, asset management, forex brokerage, payment services, and FinTech, leveraging its EU membership and favorable regulatory environment.
• Shipping & Maritime: With a significant shipping registry and a strategic location, Cyprus is a global maritime hub. Opportunities exist in ship management, ship ownership, maritime services, and related logistics.
• Tourism & Hospitality: A primary economic driver, with millions of tourists annually. Opportunities are in developing luxury resorts, specialized tourism (e.g., medical tourism, sports tourism, agritourism), and related services like hospitality management.
• Real Estate & Property Development: Strong demand for residential and commercial properties, particularly from international investors. Opportunities in property development, construction, and real estate services.
• Energy (Oil & Gas): Significant natural gas discoveries in its Exclusive Economic Zone (EEZ) offer long-term opportunities in gas exploration, extraction, related infrastructure, and energy services.
• Information & Communication Technologies (ICT): A rapidly growing sector, attracting tech companies and startups. Opportunities include software development, cybersecurity, FinTech, and IT services, supported by a skilled workforce and digital infrastructure.
• Professional Services: As a major business hub, there is high demand for legal, accounting, auditing, consulting, and tax advisory services, especially for international businesses.

Advantages of Starting Business in Cyprus-

• Low Corporate Tax Rate: The 12.5% corporate income tax rate is one of the most competitive in the EU, making it very attractive for businesses.
• Strategic Location: Situated at the crossroads of three continents (Europe, Asia, Africa), offering a strategic gateway for trade and investment.
• EU & Eurozone Membership: Provides full access to the vast European Union single market and the stability of the Euro currency.
• Highly Skilled & English-Speaking Workforce: A well-educated and multilingual labor force, with English widely spoken in business.
• Robust Legal System: Based on English Common Law, ensuring transparency, predictability, and strong protection for investments.
• Favorable Regulatory Environment: A supportive government and regulatory framework designed to attract and facilitate foreign investment.
• High Quality of Life: Excellent climate, healthcare, education, and low crime rates, making it an attractive place for international talent.

Business Opportunities for Indians in Cyprus-

There are excellent business opportunities in Cyprus for new investors who are planning to start their business abroad. Cyprus’s advantageous tax regime, EU membership, and strategic location make it a compelling proposition for Indian companies looking to expand their European footprint or access markets in the Middle East and Africa. Indian investors with strengths in IT services (especially software development, FinTech solutions), financial services (setting up investment funds, wealth management), pharmaceuticals (distribution, regional HQ), tourism & hospitality (hotel investment, specialized tours), and education services, can find significant avenues for investment, partnerships, and market expansion.

Imports & Exports-

Many goods are imported and exported from Cyprus. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Cyprus:

• Pharmaceutical products
• Mineral fuels (especially refined petroleum products)
• Potatoes and other agricultural products
• Cypriot cheeses (e.g., Halloumi)
• Citrus fruits
• Waste and scrap metals
• Cement

Major items which are imported in Cyprus:

• Mineral fuels and oils (crude and refined)
• Machinery and mechanical appliances
• Electrical machinery and equipment
• Vehicles
• Pharmaceutical products
• Iron and steel
• Plastics and articles thereof
• Foodstuffs

Manufacturing-

Manufacturing in Cyprus is relatively modest compared to its services sector but focuses on specialized areas. Opportunities exist in food and beverage processing (e.g., dairy products, wine, olive oil), pharmaceuticals, metal products, and construction materials. There is a growing emphasis on high-tech manufacturing and value-added products for export.

Mining-

The mining business in Cyprus is very limited in scale in modern times. Historically, copper mining was significant (the name ‘Cyprus’ is derived from ‘copper’). Currently, primary mining activities involve the extraction of non-metallic minerals like bentonite, gypsum, aggregates (sand, gravel, crushed stone), and clay for construction and industrial purposes. There are no significant active operations for valuable metallic minerals. Therefore, large-scale investment opportunities in conventional mining are rare.

Major Indian companies which are currently working in Cyprus-

While Cyprus may not host a large number of major Indian manufacturing units, it is increasingly attractive to Indian companies for its financial services, IT, and strategic location advantages.

• IT/Software Services: A growing number of Indian IT and software development companies, or their subsidiaries, have established a presence or work with Cypriot firms, leveraging the talent pool and access to the EU market.

• Financial Services: Indian businesses and high-net-worth individuals utilize Cypriot financial services for investment funds, wealth management, and corporate structuring due to the favorable tax regime.

• Pharmaceuticals: Indian pharmaceutical products are distributed in the Cypriot market through local partnerships.

• Education Sector: Due to a growing number of Indian students in Cypriot universities, related educational service providers from India may have a presence.

• Trading & Consulting Firms: Various Indian trading companies and consulting firms have established offices in Cyprus to facilitate their European and regional operations.

• GDP = $35.0 billion (nominal, 2024 est.)

• GDP Growth = 3.0% (2024 est.), 2.8% (2025 forecast by IMF)

• Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but Cyprus is consistently recognized for its improving business environment and investor-friendly policies.

• GDP per Capita = $27,344 (nominal, 2024 est.)

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