Cyprus is considered without a doubt the most strategic territory in Europe, and in some respects the whole world. The 12.5% tax on corporate profits is only one of the advantages of this jurisdiction. British-style legislation on Trusts and the wide spread use of foreign-owned companies make trust management and shareholding flexible and available to all. Companies in Cyprus can be registered in a few days, fulfilling tax burden, including VAT, within two to three days of establishment.

A recent amendment eliminated personal tax on corporate dividends; as a result, those who transfer their residence to Cyprus for business reasons may fall into this privileged category and pay a total amount (including personal and corporate taxes) ranging from 2.5% to 12.5 %. The island of Cyprus has entered into double taxation treaties with 27 other countries, including many countries with high rates in Western Europe, and many Central and Eastern European states. Cyprus is an island with low rates of taxation, and as such is a particularly strategic destination for firms catering to emerging markets. Additionally, the economy is strong and stable, and business costs are generally low.

If a Cypriot company is to be established, any private company based in Cyprus that is 100% foreign-owned is considered offshore, although it is also identified by the term International Business Company (IBC). In any case, there is no difference in tax treatment between an offshore company and a normal Cypriot company.

Limited Liability Company

  • No minimum capital required
  • The number of partners can range from 1 to 50
  • The company must have at least two directors
  • The annual accounts must be filed in Greek and verified

Branch

  • The foreign parent company is liable for the commitments made by the branch
  • The branch must be registered with the Chamber of Commerce
  • The annual accounts must be filed in Greek

Partnership (LLP)

  • General partnership: between two and twenty members
  • At least one partner must have unlimited liability
  • It must be registered with the Chamber of Commerce
  • Establishing a company in Cyprus does not require certified financial statements, but proper accounting books are required

CYPRUS

Cyprus Flag
Average start-up times 8 days
Availability of pre-established (ready-made) companies) Yes
Accounting Yes
Secretary Yes
Nominee Shareholder Yes
Nominee Director Yes
Average taxation 10%
Published information about the company's directors At the time of registration, the names of partners will appear in the Business Register; however nominee (figurehead) service providers are available.
Accounting obligations Annual
Legislation and controls

Cypriot businesses are regulated under the Cyprus Companies Law, Chap.113 and the Cyprus Lawyers' Order is the reference authority.

Confidentiality Bearer shares are not permitted
Documents required
  • certified copy of passport or ID
  • residence certificate dating back less than 3 months
Time Zone UTC+2
Currency Euro
Risk indicators Average political risk: 21%
  • Expropriation and breaches of contract: 27%
  • Risk of war and civil unrest: 25%
  • Transfer of capital and convertibility: 11%
Average credit risk: 61%
  • Failure to pay by sovereign counterpart: 50%
  • Failure to pay by bank counterpart: 67%
  • Failure to pay by corporate counterpart: 67%
GDP growth 2,8%