The finance industry has seen significant growth in the past few years. In the United States, banks are more profitable than ever and in Europe, companies like Revolut are changing the way people bank. The number of fintech companies is rising. If you are in the process of starting a fintech business, the first thing you need to consider is the location. This is because this can determine whether your company will be successful or not. In this article, we will look at some of the reasons why you should consider incorporating the business in Cyprus.
Highly-skilled workforce
Cyprus is known for its vibrant financial sector. If you have ever used a forex broker, there are chances that the company is incorporated in the country. Part of the reason for this is that the country has some of the most-skilled employees in the financial sector. Since Cyprus does not have a lot of natural resources, most students focus on finance and technical courses. Therefore, you will find good employees, who will be more affordable than in most other cities in Europe.
Tax Haven
Cyprus is one of the best-known tax havens in the world. The country has the lowest corporate taxes in Europe. The country has a corporate tax of 12%. This is significantly lower than the EU’s average of 22%. This means that companies that are incorporated there pay less taxes. As such, they keep more money to themselves and their shareholders. In the low-margin financial business, a single basis point can mean significant profits or losses.
Part of the European Union
The European Union is the second-biggest economy in the world after the United States. The region has more than 500 million people. Most of them are incredibly wealthy people. As such, a company that is incorporated in Cyprus becomes part of the European Union. It means that it can access all these markets without paying tariffs. The regulations are relatively standard, which makes operations easy.
Incentives
The Cypriot government has put in place several incentives to attract foreign capital. One of the best-known incentives is the Cyprus golden passport. The passport enables anyone who has the minimum amount of money to invest in the country. The minimum amount is usually about $2 million. Therefore, if you are a foreigner, you can easily become a Cyprus citizen by investing this money. After this, you can become a full citizen of the European Union. You can use a company like Page Corp Group to help you deal with immigration.
Potential for Growth
Cyprus has a lot potential for growth. In the past few years, its annual GDP has been on an upward trajectory. In 2018, it grew by more than 4%, which was higher than the EU average of 1.8%. This means that the country is seeing significant growth. Incredibly, the country has a lot of potential. There are potential for many sectors in the financial sector that you can invest in.
In summary, there are several other reasons why you may want to invest in the country’s financial sector. All you need to do is to find a good idea, talk with the best consultants, and then hire a good team that will help you actualize your idea.