Cyprus overview

The Republic of Cyprus is a well-known jurisdiction among investors, bankers and business founders due to its efficient and modern regulation, accounting and banking services for every taste and purse, qualified staff and favourable tax regime approved by the OECD.

Advantages

Corporate tax (CT)

The corporate tax rate is 12.5%. The profit of the resident company is taxed in Cyprus, regardless of the place and sources of its formation. Non-resident companies are subject to corporate tax only on income received in Cyprus.

IP BOX Special Tax Regime

If a number of conditions are met, taxes in Cyprus can be optimized with a corporate tax rate of up to 2.5% if the Cypriot company profits from intellectual property (IP) ownership.

Such an interest rate is achieved due to the fact that 80% of the income received from ownership of intellectual property can be exempted from income tax, while 20% of the income from IP is taxable at a standard rate of 12.5%.

Benefits can be used provided that the Cypriot company participated in the creation of such intellectual property rights in Cyprus, and its main activities are related to such IP.

VAT registration

Registration under Cypriot law may be voluntary or mandatory.

Every person who meets two criteria is entitled to voluntary registration:

1. The Company provides services (supplies goods) outside Cyprus that would be subject to taxation if they were provided (supplied) in the territory of Cyprus;

2. The person has a business in Cyprus.

Mandatory VAT registration occurs when the Company achieves one of the following factors:

– The total volume of taxable deliveries exceeds 15,600 EUR;

– The total volume of taxable purchases exceeds 10,252 EUR;

– Since the beginning of the calendar year, the volume of remote sales to persons residing in the EU and not registered for VAT has exceeded EUR 35,000.

Business entity registration

Decide on the type of business you want to establish, whether it’s a limited liability company or a partnership

Choose a business name

Whether you’re pursuing national or international business activities, you must have a distinctive business name. To choose a name that will help with branding, but keep you compliant with regulations.

Apply to incorporate a company

To confirm the substance, there may be different criteria, the main ones

Corporate documents

When the company is registered, we receive a package of documents from the Registrar, which includes: