Telephone Numbers
Telephone Numbers
For detailed information +90 542 381 3868'Call.
Author: Turgut Akkuş, International Finance & Tax Consultant
The Republic of Cyprus is one of the most attractive jurisdictions for entrepreneurs thanks to its European Union membership, a competitive 15% corporate tax rate and more than 65 double-tax treaties. This guide walks you through company formation in Cyprus step by step: the required documents, up-to-date tax rates, costs and corporate banking, all aligned with 2026 legislation. Note: this article covers the EU member Republic of Cyprus; procedures in Northern Cyprus differ.
⚠️ Data Notice: The rates, taxes and cost (amount) figures on this page were prepared for July 2026 and may change over time. Before making any binding decision, we recommend verifying the latest amounts and rates on the official institutions' websites (companies.gov.cy and mof.gov.cy).
The Republic of Cyprus serves as a gateway to the common EU market and is one of Europe's most favourable business environments. Whether you are starting from scratch or expanding an existing business, the key benefits include:
Effective 1 January 2026, the corporate income tax rate in Cyprus increased from 12.5% to 15%, in line with the OECD global minimum tax (Pillar Two). The table below summarises the key rates:
| Tax / Item | Rate (2026) | Note |
|---|---|---|
| Corporate Income Tax | 15% | Was 12.5% until 31 Dec 2025 |
| Standard VAT | 19% | Reduced rates: 9%, 5%, 0% |
| IP Box (intellectual property) | ~3% | Effective rate after 80% exemption |
| Gains on sale of securities | 0% | Including shares, not taxable |
| Annual company levy (€350) | Abolished | From the year 2024 onwards |
In addition, gains from the sale of securities, group reorganisations and profits of a foreign permanent establishment are tax-exempt under certain conditions. Under the 2026 reform, companies incorporated in Cyprus are deemed Cyprus tax residents unless managed and controlled abroad.
Holding structures, e-commerce and SaaS start-ups, consultancy firms, businesses owning intellectual property (IP) and companies wishing to access the EU market benefit particularly from a Cyprus structure. Its geographic position bridges Europe, the Middle East and Africa, while its common-law-based legal system offers international investors a familiar and predictable environment.
Although Cyprus is a favourable jurisdiction, some points deserve attention. Shareholder and director details appear in the public records of the Registrar of Companies, so investors seeking full anonymity may consider nominee services. When opening a corporate bank account, banks apply thorough due diligence, and the involvement of a local service provider simplifies the process. Because some government procedures are conducted in Greek, working with a local advisor helps international owners avoid misunderstandings.
Selecting the right entity, preparing complete documentation and planning tax residency determine how efficiently the process runs in terms of time and cost. An experienced advisor manages every step end to end – from name approval to bank account opening, from accounting setup to the annual compliance calendar – minimising delays and potential errors. This lets you focus on your operations while your company is incorporated and run in full regulatory compliance.
The most common structure. There is no minimum share capital requirement, the number of members is capped at 50, and liability is limited to the nominal value of the shares. Most international entrepreneurs choose this form.
Requires a minimum capital of roughly €25,629, at least 7 shareholders, with no upper limit on members; shares are freely transferable.
General, limited and limited-liability partnerships (LLP) are available. Sole traders suit those running a business alone, while international trusts are used for tax planning. Foreign companies may also open a branch, representative office or subsidiary.
Under the 2026 reform, companies incorporated in Cyprus are deemed Cyprus tax residents unless managed and controlled abroad. To fully benefit from treaty advantages and reduced rates, it is advisable for the company to maintain genuine economic substance in Cyprus, such as a local director, office and decision-making. Reduced or zero rates apply to specific items including gains on the sale of securities, group reorganisations and profits of a foreign permanent establishment under certain conditions.
Choosing the company name is one of the first and most critical steps of the registration process. The name must be approved by the Registrar of Companies and may be rejected if it is identical or too similar to an existing entity, if it is too generic, descriptive or misleading, or if it implies a non-existent official or national connection. Terms such as "bank", "insurance" or "financial services" may only be used by entities registered with the relevant regulator. Foreign-language names are permitted in the Latin alphabet provided a translation is supplied. Limited company names must end with "Ltd" and public companies with "PLC".
For tax registration, Form 162 (TIN) and Form 101 (VAT) are required.
The estimated costs below vary by service provider and the scope of work:
| Item | Estimated Amount |
|---|---|
| Company registration fee (Registrar) | ~€650 |
| Formation service (documents, filing, secretary, address) | ~€1,500 – €3,500 |
| Registered office (annual) | ~€350 / year |
| Accounting & audit (annual, starting) | from €1,200 + VAT |
| Registration time | ~10 – 15 business days |
Every company needs a corporate bank account to collect and make payments. As part of the KYC process, you must submit the Memorandum and Articles of Association, the certificate of incorporation, shareholder/director certificates, the registered office certificate and identity plus address proof for all signatories. The process can be started online without visiting the country. See our guide on the best countries to open a company in Europe to compare alternative EU jurisdictions.
With EU membership, a competitive 15% corporate tax rate and a robust legal framework, the Republic of Cyprus remains a safe harbour for international investors. To choose the right structure and run the process smoothly, contact our expert team or request a quote.
The Republic of Cyprus is one of Europe’s most attractive environments for company formation, offering EU membership, a 15% corporate tax rate and more than 65 double-tax treaties. Whether you start from scratch or expand an existing business, the process is fast and advantageous.
<p>As of 1 January 2026 the standard corporate income tax rate is 15% (it was 12.5% until 31 December 2025). The change was made in line with the OECD global minimum tax.</p>
<p>From name approval to receiving the official documents, the process usually takes 10 to 15 business days. Preparing complete documentation speeds it up.</p>
<p>No. The €350 annual company levy has been abolished from 2024 onwards. A liability may only remain for the past years 2011–2023.</p>
<p>No. You can incorporate and manage your company remotely via power of attorney and start the bank account opening process online.</p>
<p>For a private limited company, one shareholder and one director are sufficient. A company secretary and a registered office address in Cyprus are also mandatory.</p>
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