The UK has left the EU single market as of 31st December 2020 leaving businesses and individuals having to deal with the impact of the new reality. Whole sectors of industry have been and will be affected with major impacts across multiple industries and jurisdictions. Over the past few weeks British businesses that export to the continent have experienced, increased delays, customs declarations, paperwork taxes and extra charges and bureaucracy holding up exports. Small businesses in the UK are finding that sales to the EU are dropping off particularly those which traded online directly to consumers in the EU. Due to an oversight which was not exempted or negotiated health certificates are now required for consumer sales of food produce imported to the EU from the UK putting UK businesses at a disadvantage despite a trade deal being in place. The European Commission has published a website dedicated to explaining and guiding UK and EU businesses on tariffs and trade https://trade.ec.europa.eu/access-to-markets/en/content with a page dedicated to how you can report a trade barrier.
The UK Department for International Trade (DIT) has advised UK businesses that the best way to avoid trade barriers, border issues, and VAT problems is to register new companies within the EU from where UK companies can trade goods and services.
By moving operations wholly or in part to new European operations taxation problems will also be alleviated. For those UK businesses considering establishing a foothold in the EU, Cyprus presents itself as a viable and attractive option.
REASONS TO CONSIDER CYPRUS AS YOUR BASE FROM WITHIN THE EU
- Close historical and cultural ties with the United Kingdom
- Legal system based on the English law
- English is the language of business and most speak it fluently
- Easy access to online government resources
- Progressive investor friendly laws in many fields
- Proximity to major markets in the EU, middle east and Africa
- Full member of the EU since 2008
Attractive Tax Regime
- One of the lowest corporate tax rates in the EU at 12.5%
- Easy process of establishing a business and running it from Cyprus
- Cyprus has a renewed double taxation agreement in place with the UK
- Capital gains tax exemptions
- No withholding tax on outgoing dividends
- Notional interest deduction available for equity investment into Cyprus companies
- Growing financial services industry
- Attractive personal tax regime for international professionals and non-domiciles
- Tax deductions and incentive schemes for start-ups and headquartering of businesses
Low Cost of Doing Business in Cyprus
- Low business premises rental rates
- Affordable legal and accounting support
- Low labour cost for skilled and professional workers
- Business can be run through services or virtual offices
- Low cost and efficient workforce
- Highly educated local workers
Reliable Business Support
- Government provides support and guidance for the establishment and operation of businesses
- International accounting standards adopted with many ACA and ACCA accredited accounting firms
- High availability of affordable office and business premises
- Availability of serviced or virtual offices
- Ease of issuance of work permits for workers and their families
We aim to keep you abreast of legal and procedural issues from within the EU and the UK so that you can plan ahead for your business as best you can. We can advise you on any aspect of law related to the establishment of a business entity in or branch Cyprus from company formation right through to immigration procedures for staff, dispute resolutions and tax issues.
Please contact us on email@example.com or call us on +357 2233 6100 if you would like more information on Cyprus and post Brexit solutions for your business.