Jumpstart a Business in Cyprus: Challenges that Investors Should Know

Jumpstart a Business in Cyprus: Challenges that Investors Should Know

Cyprus has maintained a progressive economy over the years, which is the reason why investors are highly encouraged to put their money in a business within the country. While the success rate of investing in this country is higher compared to others, you will not be promised an easy road. In any business venture, challenges are to be expected, so getting the right information and asking assistance from local authority is crucial.

Here are some of those challenges:

Acquainting with Tax Laws

For starters, aspiring investors might want to know everything about Cyprus Double Tax Treaty. There are already agreements made between Cyprus and different countries around the world. Details can be read on the official website of the Ministry of Finance.

Securing Construction Permits

It involves a long and painstaking procedure. You have to request a copy of the site plan, apply at the Town Planning Department, apply for a building permit, and wait for the inspection before you can get the the permit.  The whole process usually takes around 677 days.

Connecting Electricity

The one in charge on this is the Electric Authority of Cyprus. They do several procedures like estimation, inspection of the location, connection, and installation of meters. Normally, it will be completed at an average of 247 days.

Registering Property

Cyprus is considered to be one of the countries with an easy process of property registration. The legal aspect is being handled by a lawyer. After which, you should submit the contract to the Department of Lands and Surveys. Then, you have to pay tax and submit a proposed declaration of transfer to the Land Registry.

Paying Taxes 

Cyprus may have a low tax rate, but the lengthy payment process makes it less competitive. It will usually take an average of 147 hours for a company to complete the procedure. Why is it so? It is because payment involves four corporate taxes and 12 social insurances.

Trading Across Borders 

Trading across borders has been a way of life in Cyprus. Although shipping of products has never been easy, it does not affect the speed of delivery. It only takes around less than a week to import and export items.

Imposing Contracts and Settling Bankruptcy

Settling bankruptcy is simpler as compared to imposing contracts. The former typically lasts for only one-and-a-half years. The latter is more complicated because it takes more than two years to see the result and it calls for steering at least 43 procedures.

Culture

A Cypriot business environment upholds certain values like respect, hospitality, and personal trust. With this in mind, you need to widen social networks and establish personal relationships with fellow investors and stakeholders. Building trust among them is essential if you want your business to flourish.

Conclusion

A lot of challenges have to be remembered to avoid the hassle of repeating the whole process. A careful reading of how to do each process, coupled with assistance from the government, will save you a lot of time, money, and effort.

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