Cyprus

Company Formation in Cyprus

Cyprus

Formation Time

5–10 business days

Min. Capital

€1,000 (recommended)

Corporate Tax

12.5%

Foreign Ownership

100%

Overview

Cyprus offers a compelling combination of low 12.5% corporate tax, an extensive IP box regime (effective 2.5% tax on qualifying IP income), EU membership, and a business-friendly common law-influenced legal system. It is particularly popular for holding companies, IP licensing structures, and international trading. The island's 65 double tax treaties and zero withholding tax on outbound dividends make it a keystone in many international corporate structures.

12.5% corp tax

2.5% IP Box

EU member

0% dividend WHT

Why Choose Cyprus

12.5% corporate tax — one of the lowest in the EU

IP Box regime — effective 2.5% on qualifying IP income

0% tax on dividends received from subsidiaries

0% withholding tax on outbound dividends

EU member state with Eurozone access

Common law-influenced legal system

65 double tax treaties

Non-domiciled tax status available for individuals

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Private Limited Company	100%	1	€1,000 (recommended)	12.5% corporate tax	Holding, IP, trading, consulting

Step-by-Step Formation Process

Name Approval

1–2 days

Submit name to the Registrar of Companies for approval.

Document Preparation

2–3 days

Draft Memorandum and Articles of Association.

Registration

3–5 days

File with the Registrar and receive Certificate of Incorporation.

Tax Registration

1–2 weeks

Bank Account

3–6 weeks

Open corporate bank account in Cyprus.

Costs & Fees

Government / License Fee	EUR 500+
Our Service Fee	USD 3,000+
Annual Renewal	USD 2,000+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Cyprus banking has improved significantly since the 2013 crisis. Bank of Cyprus and Hellenic Bank are the main domestic options. EMIs offer faster alternatives.

Account Opening Time

3–6 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Bank of CyprusHellenic BankEurobank CyprusRevolut Business

Tax Overview

Corporate Tax

12.5%

Personal Income Tax

0–35% (non-dom: exempt on dividends and interest)

VAT / Sales Tax

19%

Capital Gains Tax

0% on disposal of securities

Withholding Tax

0% on dividends, interest, and royalties (with planning)

Double Tax Treaties

65 countries

IP Box regime: 80% deduction on qualifying IP income = effective 2.5% rate. Non-domiciled individuals pay 0% on dividends and interest.

Frequently Asked Questions

What is Cyprus's IP Box regime?

Cyprus offers an 80% deduction on qualifying IP income, resulting in an effective 2.5% tax rate (12.5% × 20% = 2.5%). This applies to patents, copyrighted software, and other qualifying intellectual property. It is one of the most generous IP regimes in the EU.