Information - The Island of Cyprus

After a recent history in which the chief industry was tourism, the island of Cyprus is now well and truly on the map as an international business centre. The requirements for such a change are many and varied, from the sophisticated telecommunications infrastructure needed to be in instant touch with the rest of the world, to legislation and efficient procedures for setting up companies. But the most visible need is for people: the individuals who run and staff the companies.

Factors that Cyprus has in its favour in this respect include education: the island produces a high proportion of well-qualified candidates in many areas. However, the situation is tight. While having one of the lowest rates of unemployment in the EU is generally considered a good thing, it does present problems for employers in the lack of available candidates.

Cyprus is a popular location for international consultants, contractors and expatriate workers. Because this is a former British colony, English is spoken fluently by about 90 per cent of the population, and all major roads and towns are signposted in English and Greek. With a lower cost of living than most of Europe, an excellent climate, an English public school system (from pre-school to A level) and one of the lowest crime rates in Europe, it is not difficult to see why Cyprus is an excellent place to work and bring up a family.

On 1 May 2004 Cyprus joined the European Union, which means that EU nationals can now live and work there without the need for work permits and with no currency restrictions. While the cost of living is lower, it must be taken into account that salaries are often lower than in other European countries. However, out of the ten new member countries that joined the EU at that time, Cyprus has the highest GDP and income per head of population. With EU membership, the island is ideally placed for international companies trading in Eastern Europe and the Middle East.

It currently enjoys the lowest corporate tax rate in the EU (ten per cent). This, coupled with the fact that Nicosia, the capital, ranks as one of the least expensive of the leading international centres, also makes Cyprus an attractive destination for the international business community.

All in all, the situation is similar to Dublin before the boom, although obviously the climate is very different - and that can hardly be considered a complaint.

The income tax system in Cyprus is progressive: in other words, the higher your income, the higher the rate at which you will pay tax. In 2008 the tax rates for an individual were 20-30 per cent.

All this has not gone unnoticed in the international business community. More than 30 foreign banks have established a presence here, along with upwards of 1200 international business corporations which have fully-fledged offices.

Something of which the Ministry of Commerce, Tourism and Trade is very proud is its "one-stop shop" designed to smooth the path of any new business in Cyprus. The idea is to make it possible to complete all the procedures and acquire all the necessary permits within seven days of the initial application. Although that might be optimistic, it is clear that the island is moving in the right direction.

In certain areas of work, there is little choice but to recruit from outside the island - a company having satisfied the authorities that it has made every effort to fill a post locally.

The world is becoming ever more accustomed to upping sticks and going where the professional action is, but obviously it is important for anyone considering such a drastic change to be fully aware of what they are taking on.

This is a place where sunglasses and shorts don't get put away for months at a time, as even in January, which locals might consider the depths of winter, there is often bright sunshine and a pleasant temperature.