Sergey Kartashov (Sergejs Kartasovs) considers Cyprus as European IT hub in future
Sergey Kartashov, the chief executive officer of Generation Partners LTD, expressed his views about the huge success of Cyprus in the field of IT investments and infrastructure. Several countries in Europe are offering benefits to businesses to operate profitably. Great Britain, Ireland, Malta, and Estonia offer attractive tax flexibility and transparent bureaucratic procedures to businesses.
Sergey Kartashov, the chief executive officer of Generation Partners LTD, expressed his views about the huge success of Cyprus in the field of IT investments and infrastructure. Several countries in Europe are offering benefits to businesses to operate profitably. Great Britain, Ireland, Malta, and Estonia offer attractive tax flexibility and transparent bureaucratic procedures to businesses.
Belgium, the Netherlands, France, Spain, Luxembourg, and Hungary have also implemented the IP-Box regime to attract IT investors and businesses. However, Cyprus has the collective benefits for the companies that want to relocate. Generation Partners, an asset management company located in Cyprus, noted that the island had successfully attracted large companies in the past five years. The companies from Europe and post-Soviet states have been relocating to the island in the past few years.
Sergey Kartashov talked about the attractive business conditions offered by Cyprus to the large companies. Some of these conditions are the IP-Box regime, tax benefits, anti-money laundering legislation, simple company registration process, and simple regulatory reporting system.
Cyprus’s IP-Box Regime
It is very easy for a company to open and operate its business in Cyprus. It is one of the best jurisdictions in Europe in this regard. The taxation system of the island is one of the most attractive features that urges businesses to relocate here. The income tax rate in Cyprus is just 12.5%, the lowest in the European Union. Cyprus is one of the few EU countries that have introduced the IP-Box regime. The CEO of Generation Partners said, “IT companies get the best conditions in Cyprus.” The government collects only a part of the profit from the IT companies due to the IP-Box. Sergey Kartashov said, “Within its framework, only part of the profit from the creation or modernization of intellectual property falls under the state duty.”
Moreover, the companies only have to pay 19% value-added tax (VAT) on the sales of their products. If they sell the products to the non-EU residents, they do not have to pay any VAT. The companies can send dividends to foreign accounts free of any tax. “In fact, the tax on earnings in this area is often dropped to 2.5%, and sometimes even zero,” Sergey Kartashov(SergejsKartasovs) said.
Anti-Money Laundering Legislation
Cyprus has been working on implementing the anti-money laundering procedures since it entered the EU in 2004. The country gradually implemented the “Anti-Money Laundering” legislation to combat corruption and illegal money transference. Generation Partners CEO noted, “In the future, this strategy may help Cyprus become the largest IT hub in Europe.” The country is committed to get rid of its offshore reputation. This approach is helping the island to attract large companies from Europe and all across the world.
There is a lengthy process of opening a bank account in Cyprus. Many businessmen find it tough to get an account in a local bank. In the bank account application, a businessman has to disclose its source of income. The bank officials review the application thoroughly before accepting it. “This is the right step towards a completely new reputation of Cyprus,” said Kartashov. In terms of collective benefits for businesses, Cyprus is the most favorable location in Europe. At the moment, the companies should relocate to the island after the complete formation of their business.