- Entity type
- Private company limited by shares (Ltd)
- Corporate tax
- 15% (from 2026), non-doms 0% tax on dividends
- Setup cost from
- $1,500
- Setup time
- 1–3 weeks
- Minimum capital
- None (€1,000 typical)
- Local director
- Not required
- Remote formation
- Yes
- Residency visa
- Possible
- Banking
- Moderate
Best for: Entrepreneurs relocating within the EU who want an EU company, non-dom dividend benefits and access to tax treaties.
Advantages
- 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
Watch out for
- Corporate tax rose from 12.5% to 15% on 1 January 2026
- Tax residency requires real management and control in Cyprus
- Audited financial statements are mandatory for every company
How to set up a company in Cyprus
- 01
Reserve your company name
3–5 daysSubmit up to three names to the Registrar of Companies (form HE1). Standard approval costs about €10, expedited about €30.
- 02
Have a Cyprus lawyer draft the M&A
2–5 daysA Cyprus-licensed lawyer must prepare and sign the Memorandum and Articles of Association. You can sign by power of attorney without travelling.
- 03
Register the company
5–10 daysFile the M&A together with the registered office, directors and secretary forms. Registration fees start at around €105 depending on share capital.
- 04
Register for tax and VAT
1–2 weeksObtain a Tax Identification Number from the Tax Department. Register for VAT if turnover exceeds €15,600 or you provide services to other EU businesses.
- 05
File your beneficial owners
1–3 daysRecord ultimate beneficial owners in the Registrar's UBO register and keep it up to date.
- 06
Open a bank account and build substance
2–6 weeksOpen an account with a Cyprus bank or an EU fintech. To be tax-resident in Cyprus, hold board meetings there, have local directors or live there yourself, and keep an office.
Why Cyprus?
Cyprus offers an EU company with English-based common law, a non-dom regime that exempts dividends and interest from the Special Defence Contribution, and a sunny, English-speaking lifestyle. It is a favourite for founders who move there and pay themselves through dividends.
The 2026 tax reform
From 1 January 2026:
- Corporate tax 15% (was 12.5%)
- Special Defence Contribution on dividends for domiciled residents cut from 17% to 5%
- The deemed dividend distribution rule was abolished
- Stamp duty and the €350 annual company levy were abolished
- Non-doms can extend their SDC exemption beyond 17 years by paying a lump sum
Typical costs
| Item | Approx. |
|---|---|
| Name approval + registration | €115–200 |
| Lawyer / formation package | €800–3,000 |
| Annual audit + accounting | €1,500–4,000 |
| Local director (if needed) | from €1,500/year |
Is Cyprus right for you?
Cyprus works best if you move there and become a non-dom: company profits are taxed at 15%, and dividends reach you at 0%. Without real substance in Cyprus the company may be treated as tax-resident in your home country.
Every year
- Audited financial statements
- Corporate income tax return (IR4)
- Annual return to the Registrar (HE32)
- VAT and VIES returns if registered
- UBO register updates
Questions about Cyprus
What is the Cyprus corporate tax rate in 2026?+
15% for tax years starting 1 January 2026, up from 12.5%.
How are dividends taxed for non-doms?+
Individuals who are Cyprus tax-resident but not domiciled pay 0% Special Defence Contribution on dividends for up to 17 years, extendable for a fee. For domiciled residents the rate dropped to 5% on profits from 2026.
Do I need a local director?+
Not legally. But for the company to be tax-resident in Cyprus — and benefit from the treaties — it must be managed and controlled there. In practice that means local directors or you living in Cyprus.
Can I move to Cyprus through my company?+
Yes. Non-EU founders can relocate through a company with foreign interests or the business facilitation route; EU citizens simply register their residence.
General information, not legal or tax advice. Fees, rates and rules change. Check current figures with the official authority or a licensed adviser before acting. Disclaimer