Company registration in Cyprus

A company registered in Cyprus and managed from its territory (even without a local director) is considered a Cyprus tax resident and is subject to corporate tax on profits earned both in Cyprus and abroad.

Corporate tax is 15%. It is calculated on the company's profits after deducting all expenses. If the company is newly established and has no turnover, there is nothing to pay.

There is also a special corporate tax rate of 0% on dividends (if already taxed in another country), capital gains, and income from the sale of subsidiaries.

VAT in Cyprus is standardly 19%, but reduced rates are available: 9%, 5%, and even 0%. The latter applies to exports, international services, and intra-EU deliveries—convenient for companies with international clients.

A company in Cyprus is required to register for VAT if its total turnover of VAT-taxable goods and services exceeds €15,600 over the past 12 months. Upon registration, the company receives a VAT number. VAT returns are submitted quarterly, no later than 40 days after the end of the quarter.

For sole proprietors, a progressive income tax rate applies: the first €22 000 is completely exempt, then the rate increases to 35% for income above €72 000. However, if you earn income as a company owner and reside in Cyprus as a non-domicile, you are exempt from additional taxes on dividends, interest, and rent. This is one of the most advantageous statuses for foreign entrepreneurs, protecting against double taxation and encouraging them to conduct business from here.

The tax rate under the IP Box regime (for intellectual property) is 3%. If your business involves software development, licensing, or patents, you can legally reduce the effective tax rate to 3%. More about this mode.

Effective January 1, 2026, defensive tax measures were introduced for payments (dividends, interest, licenses) to related companies located in low-tax or blacklisted jurisdictions: for example, the withholding tax (WHT) will be 17%, and interest/royalty expenses may not be deductible.

Tax on income from cryptocurrency - 8%.

Not applicable.

Cyprus actively enters into double taxation agreements to ensure that the same income is taxed twice: in the source country and in the country of residence.

Cyprus has over 65 such agreements, including all key destinations—Ukraine, Poland, the UK, Germany, France, Switzerland, the UAE, the US, Canada, Israel, and almost all EU countries.

For example, if a Cypriot company receives income from a subsidiary or partner in another country that also levies corporate income tax, the countries have a treaty that allows for a tax credit or exemption of part of the income.

This reduces the tax burden and makes Cyprus a convenient jurisdiction for international holdings, IT companies, and startups that work with clients or investors abroad.

The Cyprus system is not an offshore jurisdiction, but a fully transparent European model that complies with EU and OECD requirements. There are no hidden taxes, and reporting is conducted according to international standards. At the same time, the country remains one of the most flexible and business-friendly: bookkeeping is easy, you can work with foreign clients, receive dividends without withholding, and take advantage of a network of double taxation treaties.

Therefore, registering an offshore company in Cyprus has long been less about offshore and more about stability and flexibility.
Cyprus is also not included in the "offshore zones" of the Cabinet of Ministers of Ukraine, so opening a company in Cyprus is prestigious from the perspective of Ukrainian law.

Campio Group lawyers support you at every stage of registering and launching a company in Cyprus:

• We help you choose the optimal company form;
• We check and reserve a unique name;
• We prepare all constituent documents (charter, Memorandum & Articles of Association);
• We advise on the appointment of directors and shareholders;
• We organize a legal address and secretary;
• We submit documents to the registry and obtain a Certificate of Incorporation;
• We assist with obtaining a tax identification number (TIN) and registering for VAT;
• We assist with opening a corporate bank account;
• We appoint a licensed auditor and organize the preparation of annual reports;
• We oversee the timely submission of Annual Returns and audited reports, including "zero" reports.

With Campio Group, the entire process of opening a company in Cyprus becomes simple and transparent—you receive a ready-made company that fully complies with Cypriot law and is ready to operate in the EU market. Therefore, if you are looking to buy a company in Cyprus, Campio Group is ready to provide a complete turnkey service.