Cyprus and the Eurozone
Cyprus has joined the European Union on 1st May 2004 and became a member of the Eurozone in 2008. The admission to the European Union unlocked new opportunities and brought economic and political stability which transformed the island into an international business hub and a corporate service centre.
Cyprus has successfully faced the challenge of European integration and distinguished itself as a reputable jurisdiction for holding and investment companies. In addition it has proven to be an exceptional doorway for investments in and out of the European Union and Middle East markets.
Not only it has one of the lowest corporate tax rates in the Eurozone (12.5%), but also offers a wide variety of exemptions to income deriving from investing activities especially to foreign investors.
The government enhances its service sector and regulates the markets to boost the conditions of macroeconomic development and effective business environment. As a result the economy of the island is flexible and dynamic with the service sector (tertiary) generating over 70% of the Gross Domestic Product (GDP).
Furthermore Cyprus is a country committed to education with a highly qualified and multilingual workforce. 33.6% of Cypriots between the ages of 15-64 are tertiary educated, which is higher than that of the EU27 (23.6%).