Cyprus at a glance
Cyprus is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Cyprus
- Ltd (private limited liability company) The standard Cyprus company under Companies Law Cap. 113: 1 to 50 shareholders, limited liability, with a registered office and a Cyprus-based company secretary.
| Corporate tax | 12.5% up to 31 December 2025, rising to 15% from 1 January 2026 (aligned with the OECD Pillar Two minimum). An IP Box regime can give an effective rate of around 2.5% to 3% on qualifying IP income. |
|---|---|
| VAT rate | Standard VAT is 19%, with reduced rates of 9% and 5%. The VAT registration threshold is around EUR 15,600. |
| Minimum share capital | No statutory minimum share capital; typically around EUR 1,000 is issued in practice. |
| Setup time | About 8 to 12 working days (name approval plus filing). A ready-made shelf company can be transferred in 24 to 48 hours. |
| Remote setup | Yes. Incorporation can be handled remotely with full KYC, but a physical registered office and a Cyprus-based company secretary are mandatory. |
| Director / residency | No legal residency requirement, but a majority of locally resident directors is strongly recommended so that management and control (and therefore tax residency) sits in Cyprus. |
| Banking options | Opening a bank account is a separate step and can take 2 weeks to 3 months; EMIs are often used alongside local banks. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Headline corporate tax rose from 12.5% to 15% on 1 January 2026. No withholding tax on outbound dividends to non-residents, no capital gains tax except on Cyprus real estate, and English common-law-based company law. Annual audit is mandatory.
How to register a company in Cyprus
The process is straightforward and, in Cyprus, largely digital. In outline:
- Choose your company type and name. Most founders pick the Ltd (private limited); we confirm the name is available.
- Verify your identity. Yes. Incorporation can be handled remotely with full KYC, but a physical registered office and a Cyprus-based company secretary are mandatory.
- File the incorporation. Once documents are signed, registration usually completes in around 8-12 days.
- Open a business account and register for tax/VAT. Opening a bank account is a separate step and can take 2 weeks to 3 months; EMIs are often used alongside local banks.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
Form your Cypriot company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Cyprus, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Cyprus
Founders from outside the EU can own and run a Cypriot company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Cyprus up front, so there are no surprises.
Cyprus and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Cypriot company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Cyprus against other countries, see company formation in Europe.