Having been doing business both in Dubai and UAE for some time, Cyprus is no way a paradise:
- complex tax rules (VAT, CIT, employees taxes etc) - the cost of running a
Cyprus company is comparable or in my personal experience higher than a similar setup in UAE.
- terrible local banking. The same goes to Dubai, so no major difference there, again most of the folks rely on EMIs or
Swiss banks to work with daily banking and treasury accordingly. Some people have a short memory, please google the banking crisis on Cyprus in 2008/9.
- property prices are crazy inflated by the same influx of Russians and ex-CIS residents. They call it "Limassolsk" now. The only difference - in Dubai you have plenty of nice areas to live, on Cyprus it's basically two towns and a very limited choice. Don't expect high finishings or great amenities unless you are ready to pay several mil EUR for your own dream house.
- forget about shopping, luxury things, fine dining, 1h delivery, massages for 40 EUR - you will not find anything like these on Cyprus
- personal taxes still apply. Non-dom helps to optimise the structure and 60-days tax residence is a real boon, but you still have to report your personal tax affairs.
- very low level of service except hospitality industry. Nepotism and general south laziness in every aspect of life - from doctor appointments to notary services.
- EU regulations everywhere (for those who deal with the countries that are not in the best relations with the EU)
There are some advantages of Cyprus when comparing to Dubai:
- Common law
- internationally recognises jurisdiction, no issues with blacklists
- better climate in Summer (however much worse in Winter time)
- better connected to Europe, however you mostly get Easyjet or "Club Europe" class to travel (not a big deal, but for those who spend their life in the plane cabin that matters)
- cheap, healthy and delicios food - you can easily find the same food in Dubai, but at 2-4x price.
- better quality of construction in the high-end apartments and villas and an option to build/customise your own place
- good UK schools where your kids will learn to speak English without Indian accent. Although, good luck getting there now.
- an option to get a Cyprus
citizenship
- better nature with more variety
- better air quality (if you stay away from the roads)
TLDR IMHO: Dubai is more flashy, more safe, better suited for high-end lifestyle and people dealing with the East. Perfect for a one-man business setup, zero tax on personal level, small/zero taxes on coprorate. Cyprus is more under the radar, sleepy but good for family and working with EU, good for a medium/big sized business, low taxes on personal level (with non-dom), low/medium taxes on corporate.