Cyprus
EU-domiciled private limited company with 15% corporate tax, extensive treaty network, and no minimum share capital.
Key Benefits
Full EU-domiciled company with access to the single market, freedom of establishment, and EU regulatory passporting.
15% corporate tax from 2026 with key exemptions on dividends from subsidiaries and capital gains on securities; effective rates often well below headline.
Over 65 double-tax treaties reduce withholding taxes and support efficient cross-border structuring for holding and IP companies.
Private limited companies can be formed with as little as €1, keeping entry costs low and structure flexible.
Company law draws heavily from UK common-law principles, providing a familiar and transparent legal framework for international investors.
Tax Overview
Corporate Income Tax
Standard rate on worldwide profits of tax-resident companies from 1 January 2026 (increased from 12.5%). Effective rates can be lower through the IP Box (80% deduction), Notional Interest Deduction, and 120% R&D super-deduction.
Dividend Withholding Tax
No withholding tax on outbound dividends in most cases. Defensive WHT of 5% applies to recipients in low-tax jurisdictions (ETR below 7.5%), and 17% to EU-blacklisted jurisdictions.
VAT
Standard rate on most goods and services. Reduced rates of 9% (hospitality, transport) and 5% (books, medicines, new residential construction) apply. Registration mandatory above €15,600 annual turnover.
Capital Gains Tax
Gains from disposal of shares, bonds, debentures, and similar securities are fully exempt. Gains on Cyprus immovable property are taxed at 20%. Crypto gains are taxed at a flat 8%.
Special Defence Contribution (SDC)
Applies to Cyprus-resident and domiciled individuals receiving dividends (reduced from 17% under the 2026 reform). Non-domiciled individuals (Non-Dom status) are exempt.
Formation Process
Collect beneficial owner and director identification, proof of address, and confirm shareholding structure and business purpose.
Submit proposed company name to the Department of Registrar of Companies and Intellectual Property (DRCIP) for approval.
Prepare and submit the Memorandum and Articles of Association and incorporation forms via a licensed Cyprus lawyer.
Receive Certificate of Incorporation, Certificate of Directors and Secretary, Certificate of Shareholders, and Certificate of Registered Office from the DRCIP.
Register with the Tax Department for a TIN (within 60 days), file with the UBO Registry, and finalise the digital corporate pack.
Pricing
Formation Package
$1,500
Annual Maintenance
$4,500/year
Add-ons
Form your Cyprus Ltd in Cyprus and have your entity ready in 8-12 business days.
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