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EU member with 12.5% corporate tax and extensive treaties
Region
WESTERN EUROPE
Corporate Tax
15%
Setup Time
2 weeks
Currency
EUR
Cyprus, an island nation at the crossroads of Europe, Middle East, and Africa, has developed as a significant holding company jurisdiction. EU membership combined with favorable tax rules support company registration for international structuring and business setup.
With a population of 1.2 million, Cyprus offers Mediterranean lifestyle with British colonial heritage. Greek is the primary language in the Republic, with English widely spoken. The climate provides hot summers and mild winters.
Healthcare is good through both public and private systems. Safety is excellent with very low crime rates. The cost of living is moderate, lower than most Western European countries. The divided island situation with Northern Cyprus is a historical consideration.
The international community is substantial, particularly from Russia, UK, and Middle Eastern countries.
Corporate tax rate stands at 12.5%, among the EU's lowest. An extensive double tax treaty network supports international planning. Participation exemptions provide tax-free dividends and capital gains on qualifying shareholdings. IP box regime offers reduced rates on qualifying intellectual property income.
Personal income tax reaches 35% on higher incomes. VAT applies at 19% standard rate. The Euro provides currency stability. Cyprus is fully integrated into EU regulatory frameworks.
Company registration through the Registrar of Companies is efficient. The private limited company (Ltd) is the standard vehicle. Foreign ownership faces no EU restrictions.
Company formation takes approximately 1-2 weeks. Minimum capital is EUR 1,000 for private companies, though not required to be paid in full. At least one director and secretary required. Annual compliance involves audited financial statements.
The Cyprus Securities and Exchange Commission (CySEC) has regulated certain crypto assets as financial instruments. The framework aligns with EU developments, with MiCA implementation upcoming.
Cyprus has attracted crypto and fintech businesses seeking EU-regulated status, with CySEC providing established regulatory oversight for crypto license applications.
The National Betting Authority regulates online gambling, established in 2012. The gambling license framework is more recent than Malta's but functional. Requirements include local presence and substantial compliance obligations.
The market is competitive but offers EU-licensed status for operators.
The 2013 banking crisis created lasting concerns about financial stability, though the sector has recovered. Geographic position brings both opportunity and exposure to regional instability.
Banking access is available but due diligence requirements have increased. Professional services are well-developed for corporate structuring. The holding company regime drives significant activity.
Cyprus suits holding company structures, EU market entry, and businesses leveraging the treaty network for their business setup.
Local: Ltd
Local: PLC
Local: LP
Local: Trust
Local: Branch
| Corporate Tax Rate | 15% |
| Personal Income Tax Rate | 35% |
| VAT / Sales Tax | 19% |
| Capital Gains Tax | 20% |
| Withholding Tax | 0% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | Yes |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | MEDIUM |
| Currency Controls | NONE |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | No |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | EU Travel Rule / FATF compliant under MiCA |
| Business Plan Required | Comprehensive business plan with financial projections, governance structure, compliance measures, marketing strategy required |
| Personnel Required | Minimum 4 directors (2 executive, 2 non-executive), at least 3 Cyprus residents. Executive directors must reside in Cyprus. AML Officer (MLRO) required. |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 4 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | CySEC maintains public register of licensed CASPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Cyprus Securities and Exchange Commission (CySEC) |
| Licensing Fee | $10,000 |
| Licensing Fee Details | €10,000 non-refundable application fee. Annual supervisory fee: fixed component €5,000-€20,000 based on license class + variable component if turnover exceeds €500,000 (capped at €500,000 total) |
| Permitted Business Models | Exchange, Custody, Trading Platform, Advisory, Portfolio Management, Transfer Services |
| Permitted Activities | Crypto-to-fiat exchange, crypto-to-crypto exchange, custody services, trading platform operation, order execution, portfolio management, advisory services, placement of crypto-assets |
| Restricted Activities | Services to EU blacklisted jurisdictions may have restrictions |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |
| Derivatives Allowed | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $500,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A for gambling |
| Business Plan Required | Detailed business plan including financial control, AML procedures, security standards, player protection measures |
| Personnel Required | Directors, UBOs, significant shareholders must pass fit-and-proper checks. Local director required for foreign entities. |
| Insurance Required | No |
| Insurance Details | Bank guarantee of €550,000 required from Cyprus or EU bank, valid 6 months after license receipt |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | NBA maintains public register of Class A and Class B licensees at nba.gov.cy |
| Renewal Period | Annual or Biennial |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | National Betting Authority (NBA) |
| Licensing Fee | $30,000 |
| Licensing Fee Details | Class A or B license: €30,000 (1 year) or €45,000 (2 years). Application fee €2,230. Authorized representative license: €2,000 (1 year) or €3,000 (2 years). |
| Permitted Business Models | B2C sports betting (Class A land-based, Class B online) |
| Permitted Activities | Sports betting (excluding horse racing). Class B allows online betting via .com.cy domain. |
| Restricted Activities | Online casinos, slot machines, lotteries, horse racing, dog racing, poker, Bitcoin gambling are NOT permitted under NBA license. Casino gaming regulated separately by Cyprus Gaming and Casino Supervision Commission. |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $350,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | PSD2/EMD2 compliant, FATF standards |
| Business Plan Required | Three-year business plan with financial forecasts, risk mitigation strategies, target market analysis required |
| Personnel Required | Minimum 2 executive directors (Cyprus residents, four-eyes principle). At least 2-3 non-executive directors recommended. Fit-and-proper requirements for all directors and senior management. |
| Insurance Required | Yes |
| Insurance Details | Professional indemnity insurance or comparable guarantee may be required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | Central Bank of Cyprus maintains register of authorized EMIs and PIs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | No |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Central Bank of Cyprus (CBC) |
| Licensing Fee | $6,000 |
| Licensing Fee Details | EMI/PI application fee: €5,000 + €1,000 per additional PSD2 service (under Directive 473/2020). AISP only: €500. No annual supervisory fees currently, but CBC may impose retrospectively. |
| Permitted Business Models | EMI (Electronic Money Institution), PI (Payment Institution) |
| Permitted Activities | E-money issuance, payment account operations, money remittance, payment execution, direct debits, card payments, fund transfers. PI services 1-5: €125,000 capital; Service 6: €20,000; Service 7: €50,000. EMI: €350,000. |
| Restricted Activities | Banking services require separate credit institution license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | No |