Sergey Kartashov: Cyprus is most favorable country for IT companies in Europe

Sergey Kartashov (Sergejs Kartasovs), the chief executive officer (CEO) of an asset management company, Generation Partners LTD, talked about the popularity of Cyprus as an IT hub in Europe. He shared the factors behind the success of the island to attract IT companies to relocate their business to Cyprus. His company works in the field of asset management, investment in potential IT projects, and promising business companies. Generation Partners has a huge working experience under the local jurisdiction in Cyprus.

Sergey Kartashov (Sergejs Kartasovs), the chief executive officer (CEO) of an asset management company, Generation Partners LTD, talked about the popularity of Cyprus as an IT hub in Europe. He shared the factors behind the success of the island to attract IT companies to relocate their business to Cyprus. His company works in the field of asset management, investment in potential IT projects, and promising business companies. Generation Partners has a huge working experience under the local jurisdiction in Cyprus.

Cyprus – A comfortable business location
In terms of doing business, financial experts consider Cyprus a promising location in Europe. It is the best jurisdiction to receive dividends and operate a business. The island offers a simple company registration process, a comfortable regulatory reporting system, and a flexible taxation system.

The income tax rate in Cyprus is the lowest in the European Union (EU). The island offers just a 12.5% income tax to the companies. The companies do not have to pay double taxes as Cyprus is having agreements with various countries including Ukraine to avoid double taxation. There is not value-added taxation for companies that sell their products to non-EU residents. On the products purchased by the EU residents, there is a 19% VAT. Last but not least, there is no tax on sending dividends from a Cyprus-based company to any financial entity or a foreign account.

Cyprus is one of the few European countries that have introduced the IP-Box regime. It allows the companies to pay taxes only on a part of their income. Generation Partners noted that the tax on earnings in Cyprus is as low as 2.5%, or sometimes even zero.

Deoffshorization
In the past, Cyprus was known as a country for offshore companies. Since joining the EU in 2004, the island has been working on getting rid of this reputation. It has gradually implemented the anti-money laundering legislation to fight against the illegal money transference and corrupt capital. The Central Bank of Cyprus tracks the payments received by the businessmen and companies based in Cyprus. Sergey Kartashov explained, “This is a huge step that has made Cyprus attractive to large international companies.”

The country is receiving huge investments from well-reputed international companies every year. Sergey Kartashov added, “It strengthens its reputation as a major business hub.” The companies must have to show their compliance with certain criteria to get IP-Box benefits. If a company possesses only a fictitious appearance in Cyprus, then it will face serious consequences. “This is another reason why Cyprus changes its image in a short time, turning it from an offshore country into an IT business mecca,” explained Sergey Kartashov (Sergejs Kartasovs).

Other attractive European countries for company relocation
Cyprus is not alone in terms of attracting companies to relocate their business in the European region. Ireland, Great Britain, Estonia, and Malta are also offering favorable business conditions to foreign companies. However, Cyprus is playing a leading role in the field of providing the best jurisdiction for businesses in Europe. The CEO of Generation Partners called Cyprus an “IT business mecca.” He predicted the future of the island as a leading IT hub in Europe.