Cyprus vs Hong Kong
Hong Kong has the lower headline tax (8.25%), and Hong Kong is cheaper to set up (from $1,200).Which is better depends on where you live and where your customers are.
| CYCyprus | HKHong Kong | |
|---|---|---|
| Entity | Private company limited by shares (Ltd) | Private company limited by shares (Ltd) |
| Corporate tax | 15% (from 2026), non-doms 0% tax on dividends | 8.25% on first HK$2m, 16.5% above — territorial |
| Setup cost from | $1,500 | $1,200 |
| Setup time | 1–3 weeks | 1–5 business days |
| Minimum capital | None (€1,000 typical) | HK$1 |
| Local director | Not required | Not required |
| Remote formation | Yes | Yes |
| Residency visa | Possible | Possible |
| Banking | Moderate | Difficult |
| Best for | Entrepreneurs relocating within the EU who want an EU company, non-dom dividend benefits and access to tax treaties. | Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system. |
Choose Cyprus if
Entrepreneurs relocating within the EU who want an EU company, non-dom dividend benefits and access to tax treaties.
- EU company with a wide double-tax treaty network
- Non-dom residents pay 0% Special Defence Contribution on dividends for up to 17 years
- IP box regime with a low effective rate on qualifying IP profits
Choose Hong Kong if
Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system.
- Low two-tier profits tax and a territorial system — offshore profits can be exempt
- No local director needed, 100% foreign ownership
- Fast online incorporation, often within a day