Articles

Grant Thornton Cyprus, is pleased to announce a new service line under the Advisory Servicesbranch: The AI (Artificial Intelligence) and Data Lab, a pioneering initiative in advancing data-driven excellence.
 

Many international businesses are relocating in Cyprus to setup a company, a branch, a holding company or other structure like partnerships and trusts. Cyprus Companies offer many competitive advantages when compared with other global business centers. The following factors make Cyprus one of the most attractive international business hubs in the world for doing international business activities.

• Strategic geographical location. Cyprus is located in the eastern Mediterranean Sea, at the crossroads of three continents, Europe, Asia and Africa
• Business friendly
• English language is widely used as the main business language but one of the biggest advantages of Cyprus is the legal system which is based to the English law making it very effective and suitable for entrepreneurs. Educated workforce
• EU Member State
• Low set up and operating costs
• Efficient business environment accomplished by simple administrative procedures
• Advanced transport and telecommunications network
• High Standard of Living
• A beautiful country with a mild climate, no crime rate, hospitable population, a fantastic cuisine and tasty fruits and vegetables
• The favorable tax system

Cyprus today constitutes a world service center. Businesspeople benefit from the country’s simple tax legislative framework with competitive tax rates, also in line with the E.U. acquis and governed by a wide range of double taxation agreements with other countries.

1. Introduction

The authorization and operation of an investment firm in Cyprus is regulated under the Investment Services and Activities and Regulated Markets Law of 2017 as amended (“Law”).

The Law applies to investment firms, market operators and third-country firms providing investment services or performing investment activities through the establishment of a branch in the Republic of Cyprus.

The Law constitutes the national transposition of the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (“MIFID II”).

By broadening the tax exemption eligibility, Cyprus strategically aims to attract top talents from around the world. It has shown itself to be one of Europe’s most dynamic markets for talented professionals from all over the world. The generosity of these tax incentives is only a sample of the island’s commitment to fostering a dynamic and inclusive, growth-oriented economy. By doing so Cyprus is positioning itself as a preferred destination for dynamic companies and their highly skilled employees. With these additional incentives, a more inclusive version of the 20% and 50% exemption schemes has been introduced. These tax breaks have been designed especially for high income earners.

Real estate tokenization is a modern way of investing in real estate. This revolutionary concept, made possible because of blockchain technology and smart contracts, has disrupted the traditional real estate industry by offering investors access to fractional ownership of a property.

Real estate tokenization converts the value of real estate into tokens stored on a blockchain, enabling digital ownership and transfer. These divisible tokens represent a fractional share of ownership stake in that real estate.

Despite universal globalization, the real estate market's main problem is that it is still not global. Mass buyers and investors generally look at the real estate market within their country or city. Accordingly, for real estate development companies and property owners, this means an artificial reduction in demand, limiting opportunities for growth in their business. Smart contracts and tokens come to solve these problems. Together, they erase boundaries for real estate transaction participants, reduce transaction costs, and open new opportunities for market participants.