Sergey Kartashov (SergejsKartasovs) explains why Cyprus is best country for relocation business

Sergey Kartashov, the CEO of Generation Partners, an asset management company based in Cyprus, explains the reasons behind the success of Cyprus in attracting relocation business in Europe. The IT companies find this country most favorable to open and maintain their business. Generation Partners is well aware of the local jurisdiction in Cyprus.

Sergey Kartashov, the CEO of Generation Partners, an asset management company based in Cyprus, explains the reasons behind the success of Cyprus in attracting relocation business in Europe. The IT companies find this country most favorable to open and maintain their business. Generation Partners is well aware of the local jurisdiction in Cyprus.

In the past few years, a huge number of companies relocated to Cyprus from Europe and other countries across the world. Financial experts think that the island is one of the best locations in Europe to operate a business. Sergey Kartashov (Sergejs Kartasovs) discusses how Cyprus provides favorable business conditions.

Tax Flexibility
Cyprus is considered as a tax haven due to its flexible taxation system. It has the lowest income tax rates, only 12.5%, in the European Union (EU). The companies avoid double taxation by using the agreements signed between Cyprus and various other countries including Ukraine. A company has to pay only 19% VAT on the products and services sold to the EU residents. There is no VAT on the products and services sold to the non-EU residents. Moreover, a company can transfer dividends to any foreign account or financial entity without paying any tax.

IP-Box Regime
Only a few European countries have introduced the IP-Box regime. The IP-Box regime in Cyprus is providing huge tax benefits to the companies. The companies only have to pay tax on a part of their profits. They pay 2.5% tax on earnings and in some cases, they do not have to pay any tax on earnings. However, companies have to fulfill certain requirements to acquire IP-Box benefits. Generation Partners notes that the IP-Box regime brought more companies to Cyprus in the last few years.

Offshorization to Deoffshorization
Cyprus has been working hard to getting rid of its reputation as a country for offshore companies. The company has implemented anti-money laundering legislation gradually. The Central Bank of Cyprus tracks the funds received by a Cypriot company. Moreover, the bank tracks the customers of the companies as well. A company has to face serious consequences if local officials find its fictitious presence on the island. “This is a huge step that has made Cyprus attractive to large international companies and investors,” notes Sergey Kartashov (Sergejs Kartasovs).

In a very short time, Cyprus changes its reputation from an “Offshore Country” to an “IT Business Mecca”. However, the relocated companies find it tough to open a bank account in Cyprus. The local bank officials review the account applications carefully before opening the business accounts. The businesses must have to declare their actual sources of income in the application. “In fact, this approach helps to attract large net capital to the country,’ explains Generation Partners CEO.

The Competitors of Cyprus
Cyprus is facing a healthy competition in terms of providing favorable conditions for businesses. Great Britain is having a stable and prestigious banking system. Ireland is also offering an income tax rate of 12.5%. Estonia is offering the businessmen to open their companies remotely. Malta is offering fair income tax cuts to businesses upon fulfilling some conditions. However, Cyprus is still the most favorable country to relocate your business. Sergey Kartashov notes that it will be the major IT hub in the EU if it keeps on following the currently implemented procedures.