Cyprus is the best place for Entrepreneurs and here is why. (Copy)
In a recent article, we covered the top reasons why Cyprus is one of the best countries to invest in right now. There are numerous economic sectors on the island offering very attractive investment opportunities but Cyprus is not just limited to being an investor’s heaven.
It is also an Entrepreneur’s paradise.
Over the last few years, the Cyprus Government and other organizations have been placing a stronger focus on the Country’s rising Entrepreneurial Ecosystem and have rolled out a number of incentives, development programs and grants to support local and foreign Entrepreneurs in launching their businesses on the island.
With globally known companies such as Amdocs, IBM, Wargaming, Oracle (to name a few) basing their offices in Cyprus, it is definite that there are good reasons for one to consider operating their business here. At Emerald Group, for over 20 years, we have helped companies and individuals to launch their businesses in Cyprus successfully and here are the top factors that make this island the best base for any start-up, big or small.
According to an article on the subject published in Harvard Business Review, the three key challenges faced by Entrepreneurs globally are:
1. Access to talent.
2. Excessive bureaucracy.
3. Scarce early stage capital.
Here is how Cyprus offers true competitive value to address each of those challenges:
1. Access to high quality talent:
Cyprus offers a fine selection of local and international talent.
Local Talent:
Almost half of the population have tertiary education (highest percentage amongst EU countries)
80% are multilingual (key languages being Greek and English)
More Cypriots complete their University degrees abroad than the citizens of any other EU Country
International Talent:
Access to Europe’s workforce of 240 million all of which are eligible to work in Cyprus
If specific talent is required outside of Europe, work visas for non-EU nationals can be granted to accommodate the companies’ specific needs
Labor cost is amongst the lowest in Europe with hourly rates in Cyprus being lower by 50% when compared to those in other European major capitals.
2. A transparent and reliable legal system:
The regulatory framework is straightforward and transparent and the legal system is closely aligned to the English common law.
Bureaucratic procedures are kept to a minimum making establishing a business in Cyprus simple and fast with low registration costs.
3. Low-start-up costs:
To add to the competitive company registration fees, low labor costs and public and private grants available to support starting businesses, Cyprus offers competitive prices on rental of office spaces as well as numerous coworking buildings and incubation centres.
Other facts about Cyprus for Entrepreneurs to consider:
The Cyprus Startup Visa scheme: A special regime allowing Entrepreneurs from countries outside of the European Union and the European Economic Area to be granted working permission on the island to establish start-ups with high potential growth.
IP Regime: Strong Intellectual Property protection and an attractive IP Tax regime offering tech companies that produce IP to apply for an 80% tax exemption reducing the corporate tax rate to 2.5%
Strategic Geographic Position: Located at the crossroads of Europe, Asia and Africa Cyprus grants easy access to service clients from many locations and offers full access to a European market of over 500 million consumers.
One of the most attractive tax regimes in the EU: The corporate tax rate in Cyprus is only 12.5% and double-tax treaties are in place with more than 50 countries worldwide.
Grants & Funding: A number of incentives and grants provided from Cyprus and the European Union as well as compelling funding opportunities provided by banks and other organizations.
The growing number of start-ups in Cyprus come from various sectors however we see a stronger percentage of these start-ups coming from the Tech, ICT, Fintech, Forex and Blockchain industries. And this comes as no surprise if you consider the global giants from these industries that have either moved their headquarters here or have opened huge offices operating from Cyprus to service their clients from the Middle East, Europe and Africa.
Some of these giants? Microsoft, Oracle, IBM, NCR, 3CX, SAP. Multi-billion Forex companies such as eToro, Saxo Bank, FXPro, ForexTime and BD Swiss and hugely successful gaming companies such as Wargaming have been operating in Cyprus for several years.
Above all, an Entrepreneurial Community.
By being based in Cyprus, the networking opportunities to form business partnerships, find investors and exchange ideas with likeminded Entrepreneurs are also a significant factor to add to the benefits of starting a business here.
Over the year, there are numerous events, conferences and start-up accelerators taking place with an aim to boost and strengthen the Entrepreneurial community of Cyprus such as:
Cyprus Entrepreneurship Competition: A business plan competition that aspires to nurture an entrepreneurial culture among - scientists, start-up founders, and hi-tech entrepreneurs, and challenge them to transform their ideas into real business opportunities and to the leading companies of tomorrow.
Reflect Festival: An annual 3-day conference that connects businesspeople, corporates, start-ups, academia, entrepreneurs, students, and tech & science enthusiasts. The event has thousands of attendees each year and features truly elite speakers from Fortune-500 companies and some of the most successful start-ups worldwide.
Hack Cyprus: A 40+ hour hackathon event bringing over 250 creative developers, designers and ideators to form teams, brainstorm, share ideas, and help each other build awesome things.
More casual events taking place on a weekly basis to facilitate networking within the community are also in place and can be found on the well-known platforms in the start-up world such as OpenCoffee, Startup Live and others.
Last but certainly not least…
As you see, Cyprus offers all the prerequisites, tools and favorable economic conditions to start your business. But one of its key competitive advantages, is that it offers a packaged deal of an excellent business environment but also, a superb quality of life.
Let’s not forget that the ‘work hard’ mentality of Entrepreneurs has shifted over the last years with important CEOs and Founders speaking up against the ‘work-hard-only’ mindset and highlighting the importance of balancing a hard work ethic with rest, hobbies and quality of life. A balance of these two worlds is what brings forth true productivity that can last long-term and, most importantly, bring a much higher life-satisfaction and a stronger sense of happiness.
And when it comes to quality of life - Cyprus truly offers it all. From a Mediterranean climate that offers 300 sunny days per year, to natural beauty, a rich history & culture, a vibrant nightlife, delicious cuisine, pristine beaches (over 64 blue-flag beaches across the island) all the facilities for an active lifestyle from sailing to diving, wind-surfing, golfing, skiing and any type of sport you can imagine and most importantly – a safe country to live in being ranked in the “Top 5 safest Countries in the world” by Value Penguin.
In Cyprus you can truly have the best of both worlds - to turn your dream, passion and idea into a thriving business and to enjoy life whilst doing it. What more can one ask for?
If you are considering Cyprus as a location for your start-up but have more questions and would like more specific information to your unique business needs, our team of experts is available for a no-commitment first meeting or virtual call to answer all your questions and if you choose to do business with us - to accommodate you at all the stages of your start-up’s business cycle.
Disclaimer: Some information & statistics were based on information from Cyprus’ Investment Promotion Agency: https://launchincyprus.com/index.html