CyprusCompanyFormation.
Cyprus company formation, structured end to end by Sovera. An EU member state with a 15% corporate tax rate from 2026, a ~3% effective IP Box, 65+ double-tax treaties and 0% withholding tax on outbound dividends — a credible, treaty-rich base inside the European single market.
Cyprus company formation at a glance.
Structure, cost, timeline, tax position and obligations of a Cyprus company formation — at a glance, no jargon.
An EU base, built for structuring.
Key advantages of Cyprus company formation for founders, holding structures, IP owners and technology ventures expanding through the European Union.
A full EU member state
Cyprus is in the European Union and the eurozone. A Cyprus company trades inside the single market, accesses the EU Parent-Subsidiary and Interest & Royalties Directives, and carries the credibility of an onshore, EU-regulated jurisdiction — not an offshore label.
15% corporate tax — with real exemptions
From 2026 the corporate rate is 15% (raised from 12.5% to meet the OECD global minimum), yet the substance of the regime is intact: 0% on most dividend income, no withholding tax to non-residents, and broad participation exemptions. Competitive, and now reputationally clean.
~3% effective on qualifying IP
The Cyprus IP Box applies an 80% deduction to qualifying IP income, leaving an effective rate of roughly 3% on net qualifying profit. It is OECD nexus-compliant (BEPS Action 5) and unaffected by the 2026 reform — one of the most attractive IP regimes in the EU.
65+ double-tax treaties
Cyprus has concluded more than 65 double-tax treaties, including with most of the EU, the UK, the US, India, China and the Gulf. Combined with the EU directives, the network allows dividends, interest and royalties to flow with little or no withholding tax.
The Non-Dom regime
Individuals who relocate can claim non-domiciled status for 17 years, with no Special Defence Contribution on dividends, interest or rent. Paired with a Cyprus company, founders can draw dividends at a very low personal tax cost — a genuine relocation advantage.
English-based common law →
Cyprus company law descends from English common law, so the concepts — shares, directors' duties, trusts — are familiar to international counsel and lenders. Incorporation is fast (7–10 days) and the working language of business is English.
Best suited for
Cyprus is a structuring jurisdiction. These are the six profiles for which a Cyprus company is most often the right vehicle.
Holding & family office
The classic Cyprus use case — an EU holding company owning shares, IP or regional assets, with participation exemptions, 0% withholding tax on outbound dividends and 65+ treaties.
Holding companyIP & royalty owners
Software, patents and brands held in a Cyprus IP company benefit from the IP Box — roughly a 3% effective rate on qualifying income, fully OECD nexus-compliant.
IP Box companyEU trading & e-commerce
An EU VAT-registered Cyprus company invoices across the single market cleanly, with VIES registration and EU-wide distance-selling handled as part of setup.
Ltd + VAT / VIESFunds & asset management
Cyprus is a growing EU funds domicile (AIF and RAIF vehicles). The operating or management entity sits in a Cyprus company; the regulated fund itself is licensed separately by CySEC.
Management companyCrypto & Web3
Token and Web3 ventures use a Cyprus company as an EU base, with clear 8% crypto-disposal tax rules from 2026. Regulated activity falls under the EU MiCA / CASP regime, licensed by CySEC.
Ltd + MiCA pathwayRedomiciling companies
Moving an existing offshore or foreign company into the EU? Cyprus permits continuation, so an eligible company can redomicile here while preserving its legal identity and trading history.
Ltd (continuation)See your exact cost
in under a minute.
Fixed-price engagement. No hidden fees. Instant estimate, full written quote within twenty-four hours.
Four routes, precisely scoped.
Each setup route below is one we actively structure, register and maintain in Cyprus. Government and third-party costs are itemised separately and passed through at cost.
Private Limited Company (Ltd) →
The standard Cyprus vehicle — a private company limited by shares, one to fifty shareholders, 100% foreign ownership and full EU standing. Suits trading, consulting, e-commerce and most operating businesses.
Holding Company →
A Cyprus Ltd structured to own shares, IP or assets — participation exemption on qualifying dividends and share disposals, and 0% withholding tax on dividends paid out. The EU holding workhorse.
IP / Royalty Company →
A Cyprus Ltd operating the IP Box — an effective rate of roughly 3% on qualifying income from software, patents and brands, structured to the OECD nexus standard with the supporting substance.
Branch of a Foreign Company →
A branch of an existing overseas company — the same legal entity registered in Cyprus, not a new one. Ideal for established businesses extending into the EU without creating a separate shareholding.
Formation requirements
Three straightforward pillars. Nothing onerous, nothing opaque. A full checklist is issued the day you engage.
Eligibility & applicant
- Individual or corporate shareholders accepted — any nationality, resident anywhere.
- Minimum age 18. Clean background; no adverse regulatory history.
- Not a national or resident of a FATF high-risk or sanctioned jurisdiction.
- Source of funds must be lawful, documented and verifiable.
Politically Exposed Persons are not excluded but require enhanced due diligence.
Document checklist
- Passport copy — valid at least six months, for every shareholder, director and UBO.
- Proof of address — utility bill or bank statement dated within three months.
- Bank or professional reference for each beneficial owner.
- Short CV or business background for each individual.
- Corporate shareholders: apostilled incorporation documents, board resolution and group structure to the UBO.
- Three proposed company names, in order of preference, for Registrar approval.
Documents in English are accepted; other languages require certified translation.
Corporate minimums
- One director minimum — a Cyprus-resident director is recommended to fix tax residency through management and control.
- One shareholder minimum — individual or corporate; up to fifty. Nominees available.
- Company secretary and a registered office in Cyprus are required.
- No statutory minimum capital — ~€1,000 issued is the working convention.
- 100% foreign ownership — no local shareholder or partner required.
We can provide the registered office, secretary and a resident director as part of the engagement.
Tax overview
From 2026 Cyprus charges a 15% corporate tax rate (raised from 12.5%), but the exemptions that made it a structuring hub — the IP Box, participation exemption and 0% dividend withholding — remain intact.
Under the Income Tax Law as amended by the 2026 reform, the standard Cyprus corporate income tax rate is 15% from 1 January 2026, up from 12.5%, aligning Cyprus with the OECD Pillar Two global minimum. The increase removed the low-tax label without dismantling the regime beneath it.
Qualifying income under the IP Box still benefits from an 80% deduction, giving an effective rate of roughly 3% on net qualifying IP profit. Dividends and gains on shares are broadly covered by the participation exemption, and Cyprus levies no withholding tax on dividends, interest or royalties paid to non-residents.
The 2026 reform also abolished deemed dividend distribution on new profits, cut the Special Defence Contribution on dividends from 17% to 5%, abolished stamp duty, and introduced a flat 8% tax on crypto-asset disposal gains. VAT is 19%, and audited financial statements are required. We structure the entity and its substance so the position is defensible from day one.
Roughly 3% effective tax on qualifying IP income after the 80% IP Box deduction; 15% standard corporate rate otherwise.
| Category | Applicable rate |
|---|---|
| Corporate income tax — standardFrom 1 January 2026 (was 12.5%) | 15% |
| IP Box — qualifying incomeEffective rate after 80% deduction | ~3% |
| Withholding tax to non-residentsDividends, interest, royalties | 0% |
| Dividends & share gainsParticipation exemption, conditions apply | Exempt |
| Crypto-asset disposal gainsFlat rate from 2026 | 8% |
| Value-added tax (VAT)Standard rate; reduced rates apply | 19% |
| Double-tax treatiesPlus EU directives | 65+ |
Summary is indicative and not tax advice. Your position depends on your activities, substance and residency; we work alongside qualified Cyprus tax advisers on every engagement.
Cyprus vs other EU options.
For an EU base, Cyprus is most often weighed against Malta, Estonia and Ireland — and against the UAE for founders comparing onshore-EU with a 0% Gulf base. Verified against current legislation and 2026 rates.
| Jurisdiction | Setup cost | Timeline | Annual | Tax | Public reg. | Min capital | Banking | Crypto | Best for |
|---|---|---|---|---|---|---|---|---|---|
| Cyprus | $4,500 | 7–10 days | from $2,500 | 15% / ~3% IP | Public | ~€1,000 | Tier-1 EU | MiCA / CySEC | EU holding, IP, trading, crypto |
| Malta | $5,500 | 2–4 wks | from $3,000 | 35% / ~5%* | Public | €1,165 | Tier-1 EU | MiCA / MFSA | iGaming, holdings, shipping |
| Estonia | $2,500 | 3–7 days | from $1,500 | 0% / 22% dist. | Public | None | EMI-led | MiCA / FIU | Digital, e-residency, SaaS |
| Ireland | $3,500 | 1–2 wks | from $2,000 | 12.5% trading | Public | €1 | Tier-1 | Limited | Tech, US-EU HQ, IP |
| UAE (DMCC) | $6,500 | 12–20 days | from $5,500 | 0% / 9% | Non-public | AED 50k | Tier-1 | Crypto Centre | Trading, 0% base, privacy |
Cyprus is the EU all-rounder — the strongest blend of a real corporate-tax regime (15% with a ~3% IP Box), 65+ treaties, English-law familiarity and EU standing, which is why it anchors so many holding and IP structures. Malta suits iGaming and uses a refund system for a ~5% effective rate; Estonia is leanest and fully digital but taxes distributions; Ireland is the choice for US-EU tech headquarters; and the UAE is the route when a 0% base and privacy outweigh EU membership. *Malta's 35% headline falls to ~5% after shareholder refunds.
For the full side-by-side, read our Cyprus vs Malta vs Ireland comparison, or see where Cyprus ranks among the top European jurisdictions for company formation.
Build your engagement.
Select your structure and optional services. The estimate updates in real time.
Your engagement, step by step
From first enquiry to an incorporated company, tax registrations and a bank account, the typical Cyprus engagement runs three to six weeks.
Configure & confirm engagement
You select your structure, we issue a fixed-fee engagement letter with every government cost itemised, and you confirm. No surprises later.
KYC & document collection
We send a precise checklist and collect passports, proof of address, references and corporate documents, running compliance and confirming your activity.
Name approval & filing at the Registrar
We obtain name approval from the Registrar of Companies, draft the Memorandum and Articles, and file the incorporation application in Nicosia.
Incorporation & corporate kit
The Registrar issues the certificates of incorporation, directors, shareholders and registered office — the company legally exists and can contract.
Tax, VAT & bank account
We register the company for tax and, where needed, VAT and VIES, file the UBO, and make introductions to our Cyprus banking and EMI partners.
Handover & annual compliance
You receive the full corporate kit and a calendar of the annual return, audited accounts and tax deadlines. We manage the annual cycle if you wish.
Operational details, in plain language.
Documents delivered
Eight core documents, electronically and apostilled on request, that constitute your Cyprus company.
Certificate of Incorporation
Issued by the Registrar of Companies, evidencing the legal existence and registration number of your Cyprus company — the document banks and counterparties ask for first.
Memorandum & Articles
The constitutional documents defining the objects, share capital, ownership and governance of the company, drafted to your structure.
Certificate of Directors & Secretary
The Registrar's certificate (form HE) confirming the appointed director(s) and company secretary of record.
Certificate of Shareholders
The Registrar's certificate listing the registered shareholders and their holdings — nominee arrangements reflected where used.
Certificate of Registered Office
Confirmation of the company's registered office address in Cyprus, as filed with the Registrar.
Share Certificate(s)
Original signed share certificates for every shareholder, reflecting the issued capital of the company.
Statutory Registers & UBO
Registers of members, directors and charges, plus the ultimate beneficial owner filing maintained for the company.
Board Resolutions & Kit
First board resolutions, company seal and the complete corporate kit, electronically and in original.
Banking infrastructure
Three tiers of EU banking and payment partners. We make warm introductions; the bank makes the final decision, and increasingly expects genuine substance behind the company.
Bank of Cyprus, Hellenic & Eurobank
Established Cyprus and EU banks — Bank of Cyprus, Hellenic Bank, Eurobank Cyprus and AstroBank. Full SEPA and euro settlement; expect compliance review and a preference for local substance and a resident director.
EU EMIs & fintechs
Wise Business, Revolut Business, Payhawk, Paysera and Bunq. Faster onboarding and multi-currency IBANs for international and online businesses, often fully remote.
PSPs & merchant acquiring
Stripe, Checkout.com, Viva Wallet and crypto on/off-ramps. Card acquiring and settlement for e-commerce, SaaS and Web3 ventures inside the EU.
Regulatory framework
Company formation in Cyprus is administered by the Department of Registrar of Companies and Intellectual Property (DRCOR) in Nicosia, the registrar of all Cyprus companies. Investment firms, funds (AIF / RAIF) and crypto-asset service providers are licensed separately by the Cyprus Securities and Exchange Commission (CySEC).
Companies operate under the Companies Law, Cap. 113 — a statute derived from English company law — together with the Income Tax Law as amended by the 2026 tax reform.
Taxation is administered by the Cyprus Tax Department under the Ministry of Finance, including corporate income tax, the IP Box, VAT and the Special Defence Contribution.
As an EU member, Cyprus applies the EU Anti-Money-Laundering Directives, maintains a central ultimate beneficial owner (UBO) register, and participates in the OECD Common Reporting Standard (CRS) and EU DAC for the automatic exchange of financial-account information.
Ongoing compliance
Formation is one cost; holding the company each year is another. Here is the full annual picture, with nothing hidden.
| Annual obligation | Due | Typical cost |
|---|---|---|
| Registered office & secretary | Annual | from $1,200 |
| Annual return (form HE32) | Annual | from $400 |
| Accounting & bookkeeping | Annual | from $1,500 |
| Audited financial statements | Annual | from $1,900 |
| Corporate tax return (TD4) | 15 months after year-end | from $600 |
| VAT & VIES returns (if registered) | Quarterly | from $600 |
| UBO register confirmation | Annual | Included |
| Cyprus-resident director (optional) | Annual | from $2,400 |
Anonymised, but characteristic.
Frank answers to fair questions.
For founders who prefer paper to pitches.
Complete the form below. We respond within twenty-four hours with a dated, priced and signed proposal. No marketing call. No sequence.
Republic of Cyprus
United Arab Emirates
Ready to see it in writing?
A dated, signed, line-itemised proposal in your inbox within twenty-four hours.