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The 9 Larnaka Companies Awarded by LCCI

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The 9 Larnaka Companies Awarded by LCCI contents General Manager George Psaras Larnaka Chamber of Why Cyprus ...................................................... 4 Commerce and Industry Why Larnaka .................................................... 6 Editor in Chief Cyprus Fact File .............................................. 8 Stefanos Thompson Concept Cyprus Larnaka Present and Future Design Business Opportunities ............................ 10 Christina Hadjiyianni Concept Cyprus Larnaka Donetsk Co-operation Administration Agreement ...................................................... 18 Valentina Thompson Concept Cyprus Exports by Εxperts ....................................... 24 Tel: 24 023180 The Larnaka Chamber of Printing Commerce & Industry................................ 28 A.G Lithotechnic Printers Ltd Tel. 24 651311 A Region that blends Business with Leisure ..................................................... 36 Publisher Larnaka Chamber of Commerce Larnaka Tourism and Industry Reaching the next level ........................... 42 Tel: 24 823855 Email: [email protected] Adding Quality to Larnaka ..................... 48 Larnaka enjoyed all year round ........... 54 They always come back ........................... 58 Private Enterprise will drive Larnaka Forward ........................................... 74 Larnaka: A City with a Rich Industrial and Commercial History ........................ 78 Meet the Arena Warriors .......................... 82 Larnaka: Business Agenda 2017 The Cyprus Legal System ........................ 96 Owning a Property in Larnaka ............. 102 A Publication by the Larnaka Chamber of Commerce All rights reserved. Reproduction in whole or part is prohibited without Cyprus International Trusts .................... 106 and Industry aiming to provide relevant information the written consent of the publisher. Opinions expressed in this Publication are not necessarily those of the Larnaka’s British University ...................... 108 on Larnaka to companies and individuals interested in editor or publisher. All reasonable care is taken to ensure accuracy but trade, investment and relocation decisions. the publisher cannot be held responsible for errors or omissions. Larnaka 2017 General Tax Considerations • Tax Free reorganisation provisions and group relief provisions why • Tax losses may be carried forward for a period of 5 years • Arm’s length principle • Access to double tax treaty network and to EU Directives • Advance ruling practice CYPRUS? Specific Tax Considerations • Pro-business government • One of the lowest standard tax rates in the EU • Strategic EU and eurozone location -12.5% applicable to all companies • Easy market access to Europe, Middle East and CIS Countries • Capital gains (on disposal of titles) are exempt from taxation in Cyprus • Low corporate tax (12.5%) • The effective tax on intellectual properties is 2% • Extensive network of 56 double taxation treaties Dividends are exempt from taxation in Cyprus (foreign dividends are also exempt provided • Social and economic stability that not more than 50% of paying company’s • Renowned international shipping and financial centre activities result directly or indirectly in “investment income” and foreign tax on income • Broad network of legal, accounting and banking services of the company paying the dividend is not less • Advanced telecommunications network than 5%) • Highly educated, qualified and multilingual workforce • Foreign Permanent Establishment trading profits are exempt from taxation • Easy access to decision makers • No withholding tax on dividend & interest • Enviable quality of life with a low crime rate payments to non residents - no exit costs • No restrictive tax legislation (No Control Foreign Corporation (CFC) rules and no thin capitalisation tules in Cyprus) • Tax incentives to attract highly paid employees (50% of employment income is exempt for five years if remuneration is in excess of €100k. • This will result in: - Top rate of personal tax reduced to 17.5% - Effective rate can be lower than 10% - Enhanced substance of Cypriot companies as decision- makers are encouraged to move to Cyprus. 4 5 Larnaka 2017 Business Agenda why LARNAKA? The Location The new International Airport makes Larnaka a regional hub ideal for business The People Well educated population makes quality recruitment easier The Professionals Top level services with audit firms, lawyers, all main banks etc The Lower Costs Lower rents, cost of living and property prices compared to the other Cyprus cities The Prospects Less developed, with imminent growth making investment very attractive The New Projects New Hotels, ongoing City Centre and Seafront regeneration and many more The Coastline An endless stretch of clean “blue flag” beaches on both sides of the city The Centre of Cyprus In the middle of Nicosia, Limassol and Famagusta region The Lifestyle A place where people effortlessly combine business and leisure The Famous Hospitality Historically renowned for a warm, cosmopolitan approach to visitors The Character and Culture Surprising choice of Theatres, Museums and many Events The Region’s Diversity Surrounded by picturesque villages and leisure choices: so much, so near The Safety Larnaka has the lowest crime record on the island 6 7 Larnaka 2017 Business Agenda Cyprus KEY FACTS COUNTRY PEOPLE Official Name: Republic of Cyprus Population: 803,200 Capital: Lefkosia (or Nicosia) (Republic of Cyprus, end of 2009) European Union: Member since 1st May 2004 Nationality: Cypriot National Holiday: 1st October Independence Day Descendants: Greek Cypriots trace their origins to Time: +2 hours GMT (three hours ahead in summer) the descendants of the Achaean Greeks and later the Measures: Metric system Mycenaean Greeks. Turkish Cypriots are descendants of the Ottoman settlers. GEOGRAPHY Religions: Greek Orthodox 78%, Muslim 18%, other Location: Cyprus is located in the extreme northeast (includes Maronite and Armenian Apostolic) 4%. corner of the Mediterranean, at the crossroads of Languages: Greek (official), Turkish (official), English is Europe, Asia and Africa. The island lies 71 km south of also widely spoken It’s a pleasure doing business here Turkey, 105 km west of Syria, and some 800 km east Literacy: 97.6% of Greece. Median Age: 35 years Structure: The third largest island in the Life Expectancy: 78 years Mediterranean Sea, Cyprus measures 240 km Population Growth: 1.66% (2010 est.) latitudinally and 100 km longitudinally. The island has a central plain with mountains to the north and south GOVERNMENT and scattered plains along the southern coast. Cyprus Form of State: Presidential Republic has 648 km of coastline. Suffrage:Universal, 18 years Area: 9,251 sq km (3,555 sq km are in the area occupied by Turkey) National Legislature: Based on adult suffrage. Government elected every 5 years. Climate: Mediterranean climate: with long, warm, dry summers from May to October and mild winters with Elections: Las held March 2013. Held every 5 years. occasional rain, lasting from December to February. Legal System: The Cypriot legal system is based on Main town populations: Nicosia district (capital) English common law, with civil modifications. 315,400, Limassol district 230.800, Larnaka district Juridical Branch: The Supreme Court of the 134,400, Paphos district 77,800. Republic, the Assize Courts and District Courts. 9 Larnaka 2017 Business Agenda LARNAKA Othon Present and Future Business Opportunities Theodoulou President of the Larnaka Chamber of Commerce and Industry Interview with Mr Othon Theodoulou President of the Larnaka Chamber of Commerce and Industry epresenting the Larnaka Business Community, LCCI President Othon Theodoulou 1. Mr Theodoulou, a lot has been said about the of LCCI for the re-development of the area, which welcomes all readers of our Annual Publication and in the following interview gives us relocation of the Petroleum and Gas Deposits. is already submitted to the urban committee for Can you inform us about these developments? credible insights on Larnaka’s business landscape as it is taking shape, especially with the final approval of development zones for the 2,5 miles of coastal area. The relocation of the recent developments. The fast recovery of the Cyprus economy, from the 2013 crisis, is It is well known that the deadline for the relocation of Gas and Petroleum deposits is the 31st of January gas and petroleum deposits will create a new Ra testament of the long standing qualities of the Cyprus business community. Larnaka is the gate of 2017. We expect that by the end of 2017- begins of very important business field in the area, ideal to Cyprus to the outside world, with the International Airport, the Port and the Marina, and is very well contribute to every sector of the local economy, 2018 the deposits of Petroleum will start relocating connected with all districts and cities through a well developed road network. It is the ideal place for especially tourism and land development. to Vasiliko Industrial Area. Regarding the deposits the establishment of companies targeting the markets of Europe, Middle East and North Africa, with I would like to reiterate to local and foreign of gas, all companies have decided to create a its unique location and individual characteristics, plus the important Cyprus incentives of low income investors that we can definitely assure them unified deposit in Vasiliko, and their relocation will be that the oil and gas depots are relocating from tax and the excellent legal banking and insurance
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