The economy of Cyprus

The economy of Cyprus is a service-based economy with some light manufacturing. It is a high-income economy and has been a member of the European Union since 2004. The economy relies heavily on tourism, financial services, shipping, and real estate. The economy is highly dependent on foreign trade, with the main trading partners being the United Kingdom, Russia, Greece, and Germany. The country also has a significant agricultural sector, producing citrus fruits, potatoes, olives, and other vegetables. The country has a large number of natural resources, including copper, iron ore, and natural gas.

How does Cyprus regulate financial markets?

The Cyprus Securities and Exchange Commission (CySEC) is the financial regulatory body responsible for regulating the Cyprus financial markets. CySEC is responsible for the supervision and control of all investment services provided in the country, including the supervision of Cyprus Investment Firms (CIFs), the Cyprus Stock Exchange (CSE), and other financial markets. CySEC is also responsible for the enforcement of the Investment Services and Activities and Regulated Markets Law of 2017, which sets out the rules and regulations for the operation of the financial markets in Cyprus. CySEC also ensures that all CIFs comply with the applicable laws and regulations, and that they act in the best interests of their clients.

How toregister acompanyin Cyprus?

1. Choose a business name: The first step in registering a company in Cyprus is to choose a business name. The name must be unique and not already registered with the Registrar of Companies. 

2. Prepare the documents: You will need to prepare the following documents: Memorandum and Articles of Association, a Declaration of Compliance, a Certificate of Incorporation, and a Certificate of Directors. 

3. Submit the documents: The documents must be submitted to the Registrar of Companies in Cyprus. 

4. Pay the registration fee: You will need to pay the registration fee, which is currently €350. 5. Obtain a tax number: You will need to obtain a tax number from the Inland Revenue Department. 

6. Open a bank account: You will need to open a bank account in Cyprus in order to receive payments and make payments. 

7. Register for VAT: If you plan to do business in the European Union, you will need to register for VAT. 

8. Register for social security: You will need to register for social security in order to provide benefits to your employees. 9. Obtain a business license: Depending on the type of business you are running, you may need to obtain a business license from the local municipality.

Taxation in Cyprus

Taxation in Cyprus is based on a territorial principle, meaning that only income generated from sources within the Republic of Cyprus is subject to taxation. The main taxes are income tax, value added tax (VAT), and special contribution for defence.

Income Tax

Income tax is imposed on the taxable income of individuals, companies, and other legal entities. The tax is progressive, with the top rate of 35% applicable to income over €60,000.

Value Added Tax (VAT)

VAT is a consumption tax imposed on the sale of goods and services. The standard rate is 19%, with reduced rates of 5% and 9% applicable to certain goods and services.

Special Contribution for Defence

The Special Contribution for Defence is a tax imposed on the income of individuals and companies. The rate is 3% for individuals and 5% for companies.