4+1 Factors to consider when moving your business to Cyprus

As a popular demand by many existing and potential clients, K.P.S. Services Ltd editorial team decided to publish this article for Cyprus Companies who were incorporated in the past or will be incorporated in the future (click here for further details on forming a Company in Cyprus) and decided to move their substance business activities and headquarters to Cyprus.

In the paragraphs to follow therein this publication we shall provide detailed information on what a businessman needs to consider when transferring his business management in Cyprus, and the underlying costs involved.

 

  1. Where shall I rent/purchase an office and what is the cost involved?

A Cyprus Company can rent or purchase any office in the city that the client prefers, i.e. by the sea or inland. The rental/purchase cost depends on the following factors:

a) The city where the premises will be located. For example, currently Limassol is the most expensive city regarding rental and purchase prices of properties.

b) The age of the building where the office is located.

c) The size of the underlying office (i.e how many square meters are needed).

d) The rental period; i.e. if the rental agreement will be for a short-term or long term period.

 

  1. Internet and electricity providers

The second step after renting/buying an office is to install your landline and internet connections. In this case, you may choose from many local providers like CYTA, MTN, Cablenet, and Primetel who will submit their own quote for you to assess and choose.

For electricity, Cyprus currently has one provider being the Electricity Authorities of Cyprus, and a guarantee will be requested for establishing a connection to your premises.

 

  1. Are there many suppliers for office furniture or do I need to import?

Cyprus has many providers for office furniture to choose from both locally made and imported. Examples are Nora, Titan, Studio Andreotii, Seccom Furniture Office etc.

We recommend to our clients always to require at least three offers from three different suppliers before making their decision.

 

  1. Website and other costs

It is imperative in the digital era that we live in to have a website for your Company. K.P.S. Services Ltd via its IT department and professional associates can assist you with the design and content of your preferred website with an estimated cost of €2.000 – €10.000 depending on your Company needs.

Other costs that you may need to consider are branding, press releases, and digital media promotions which again can be provided by our In-house professionals and associates.

  1. Recruitment and salaries.

An important cost of your Company will be the salaries, social insurance, and medical insurance. If employees are recruited from third-party countries, i.e., not from European Union countries, you will need to take into consideration the costs of issuing working visas.

The cost of Social insurance in Cyprus is as follows:

Contributions rates for employers, employees and self employed
Funds:

 

Employer

%

Employee

%

Self-Employed

%

Social Insurance8,38,315,6
National Health Insurance 1,851,7
Social Cohesion fund 2,0
Redundancy Fund1,2
Industrial Training 0,5
    

 

K.P.S. Services Ltd can undertake the promotion and further assessment of candidates saving your Company from unnecessary expenses and time wasted.

On the other hand, if employees are from 3rd countries, K.P.S. Services Ltd will assist you in issuing the working visas for your employees.

 

Conclusion

In conclusion, you need to be able to assess the initial capital for the Company to commence its yearly activities and at the same time to prepare a three year cash flow for the financial security of your Company while operating in Cyprus. By forecasting correctly your expenses and comparing it to your actual financial capacity you will be able to assess if moving to Cyprus is a viable decision.

The content of the above article is to provide a general briefing on businesses wishing to move to Cyprus. Specialized, tailor made advice should be requested based on each scenario and specific needs.