Insider Business Services sector in Cyprus not concerned over Brexit

Services sector in Cyprus not concerned over Brexit

There is a lot of speculation over the UK leaving the EU, especially concerning ​​corporate tax and services. And this because the United Kingdom’s exit from the European family will give London the necessary flexibility to amend its fiscal framework, according to analysts.

The UK has already announced the reduction of corporate tax from today’s 19% to 17% as of early 2020.

But KPMG Cyprus Partner Costas Markides told Insider that this aspect should not be of particular concern  to Cyprus because the Mediterranean island does not compete with London when it comes to corporate tax.

Markides also said that Cyprus has already established itself as a credible regional financial service provider offering a variety of tax incentives while maintaining a low corporate tax rate. And this in combination with the very low cost of operating a company in Cyprus.

“Cyprus does not compete with London on this, the countries that will mostly feel the ‘threat’ of a reduced corporate tax in the United Kingdom are Ireland, Luxembourg, Belgium and the Netherlands,” he added.

Cyprus’ corporate tax was 10% in 2012 but after pressure from European partners it went to 12.5%. A couple of months ago, Finance Minister Harris Georgiades talked about the possibility of raising corporate tax to 15%, sparking a backlash from the business community. The proposal was dropped within 24 hours.

“Cyprus has repeatedly said that any discussion of adopting a common tax rate within the EU does not find us in agreement. Each Member State should be free to decide its fiscal policy according to its needs and, of course, according to the economic model it implements,” Markides said.


Read more:

Top Stories

Government requests almost 3 million for additional Covid testing and contact tracing

  The Health ministry is seeking 2.9 million euro in additional funds to cover Covid-19 testing and subsequent contact tracing, urgently needed as virus infections...

EU Health Commissioner Kyriakidou in self-isolation after contact with covid case

  The Cypriot EU Health Commissioner has been in home self-isolation since yesterday, following close contact with a confirmed Covid-19 case. Stella Kyriakidou reported the story...

Macron says Belarus Lukashenko must go: paper

  Belarusian President Alexander Lukashenko must accept the logic of democracy and quit power, French President Emmanuel Macron told le Journal du Dimanche. Belarus, a former...

Driver under the influence of cannabis in Paphos

  A twenty nine year old has been arrested in Paphos for driving under the influence of cannabis as well as a series of traffic...

Covid patients at referral hospital rise to 17

  Patients being treated for Covid-19 at the Famagusta General Hospital, the referral institution for coronavirus, have gone up by three, to 17. Four of them...



Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...


Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...