Sergey Kartashov (Sergejs Kartasovs), the chief executive officer of Generation Partners, expressed that Cyprus was the best country for the East European IT startups to relocate to. Generation Partners provides asset management services to clients in Cyprus. The CEO of the company shared various factors that play a crucial role in making a country more attractive to foreign companies.
Why Cyprus is the best location for relocating IT startups
There are various factors that make Cyprus the best location for relocating an IT startup, especially from East Europe. When Cyprus is compared with other IT giants including Germany, the US, Estonia, Poland, the Netherlands, and many more, the island looks far better. Sergey Kartashov revealed various key factors in this regard including better taxation system, affordable and transparent company registration process, better infrastructure, affordable cost of living, IP-Box regime, warm weather, strong community, and many more.
He is a huge admirer of the tax policy and legislation of Cyprus. “The most famous benefit of Cyprus in the world is the flexible taxation system and the implemented IP-Box regime,” noted CEO Generation Partners. The island offers the lowest corporate tax on net income (12.5%). It is having Double Taxation Agreements with various other countries that enhances its attraction. The companies based in Cyprus usually pay no or less than 2.5% tax on their earnings. The IP-Box regime has the benefit of paying tax only on a part of income. Moreover, the IT companies only have to pay VAT (Value-added Tax) of 19% on the sales of their products and services to the EU residents.
“The average flight time to most of the Eastern European countries from Cyprus is three hours. It is quite convenient. Another plus is that a flight to almost any EU country lasts pretty much the same,” noted Sergey Kartashov. The IT firms prefer a location from where they can reach other countries quickly and efficiently. Luckily, the natural location of the island provides this benefit to the relocating IT startups. Similarly, Cyprus is one of the most affordable countries in terms of setting up an office and residential expenditures. A two-room apartment in the center of the city costs $1300-$1400 per month. The infrastructure of the country is developing at a good rate due to a noticeable economic injection provided by foreign investments.
Sergey Kartashov added to the benefits, “Cyprus is one of the most popular locations for two categories: game developers and Russian-speaking developers.” Most of the relocating companies prefer a location where they may easily find friends that possess similar traits and mentality. Based on these factors, Cyrus is undoubtedly becoming one of the most suitable countries to relocate to run an IT business profitably. Last but not least, the CEO of Generation Partners appreciated the warm weather conditions and pleasant sights offered by the island.