Alexandra Burger interviews Richard Melton Executive Director of Vistra Cyprus Ltd

Thank you for making time to speak to me today Richard, you're based in Cyprus, a beautiful yet serious place for business. As Executive Director at Vistra, could you tell us about yourself and what you do?

Certainly. For those unfamiliar with Cyprus, we're an island in the eastern Mediterranean, an EU jurisdiction with Greek and English as official languages. Limassol, where our office is located, is a cosmopolitan city on the South Coast known for its booming business environment, particularly in technology, tourism, and financial services.

Vistra is a leading services provider involved in corporate expansion, fund administration, and private wealth management. We help set up companies globally, provide ancillary services like accounting and HR, and manage over 200 billion AUM in funds. Our office in Cyprus deals with all three areas—corporate expansion, fund administration, and private wealth.

What industries are prominent in Cyprus?

Cyprus has established industries in financial services, tourism, shipping, and technology. The financial services sector is robust due to our location, skilled workforce, and common law jurisdiction. Tourism accounts for 15% of our economy, attracting visitors primarily from the UK, and Europe. Shipping is another major industry, given our strategic location near the Suez Canal. Recently, the tech industry has also grown, with businesses and entrepreneurs from all over the world setting up operations here.

What makes Cyprus an attractive hub for technology companies? Are there tax advantages? Is there specific legislation protecting IP?

Cyprus offers a 12.5% corporate tax rate, one of the lowest in the EU, making it a great place to set up a company. We have preferential tax regimes, including a software patent intangible regime aligned with OECD standards, allowing up to 80% tax deduction on profits related to R&D. Additionally, residency schemes and personal tax benefits make Cyprus appealing for high-net-worth individuals and tech entrepreneurs. This environment has fostered a vibrant community of angel investors.

Cyprus has also attracted headquarter companies who have settled on the island. Why is that?

Our talent pool, multicultural environment, and favourable tax regime, including 12.5% corporate tax, make Cyprus ideal for headquarters. We have over 60 double taxation agreements, including with South Africa, making it attractive for holding companies. Income from dividends isn't taxed, and we have a notional interest deduction regime that can reduce tax on interest income to 2.5%. Additionally, there's no tax on capital gains and as an EU jurisdiction Cyprus adheres to EU directives, offering benefits for taxation and IP protection.

Cyprus is known for its successful residency schemes. Could you briefly describe the options available?

Certainly. Cyprus offers a residency program where an investment of around 300,000 euros in real estate, a fund or a business can grant non-EU citizens the right to live in Cyprus. We also have a resident non-domicile regime offering significant tax reductions on dividends, interest, and real estate income. This is particularly beneficial for high-net-worth entrepreneurs and skilled professionals.

To wrap up, are there any particularly famous people or companies based in Cyprus?

Cyprus hosts several notable companies, especially in technology. For example, EXNESS, one of the world's leading trading platforms and Nexus a gaming developer, are based here. We also have operations from global companies like MUFG, Amdocs and others in technology and financial services. Cyprus is a hub for significant corporate and entrepreneurial activity.