Incorporate · Europe

Company Formation in Cyprus

Low-tax EU jurisdiction with an IP box and non-dom regime. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

Licensed CSP
50+ yrs combined experience
15+ jurisdictions

Corporate tax: 12.5%
VAT / GST: 19%
Formation: 1-3 weeks
Foreign ownership: 100% permitted
Tax treaties: 65+
Setup cost: USD 2,000 - 5,000

At a glance

Common entity: Private Company Limited by Shares
Formation time: 1-3 weeks
Setup cost: USD 2,000 - 5,000
Annual cost: USD 2,500 - 6,000
Foreign ownership: 100% permitted
Tax treaties: 65+

Holding companyIP and licensingFunds and investmentConsulting and servicesTrading

Best for

EU holding and IP structures
Non-dom founders relocating
Fund and investment vehicles

Less ideal for

Founders wanting zero tax
Those avoiding mandatory annual audits

Legal and formation

Legal system	Common law (English-derived)
Common entity types	Private Company Limited by Shares
Formation timeline	1-3 weeks
Minimum capital	None (typically EUR 1,000 nominal)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1 (Cyprus-resident directors advised for tax residency)
Local presence	Registered office and (for tax residence) local management required
Public registry	Directors and shareholders on the public register; beneficial owners on the UBO register
Audit	Annual audit required for all companies

Tax profile

Corporate income tax	12.5%
VAT / GST	19%
Withholding, dividends	0% to non-residents
Withholding, interest	0% to non-residents
Withholding, royalties	0% (10% on rights used in Cyprus)
Capital gains	Only on Cyprus-situated immovable property (20%)
Territorial system	No
CFC rules	Yes
Participation exemption	Dividend and capital-gains participation exemption; IP box gives an effective rate near 2.5%

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Cyprus

1
Apply for name approval with the Registrar of Companies
2
Prepare the memorandum and articles of association
3
Appoint directors, a secretary and (for tax residence) local management
4
File incorporation and register beneficial owners on the UBO register
5
Register for tax and VAT, then open a corporate bank account

Banking reality

Since the 2013 reforms banks apply strict KYC and are selective about non-resident and shell-type structures, so account opening requires solid documentation and often local substance.