Business IT Industry Growth

Published on February 21st, 2022 | by Bibhuranjan

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IT Industry Growth in Cyprus for the Last 10 Years

There’re many industries present in Cyprus. One of them is IT, which demonstrated impressive growth during the last decade. The service sector of the state dominates the market economy. It’s about 4/5 of their GDP. Today, we are going to speak about Cyprus online casinos and other companies, which lead their activity on the territory of this country.

Top Сompanies in Cyprus

The GDP growth for 2021 reached 5.4%, which is a good index. The state is known for the significant development of a wide range of industries (related to the service sector):

  • Shipping
  • IT
  • Finances
  • Tourism
  • Property
  • Food/beverages processing
  • Wood
  • Textiles
  • Metals
  • Light chemicals, etc.

Shipping

The number of companies in the country is over 263,000. By 2021, it’s possible to enumerate a few companies which managed to reach success. Here are the biggest companies in Cyprus by their market value:

  • Ozon
  • Polymetal International
  • Headhunter Group
  • Globaltrans Investment
  • Primecity Investment
  • Bank of Cyprus
  • Castor Maritime
  • Petrolia SE, etc.

Experts evaluate businesses in Cyprus, considering various criteria, including sales, number of employees, and other issues. As a result, it’s possible to observe a country’s statistics. Every year, the income of companies due to sales totals over 191,000,000,000 Euros. In terms of sales, the most outstanding firms are:

  • Carbo One LTD (with the largest sales of more than 5.2 billion Euros)
  • Holborn European Marketing Company LTD
  • Laiki Financial Services LTD
  • Tamoil Overseas LTD, etc.

Why Are Companies Based in Cyprus?

Cyprus is very attractive for many companies. In fact, it’s a perfect headquarters in the Eastern Mediterranean region. It has a special appeal for ICT firms, which work internationally. Multinational companies adore Cyprus for a few reasons:

  • Beneficial geolocation for representatives of various countries (between 3 continents)
  • Wonderful regulatory framework
  • Incentives and laws, which boost non-European businesses.

As a result, various companies can build and realize their business strategies in Cyprus. It’s especially advantageous for IT firms, which are often multinational. Struggling to attract more companies and helping them open their regional stores for the last 10 years, Cyprus is now planning to continue the trend. The country wants to focus on the incentives making them stronger and more attractive for companies from abroad.

Experts claim that Cyprus is known for its pro-business environment. The state is a member of the EU and at the same time gives access to the EMEA areas. Before the situation with Coronavirus, Cyprus demonstrated stable economic growth and development in many sectors. A sudden burst of Covid-19 didn’t manage to destroy the spirit of the country, and it continued developing, which allowed Cyprus to retain its position. As a result, even with Covid-19, the country is still attractive for investors. It’s important to mention that it’s very comfortable and easy to do business in Cyprus. The reasons are as follows:

  • Well-developed infrastructure
  • Modern telecommunications
  • Transparent regulations and laws
  • Strong financial & professional services
  • An impressive international experience
  • Beneficial tax regime (for both individuals and corporations)
  • Comfortable time zone for diverse businesses.

Besides, businesses can hire staff from various parts of the world – either from Cyprus (where there are many skilled people) or from Europe. Thanks to new laws, there are no complications with the transfer of specialists.

Cyprus is also advantageous in terms of prices. It’s quite cheap to relocate centers for strategic operations to Cyprus.

What Is the Best Business to Start in Cyprus?

Being so attractive for investors, Cyprus can offer various business models. We want to have a look at all the possible ones:

1. Home-based

2. Online (for instance, mobile casinos)

3. Low-investment (less than $5,000)

4. Easy businesses.

If you still can’t find any idea, look at our list with the most successful and attractive businesses, which can help get a fast profit in Cyprus:

BusinessReason to start in Cyprus
Travel agencyTraveling is one of the leading industries in the country. It’s very beneficial for both Cyprus and the neighboring countries. It’s enough to establish a small organization to offer services to nearby and outside guests.
Web design or software developmentSoftware companies in Cyprus can become really successful thanks to a great number of specialists working as freelancers or for definite companies. Depending on the type of activity (and products made), it’s required to choose the correct NACE code to register your business right.
Online casinoIt’s very comfortable to get a Cyprus license to establish an online gaming venue and offer exciting games to the gambling audience worldwide. Just note that it’s not allowed to do such a business within Cyprus. However, you can get an operating allowance and work for players from other countries. To get a license, it’s required to be approved by the Cyprus board and pay fees (either for a 1-year allowance or for a 2-year allowance). In addition, a local bank account is necessary to make certain all bets are made on its platform.

Mobile Casinos

Taxation Issue And Other Obligations

As we’ve mentioned, Cyprus is one of the beneficial places to do business. It’s also because of its taxation system. Observe the key types of taxes:

  • Corporate income tax (if organizations aren’t residents of the country, the tax is taken from a profit made by a local office)
  • Personal income tax (for non-residents, the tax is taken from the profit made out of the sources in Cyprus)
  • Dividend income tax (the majority of non-residents have a chance not to pay it)
  • VAT (value-added tax) – the standard rate is 19%. It might become lower depending on the provided products/services and reach 9%, 5%, or even zero.
  • Social insurance tax (employers and staff are to pay 8.3%)
  • Capital gain tax (applied to the property in Cyprus, which can’t be moved. Depending on the type of property, the rate can vary from 20% to 50%).

Along with taxes, there are other things which are obligatory for companies in Cyprus:

  • Local bank account
  • Yearly return in Turkish/Greek to the Registrar (it should include the information on capital, financial statement, shareholders, director, secretary, and real registered addresses)
  • Book of account (should be in every office and contain the information about financial affairs)
  • Yearly fee (350 Euros are to be paid by June 30; otherwise, there will be extra charges from 10% to 30% of the original amount).

FAQ

How many companies are based in Cyprus?

In accordance with the country statistics collected by HitHorizons, the total number of firms in Cyprus for November 2021 reached 263,346.

Can a foreigner establish a business in Cyprus?

Yes, it’s possible for a foreigner to start a business in Cyprus. The country has very welcoming regulations and laws, so both residents and non-residents can open their businesses. Before starting, it’s recommended to consider the leading industries and create a business plan. Then it’s vital to register your business right. There’re many local lawyers and organizations specialized in business registration, so everyone is free to contact them.

Who has the right to register a firm in Cyprus?

There Are certain requirements applied to businesses in Cyprus. Thus, it’s necessary for companies in the country to have at least one shareholder. If we speak about a private company, the number of shareholders should never exceed 50 people. It’s good news that the nationality of businessmen and shareholders doesn’t matter. Everyone is also free to use a convenient currency.

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About the Author

Editorial Officer, technofaq.org I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.



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