Worldwide
Setting up a company in Cyprus
12.5 percent corporate tax inside the EU, no withholding on dividends, an IP box. The bridge for Turkish founders entering Europe.
At a glance
Corporate tax
12.5%
Dividend withholding
0% to non-residents
IP box
Effective 2.5%
Incorporation
5 to 10 working days
The Republic of Cyprus offers, inside an EU member state, 12.5 percent corporate tax, zero withholding on dividends paid abroad, no capital gains tax on the sale of non-Cyprus assets and an IP box regime that brings the effective rate on IP income down to 2.5 percent. Company law is based on English law and there are more than 65 double tax treaties.
The critical point is substance: a company that cannot show management and control in Cyprus loses treaty benefits and residency. A local director, an office and real decision making are part of the design; the Turkish controlled foreign company rules must be read alongside.
Why here
When this jurisdiction is the right choice.
- An EU passport: free movement of goods, services and capital.
- Low corporate tax and a wide treaty network.
- Personal tax planning for the founder through the non-dom regime.
- Familiar company law rooted in English law.
Entity types
Which structure, for whom.
Private Limited (Ltd)
The standard form; up to 50 shareholders, limited liability, restricted share transfer.
Public Limited
Company that can list; minimum capital and at least seven shareholders.
Branch
Cyprus branch of a foreign company.
Process
Formation step by step.
- 01Name approval (Registrar of Companies)
- 02Memorandum and articles; certification by a Cyprus lawyer
- 03Director, secretary and registered office
- 04Registry filing and certificate of incorporation
- 05Tax identification and VAT registration where needed (19%)
- 06Social insurance registration
- 07Bank account
- 08Beneficial ownership register filing
After formation
What has to happen every year.
- Annually audited IFRS financial statements
- Annual return (HE32) and annual levy
- Corporate tax: provisional and year-end returns
- Beneficial ownership register kept current
Frequently asked
The in-country registry, licence and agent steps of the formation file run through our licensed formation partners in the relevant jurisdiction. Structure design, contracts, the bank file and the tax and notification effect on the Turkish side are managed by Defensible. Rates and thresholds summarise the headline rules at the time of writing; we check the current text together on your own file.
Can a Cyprus company be managed from Türkiye?
It can, but then it is not Cyprus resident and the benefits fall away. For treaty benefits decisions must be taken in Cyprus; the local director and board meetings exist for this.
Let's work out which structure fits you in 15 minutes.
Tell us where you sell, who you are and what you are aiming at; we will say in the call which jurisdiction and entity type make sense. Formation itself is a separate engagement, scoped and priced there.
Book a 15-minute call