Sergey Kartashov (Sergejs Kartasovs) is the CEO of Generation Partners LTD, an IT asset management company based in Cyprus. He is well aware of the conditions offered by the island to the IT startups. He expressed his views on the factors that make Cyprus the most ideal location for relocating IT businesses.
According to him, many companies from Eastern Europe moved to Cyprus in recent years. Various key factors are involved in making the island an attractive location including taxation system, legislation, community, cost of living, infrastructure, healthcare, travelling time, and many more. Sergey Kartashov discussed these factors in detail while talking about Cyprus as an ideal place for relocation.
Tax Benefits and IP-Box Regime
Cyprus is the most favorable country for relocating IT businesses as compared to the US, Germany, Portugal, the Czech Republic, the Netherlands, Estonia, Lithuania, Poland, and many more due to its affordable taxation system. The country offers corporate tax on net income as low as 12.5%. The Value-added Tax (VAT) is 19% in Cyprus if a product or service is sold to a European Union (EU) resident. Otherwise, the companies do not have to pay any VAT. The IP-Box regime allows the companies to pay taxes only on a part of their income.
Natural Location of Cyprus
The natural location of Cyprus is ideal for various East European countries. The average flight time is less than three hours from Eastern Europe to Cyprus. So, the employees and officials of an IT company can get back to their homes in a quick time from the island. Sergey Kartashov noted, “It is quite convenient. Another plus is that a flight to almost any EU country lasts pretty much the same.”
Infrastructure of Cyprus
The infrastructure of the island is developing rapidly. The relocation of foreign companies to Cyprus in recent years has boosted the economy of the island substantially. The country has improved a lot in terms of residential and business infrastructure development. The rent for a two-room apartment in the city center is just $1300-1400 per month. Similarly, the cost/m2 of a class A office in Cyprus is about $400 per year. “According to studies, the average cost of medical care in Cyprus is about $30 per month,” noted Sergey Kartashov.
A Strong Community of Russian-Speaking Developers
Cyprus is an ideal location for game developers and Russian-speaking IT specialists. The country already has a strong community in this regard. Most of the companies prefer to work in a community where they can easily find friends and people of the same interests. “That is why here has been formed a solid professional community that speaks the same language and works in the same area,” expressed Sergey Kartashov (Sergejs Kartasovs). From Eastern Europe, Cyprus is undoubtedly the best country for the IT startups to relocate to. It has a huge potential to allow IT startups to turn their ideas into reality, according to CEO Generation Partners.