Company Registration Cyprus

Why Set-up Business in Cyprus?

The Cyprus tax system, combined with the island’s infrastructure, highly skilled workforce and membership of the European Union contributes to making Cyprus an attractive jurisdiction for setting-up business operations.

The aspects of Cyprus’s advantageous tax system worth highlighting include:

  • Corporate income tax rate of 12.5%, one of the lowest in the European Union.
  • Dividends paid to non-resident shareholders are exempt from tax in Cyprus.
  • No tax arises on the liquidation of a Cypriot company owned by non-resident shareholders, despite the method of liquidation.
  • Cyprus companies are entitled to a notional interest deduction (NID) upon the introduction of new equity.
  • Dividend income received by a Company is exempt from tax irrespective of its source provided that the company paying the dividend either (i) engages directly or indirectly in more than 50% of activities that give rise to non-investment income or (ii) the tax burden on the dividend paying company’s income is not lower than 6.25%.
  • Any gain derived from the disposal of securities is tax exempt. By securities we refer to shares, bonds and debentures.

Errors to Avoid

Despite all of the benefits, Companies in Cyprus can come unstuck, usually as a result of the the fact that they are not made aware on time that they are:

  1. Required to submit an annual corporate income tax return;
  2. Required to prepare annual financial statements in Greek and
  3. A Company annual return must be submitted to the Registrar of Companies.

Failing to submit the above on time leads to fines and penalties.

Another common issue is that private limited companies incorporated in Cyprus are not made aware on time that they can have one shareholder who can also be the manager or an employee of the Company. This lack of knowledge leads to unnecessary expenses as the Company may employ personnel to perform a duty which can be done by an existing personnel.

Related Services

4 Lawyers Offering Services in Cyprus

Testimonials for Business Services
  • Monica Chitnis
    Monica Chitnis, Barcelona

    Raffaele went out of his way to make sure I solved all my problems in the most cost-effective way possible. He also takes full responsibility for doing a great job and making sure the client is happy.

    Aug 26, 2019
  • Bryan Wilson
    Bryan Wilson, Mallorca

    Rosa has been an absolute Godsend and without her I would have struggled to set up my Mallorcan company.

    She has always delivered with any project that I have instructed her services on and I would highly recommend her.

    Apr 03, 2019
  • Andrea OMahony
    Andrea Omahony, Murcia

    Inma was fabulous. She was extremely professional and she answered any questions efficiently and accurately.

    Apr 01, 2019
  • Lara
    Lara, Turin

    My contact in Italy, Ilaria, was SO helpful and responsive. 100%recommend

    Jan 04, 2019
  • Nick Nicolaou
    Nick Nicolaou, Oviedo

    Very Satisfied with Miguel's work. He was very helpful and we would definitely use his services again in the future.

    Feb 20, 2018
  • Gavin Jones
    Gavin Jones, UK

    It was a real pleasure to have Miguel working on my behalf to file my non-resident taxes. He was extremely helpful, gave reassuring advice and I had a high level of confidence in the transactions.

    Miguel is now acting as my fiscal representative in Spain and I plan to continue to use his firm's services for all my tax requirements.

    Feb 19, 2018
  • Alan Villarreal
    Alan Villarreal, Banyoles

    Very satisfied with Anna's work. She is bilingual and was extremely helpful. Will definitely use her services in the future.

    Dec 15, 2017
  • Anthony Bennett
    Anthony Bennett, Barcelona

    Anna provided the best possible solution for me in my situation, and helped out as much as she possibly could.

    I would recommend her services to anybody seeking legal or financial advice.

    Oct 19, 2017
  • Robert Toth
    Robert Toth, Ireland

    Anna was very, very helpful, always happy to assist and also approachable and professional.

    I was very satisfied with the legal services.

    Feb 09, 2017
  • LP
    LP, Tenerife

    We used Rossana’s services multiple times after the first contact. She is always there when we need support, even for things that are not directly related with the services she was in charge of.

    Her charges are always very reasonable.

    Dec 06, 2016
  • P.T.
    P.T., Benalmadena

    All tax returns are handled online, so I don't need to go anywhere to accomplish my tax obligations in Spain. Although the service is provided mainly by internet, Jaime met me when necessary, and I can always contact quickly him or his team by phone, email, skype and even whatsapp.

    Jaime and his team have been really helpful during the setting-up process of my business.

    Jan 15, 2015
  • Hanna
    Hanna, Tarragona

    Since I am a foreigner, I can’t speak Spainish. My law firm provided me two lawyers – one speaks English very well and the other one is the expert in my case.

    They answered me very quickly, and handle my case in a very efficient way. Cannot find a better lawyer in Tarragona.

    Mar 29, 2014
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