Cyprus Tax


Looking for an international business structure?

We are able to support you with the legalities of this process in order to smoothen your experience.

Cyprus has a long standing history of an international business centre due to its strategic position in the crossroad between Europe, Africa and Asia, favourable taxation system, solid legal infra-structure, efficient administration and the competitive incorporation benefits.

Cyprus is suitable for intermediary company due to the Island’s double taxation treaties and low-tax regime.

We can help you with a legal advice and assistance to clients wishing to register any Cyprus International Business Entity in order to benefit from the tax incentives as well as the network of Double Tax Treaties.

In order to establish a Cyprus company acting as an International Business Activities Company the following are required:

  • Successful Completion of the Due Dilligence procedure
  • Approval by the Registrar of Companies of the proposed name of the company
  • A brief description of the main purposes of the company.
  • The amount of the nominal capital of the company, and how it is going to be divided. (This is usually €1000,00 divided into 1,000 shares of €1.00 each. It is also possible to denominate the capital in a currency other than Euro.
  • The names, passport details, dates of birth, addresses, occupations and nationalities of the proposed beneficial shareholders as well as the proportion in which they will hold the shares of the company.
  • The names, passport details, date of birth, addresses, occupations and nationalities of the proposed directors and secretary of the company.
  • The proposed address of the registered office of the company in Cyprus.

A Cyprus Tax Resident company is charged only 12.5% corporate tax. However, for a company to be considered as Tax Resident in Cyprus needs to show to the Tax Authorities that the management and control of the company is effected in Cyprus. In order to achieve that a company must fulfil certain criteria:

  • The majority of the directors must be of Cypriot citizenship and/ or
  • The general, annual and board meetings as well as the decisions and the supporting minutes must take place in Cyprus.
  • Non-resident Cyprus Companies are taxed at 0% annually, but do not have the benefit of Double Tax Treaties.

Foreigners who do not wish to appear as registered shareholders may appoint nominees to act for them as registered shareholders, whilst the actual ownership shall always rest with the non-resident beneficial owners of the shares. It is the practice to appoint the firm which undertakes the formation of the Company to settle the nominee shareholding through its members or through companies fully controlled by it. We can help you with provision of nominee shareholders, directors, secretary and registered office, if requested.

The main characteristics of a Cypriot private company limited by shares, whether it has a local or an international activity or both may be summarized as follows:

  • The tax levied on the International Business Company’s net profit is of 12.5%, Company accounts must be kept (in Euro or US Dollar) and audited annually.
  • There are 3 main non-resident bank accounts in Cyprus or abroad, in Euro or $US Dollar and our law office can assist you in opening one:
    • The External account, operated in local currency, convertible anytime with no interest paid
    • The Foreign currency account, operated in chosen currency with commission
    • The Special account, operated in local currency, to ease local transactions for non-residents

Our annual retainer fee covers all the services we provide to the company during the year, except for items of a truly extraordinary nature, which we would only charge separately if the clients specifically agree to this. Actual disbursements are charged extra.


In addition to the incorporation of international business entities and investment services we are able to introduce you national and international banks and facilitate your account opening as well as other banking needs.