Companies in Cyprus

Having your own company in Cyprus will allow you to work and conduct business in an economically stable and prestigious jurisdiction with access to the international market, legally minimize taxes and obtain a long-term residence permit for the whole family.

There are no restrictions on opening a company in Cyprus for foreigners. In order to register your company in Cyprus, you need to go through the registration procedure: obtain a foreign tax number, select and register a company name; open a bank account and deposit the authorized capital; have a legal address; appoint a director; register a company with state and tax authorities.

The current corporate tax in Cyprus is 12.5%

For companies in the field of intellectual property, there is a special tax regime IP BOX, which allows you to reduce corporate tax to a rate of 2.5%.

In order to open a bank account in Cyprus, you need to go through the following procedure:

• Choosing a Cypriot Bank
• Collection and preparation of documents for opening a bank account
• Obtaining prior approval from a Cypriot bank
• Signing bank questionnaires and forms
• Interview with a bank representative and sending signed forms to the bank
• Access to online banking and receiving a bank card

To set up your company in Cyprus, you need:

• determine the business structure and choose the appropriate organizational and legal form of the company
• reserve a trade name for a company
• prepare the necessary documents, provide a professional and financial business profile of the beneficiaries
• availability of the legal address of the registered business
• appoint a director
• register a new company with state and tax authorities
• open a corporate account in a Cypriot bank and deposit the share capital

Cyprus attracts many companies with its low corporate tax rates and affordable incentives that allow legal tax optimization.

Basic taxes for companies in Cyprus:

• The corporate tax rate is 12.5%.
• The standard VAT rate in Cyprus is 19%. However, the effective rate can be 9% or 5%, depending on the type of activity and the company’s turnover.
• Employer Contributions in Cyprus: The employer pays around 14.9% of employees’ salaries.
• Tax on dividends in Cyprus – 0%
• Capital gains apply only to profits attributable to immovable property located in Cyprus – 20% rate.

Yes, personal presence is not required to register a company in Cyprus.

The most popular business structures for registering a company in Cyprus are:

• Individual entrepreneur
• Private Limited Company (LTD)
• Branch of a foreign company
• Cyprus Trust

Opening a company in Cyprus is the basis for business immigration. However, just a registered company is not enough. To obtain a residence permit, you must also carry out business activities, have an office, a place of residence in Cyprus and a confirmed stable income.

Under certain legal conditions, an entrepreneur and his family can obtain a residence permit in Cyprus and take advantage of all the benefits that reside in an EU country.

Also, when investing in Cypriot companies in the amount of 300,000 euros, you can get unlimited permanent residence in Cyprus for the whole family.