CyprusCompany formation, tax and banking
A low-cost EU holding company with 12.5% tax and a non-dom regime that works.
Cyprus does something few EU countries do. It combines a 12.5% company tax rate, no tax on dividends from or gains on selling qualifying shareholdings (the participation exemption), and a personal 'non-dom' status that exempts your dividends and interest from its 17% defence contribution for seventeen years. For founders willing to actually move, that's hard to beat inside the EU.
Its reputation took a hit from the 2013 bank bail-in and the golden passport scandal, and foreign banks still look harder at Cypriot companies. That's manageable with clean paperwork and real activity, but plan for it up front rather than finding out when you try to open an account.
Why people choose Cyprus
- 12.5% company tax, inside the EU
- No tax on dividends from, or gains on, qualifying shareholdings
- No tax kept back on dividends, interest or royalties paid abroad
- Qualifying IP income can come down closer to 2.5% under the IP box
- Move there as a non-dom: dividends and interest exempt from the 17% defence contribution
Where Cyprus fits
- EU holding companies
- IP box structures
- Non-dom relocation
Where Cyprus fits in a structure
Typical role · EU holding company
The Cyprus company usually sits on top, owning the companies that trade, and is managed and controlled from Cyprus. Dividends and gains from qualifying shareholdings come in without tax (the participation exemption), and Cyprus keeps no tax back when it pays dividends on. If you also move to Cyprus, personal 'non-dom' status exempts your dividends and interest from its 17% defence contribution for seventeen years.
What it depends onCyprus expects real presence (a local office, directors who live there, a bank account run from Cyprus), banks check closely where your money came from, and the non-dom benefit only applies if you actually become resident, for example under the 60-day rule.
A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.
Opening a bank account
Bank of Cyprus, Hellenic Bank and Eurobank Cyprus serve businesses, with EU payment firms filling the gap for smaller balances. Expect a detailed check on where your money came from, and a preference for companies with Cypriot directors, a local office and real sales. Shell companies with no activity are turned down as a matter of course.
How tax works here
12.5% company tax, falling to an effective rate closer to 2.5% on qualifying IP income under the IP box (which follows the OECD's 'nexus' rules). No tax is kept back on dividends, interest or royalties paid to people abroad. A deduction for notional interest on new capital brings the effective rate down further. Personal non-dom status exempts dividend and interest income from anywhere in the world from the defence contribution.
Real presence, and who can see the owners
A company is Cypriot tax resident if it's managed and controlled there, and Cyprus now expects real presence: a local office, directors who live there, and a bank account run from Cyprus. The real owners are on a register that authorities can see; since an EU court ruling it isn't open to the public. Directors, officers and shareholders are on the public company register.
When to choose it
Choose Cyprus for an EU holding company where dividends and sale proceeds need to flow out without tax, for an IP company with real development work, or for a founder moving personally who wants to use the 60-day non-dom route.
You get a written comparison, not a sales pitch.
Every Cyprus recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.
Considering Cyprus? Get a written comparison first.
Answer six questions and our team will come back with a shortlist, rough costs and where you could bank.
Questions we hear on every Cyprus intake.
- Can I become Cyprus tax resident in 60 days?
- Yes. The 60-day rule applies if you spend at least 60 days in Cyprus, aren't tax resident anywhere else, don't spend 183 days in any other country, and keep a permanent home in Cyprus plus a business, job or directorship there.
- What does a Cyprus company cost to run each year?
- Budget EUR 3,000–6,000 for the registered office, company secretary, bookkeeping and audit. Every Cyprus company has to file audited accounts, however small it is.
- Is Cyprus blacklisted?
- No. Cyprus is an EU member state and fully inside the international tax-information exchange (CRS), the EU's reporting rules for tax arrangements (DAC6) and the EU tax framework — though some banks do extra checks on Cypriot structures.
What we typically deliver in Cyprus
Corporate Structuring
Groups of companies across several countries: holding companies, companies that own your IP, joint-venture companies, and moving a company to a new country.
MobilityResidency by Investment
Golden visas and residency in 13 countries — Portugal, the UAE, Malta, Greece and more.
BankingInternational Banking
Personal introductions to 25+ private and business banks that are actively taking clients — UK, EU, Gulf, Asia, Caribbean, US.
ComplianceFiduciary & Compliance
Independent directors, anti-money-laundering procedures, proof of real presence, and the day-to-day admin that keeps companies in good standing.
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Every engagement begins with a twenty-minute advisory call. The fee is in writing before any work begins. No hourly billing.