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

Drop in new covid cases and hospitalised, 202 and one death

  Cyprus recorded one covid-19 death over the past 24 hours, raising the number of victims to 167, 111 men and 56 women with an...

Rapid test locations on Sunday

  Here are the rapid test locations for Sunday January 17 Limassol Tassos Papadopoulos Building-Technical University Limassol (corner of Ifigeneias and Themidos) 8.30-04.30 Ayia Varvara Church Zakaki 9.00-04.30 Ayios Stylianos Church,...

Low visibility on highways as bad weather continues

  Visibility is very low on the Larnaca-Nicosia and Nicosia-Limassol highways, with the network near the Mosfiloti area becoming waterlogged. Police are calling on drivers to...

Explainer: Can Trump pardon himself? Would the courts reject the move?

  As he prepares to end a tumultuous four years as U.S. president facing potential legal jeopardy, Donald Trump has discussed the possibility of pardoning...

U.S. state capitals on edge for armed protests as Trump presidency nears end

  U.S. law enforcement officials are gearing up for pro-Trump marches in all 50 state capitals this weekend, erecting barriers and calling in their National...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...