Cyprus

The Cyprus Advantage

Cyprus is a member state of the European Union located in the Eastern Mediterranean at the crossroads of Europe, Asia, and Africa. This strategic position, combined with its EU membership and favorable tax system, makes Cyprus an ideal jurisdiction for international business operations, holding structures, and as a gateway for investments into the EU, Eastern Europe, and the Middle East.

Companies incorporated in Cyprus benefit from one of the lowest corporate tax rates in the European Union at 12.5%. The country has an extensive network of over 60 double tax treaties, an attractive IP box regime offering an effective tax rate of 2.5% on qualifying IP income, and no withholding taxes on dividends, interest, and royalties paid to non-residents. These advantages, along with full EU compliance, make Cyprus a premier tax-efficient jurisdiction.

Key Benefits

• EU Membership: Full access to European single market and compliance with EU directives
• Competitive Taxation: Low 12.5% corporate tax rate with significant exemptions
• Extensive Treaty Network: Over 60 double tax treaties reducing or eliminating withholding taxes
• Strategic Location: Ideal gateway between Europe, Asia, and Africa
• Legal Certainty: Legal system based on English common law with EU harmonization

Company Types Available

Regulatory Framework

Cyprus maintains a robust regulatory framework that balances business-friendly policies with effective oversight and EU compliance. The Department of Registrar of Companies and Official Receiver (DRCOR) oversees company registration and corporate compliance, while the Cyprus Securities and Exchange Commission (CySEC) regulates the investment services market and collective investment funds.

As an EU member state, Cyprus has fully implemented all relevant EU directives, including those on anti-money laundering (AML), exchange of information, and tax transparency. The country has also implemented the Common Reporting Standard (CRS) and FATCA, and actively participates in the OECD's Base Erosion and Profit Shifting (BEPS) initiatives. This ensures that Cyprus maintains its reputation as a fully compliant EU jurisdiction while preserving its competitive advantages.