In short
The usual structure is a private company limited by shares (Ltd), with no minimum capital, at least one director and a company secretary. Registration costs about €165 and typically takes 1–2 weeks. From 1 January 2026 corporate tax is 15% (was 12.5%), and companies incorporated in Cyprus are tax resident by default. Dividends received and gains on shares are generally exempt, qualifying IP profit is taxed at about 3%, and Cyprus levies no withholding tax on dividends to non-residents. Every company needs an annual audit. The annual €350 levy was abolished from 2024.
Cyprus company: key facts
Last verified 28 September 2026| Minimum capital | None for a private company; €25,629 for a public company# Source: Companies Law Cap. 113 (CyLaw) |
|---|---|
| Directors and secretary | At least 1 director and a company secretary; no residence requirement in law# Source: Companies Law Cap. 113 (CyLaw) |
| Registration fee | about €165 for a private company (standard) estimate# Source: tax.com.cy: register a company in Cyprus 2026 |
| Corporate income tax | 15% from 1 January 2026 (was 12.5%)# Source: PwC Worldwide Tax Summaries: Cyprus corporate income tax |
| Company tax residence | Managed and controlled in Cyprus — and, from 2026, incorporated in Cyprus (unless a treaty says otherwise)# Source: PwC Worldwide Tax Summaries: Cyprus corporate residence |
| IP box | 80% of qualifying IP profit exempt — about 3% effective# Source: KTC: Cyprus IP box regime 2026 |
| Dividends and share gains | Dividends received by companies and gains on shares generally exempt# Source: PwC Worldwide Tax Summaries: Cyprus corporate income determination |
| Withholding tax on dividends | None to non-resident shareholders (except associated companies in EU-blacklisted jurisdictions)# Source: PwC Worldwide Tax Summaries: Cyprus withholding taxes |
| VAT | 19% standard; 9%, 5% and 3% reduced; registration above €15,600 turnover# Source: Cyprus Tax Life: Cyprus VAT 2026 |
| Audit | Required for Cyprus companies regardless of size (dormant companies excepted)# Source: Iacovou & Co: statutory audit requirements 2026 |
| Annual company levy | Abolished from 2024; the annual return (HE32) is still due# Source: Harneys: Cyprus abolishes the annual company levy · AMG Mylonas: annual levy abolished as of 2024 |
| Formation cost with a provider | about €1,500–4,500 all-in estimate# Source: Savva: Cyprus company formation cost 2026 |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Cypriot company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register a Cyprus Ltd exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Cyprus | A company does not give you residence. Non-EU founders who want to live in Cyprus need a separate permit. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Tax treaty with Cyprus | Cyprus has about 65–70 tax treaties, including with the US, Canada and the UK. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Cyprus Company Formation in Numbers
Why Cyprus
Why Americans Register Companies in Cyprus
Cyprus has one of the EU's most-used international company systems. The corporate tax rate rose from 12.5% to 15% on 1 January 2026, but the framework still includes a dividend exemption for companies, exemption of gains on shares, an IP box with an effective rate of about 3% and no withholding tax on dividends paid to non-residents (apart from payments to associated companies in EU-blacklisted jurisdictions).
For American founders the legal system is familiar — Cypriot company law is based on English common law, with memorandum and articles, company secretaries and board resolutions. English is the working language of lawyers, accountants and corporate service providers, who are used to international clients.
Business Structures
Which Entity Type Is Right for You?
For most foreign founders the private company limited by shares is the clear choice.
Private Limited Company
Ltd — limited by shares
The standard choice for foreign entrepreneurs, holding companies and international businesses. Shareholders' liability is limited to any amount unpaid on their shares. No minimum capital; at least one director and a company secretary (a sole director cannot also be the secretary).
- Min. capital
- None
- Directors
- 1 or more (no residence rule in law)
- Secretary
- Required
Public Limited Company
PLC
For businesses seeking public investors or a listing on the Cyprus Stock Exchange. Requires minimum capital and at least two directors, plus stricter disclosure.
- Min. capital
- €25,629
- Directors
- At least 2
Sole Trader
Self-employed
For individuals trading in their own name, registered with the Tax Department and Social Insurance. Unlimited personal liability — and a non-EU national needs a residence permit that allows the activity.
- Min. capital
- None
- Liability
- Unlimited
General / Limited Partnership
General or limited partnership
Two or more partners; general partners are personally liable. Mainly used for professional firms and fund structures.
- Min. capital
- None
- Liability
- Unlimited for general partners
Tax Environment
Cyprus's Corporate Tax Framework (2026)
The 2026 tax reform raised corporate tax to 15%, moved company interest income into normal corporate tax, abolished the deemed dividend distribution for profits from 2026 and added an incorporation test for tax residence. Company tax residence now applies if the company is managed and controlled in Cyprus or incorporated there (unless a tax treaty says otherwise). A majority of Cyprus-resident directors is not a legal requirement, but real management in Cyprus remains important for treaty access and substance.
Cyprus levies no withholding tax on dividends paid to non-resident shareholders, except to associated companies in EU-blacklisted jurisdictions. It has about 65–70 double tax treaties. The US–Cyprus treaty has been in force since 1986 and caps dividend withholding at 5% or 15% — though Cyprus does not charge any domestically.
US citizens and Green Card holders are taxed on worldwide income. Owning a Cyprus company usually means Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI has been renamed net CFC tested income (NCTI). Cyprus's 15% rate (and the ~3% IP box) is below the 18.9% high-tax threshold, so undistributed profits can be taxed in the US each year. The treaty's saving clause lets the US tax its citizens as if the treaty did not exist, so relief comes mainly through foreign tax credits. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Cyprus
Registering a private company means approving the name, preparing the memorandum and articles and registering with the Registrar of Companies — usually through a Cypriot lawyer, who files online.
Plan structure, tax residence and substance Decision
Decide who will own and manage the company and how it will be managed from Cyprus. Although incorporation now makes a company Cyprus tax resident, real management and board meetings in Cyprus matter for treaties and substance. Align this with your US tax adviser first.
Approve the company name Name approval
Apply online to the Registrar of Companies to approve the name. It must be unique and not misleading.
Prepare the memorandum and articles Constitution
The memorandum and articles of association set out the company's objects, share capital and internal rules. The incorporation forms also cover the registered office, the directors and secretary, and a declaration of compliance.
Appoint directors and a secretary Governance
A private company needs at least one director and a company secretary; a sole director cannot also be the sole secretary. Written consents are needed from each.
Register with the Registrar of Companies About €165
File the documents with the Registrar, usually online through your lawyer. The standard fee is about €165, and registration typically takes 1–2 weeks; faster service is available for a higher fee.
Register for tax and VAT Tax
Register the company with the Tax Department for a tax identification number. VAT registration is required once turnover exceeds €15,600 in 12 months — earlier if you supply services to EU businesses.
Open a bank account Banking
Cyprus banks apply strict anti-money-laundering checks. Prepare an ownership chart, source of funds, business plan and expected transactions. Some companies also use EU-licensed payment accounts.
Register as an employer (if hiring) If hiring
Register with Social Insurance before your first employee starts. In 2026 employees and employers each pay 8.8% social insurance, plus employer contributions to other funds and GESY (employee 2.65%, employer 2.90%).
Costs & Fees
What Does It Cost to Register a Company in Cyprus?
Formation costs are moderate; the main ongoing costs are the annual audit, accounting and — if you use them — corporate services such as a registered office and local directors.
| Cost item | Notes | Est. amount |
|---|---|---|
| Registrar fee | Standard registration of a private company; expedited service costs more. | about €165 |
| Formation with a provider | Name approval, documents, filing, registered office and first-year services. | about €1,500–4,500 all-in |
| Annual audit and accounts | Every Cyprus company needs audited financial statements. | quote from your auditor |
| Annual company levy | Abolished from 2024. | €0 |
Estimates for 2026 from commercial providers. Source: tax.com.cy: registering a company in 2026 · Savva: formation cost 2026
Ongoing Obligations
Post-Registration Requirements
Cyprus companies have clear ongoing obligations — and one that surprises many founders: every company must be audited.
Annual audit
Unlike most EU countries, Cyprus requires audited financial statements for companies regardless of size (dormant companies excepted). They are filed with the Tax Department and the Registrar.
Annual return
An annual return (form HE32) confirming directors, shareholders and registered office is filed with the Registrar. The former €350 annual levy was abolished from 2024.
Directors and secretary
Keep at least one director and a company secretary at all times, and notify the Registrar of changes.
Beneficial owners
Register ultimate beneficial owners (for example anyone with more than 25%) and record changes within 14 days; confirm the data every year.
Expert Notes
What Americans Should Know Before Registering in Cyprus
Tax residence is simpler since 2026 — substance still matters
Companies incorporated in Cyprus are now tax resident there by default, and there is no legal requirement for Cyprus-resident directors. But to use treaties and defend residence abroad, the company should genuinely be managed from Cyprus — local directors or regular board meetings in Cyprus are common.
Plan for the annual audit
Every Cyprus company needs an audit by a Cyprus-registered auditor. Budget for it from year one.
The US treaty has a saving clause
The US–Cyprus treaty (signed 1984, in force since 1986) helps with withholding rates and foreign tax credits, but its saving clause lets the US tax its citizens anyway. Raise it with your US adviser before incorporating.
Banking takes preparation
Cyprus banks tightened checks after EU enforcement actions in the 2010s. A corporate services firm with bank relationships can reduce friction. Directories like LocalVouch can help you find vetted, English-speaking Cypriot lawyers and accountants.
IP box and dividend exemption need proper structuring
The IP box (about 3% effective at the 15% rate) requires qualifying IP developed under the nexus approach, and the dividend exemption has conditions. Neither is automatic.
Registering a Cyprus company is right for you if…
- You want an EU company with a 15% corporate rate, dividend and share-gain exemptions and an IP box.
- You value an English common law system and experienced professional services.
- You are building a holding, IP or international trading company with real activity in Cyprus.
- You are ready for an annual audit and bank due diligence.
- You have taken US tax advice on NCTI and the treaty's saving clause.
We work with trusted Cyprus corporate lawyers and service firms who specialise in companies for non-EU founders — from structure and substance to banking, VAT, the annual audit and coordination with your US tax adviser.
FAQ
Frequently asked questions
What is the corporate tax rate in Cyprus?
15% from 1 January 2026 (12.5% before), in line with the OECD global minimum tax. Qualifying IP profit is taxed at about 3% under the IP box, and dividends received and gains on shares are generally exempt.
What is the most common company type for foreigners in Cyprus?
The private company limited by shares (Ltd). It has no minimum capital and needs at least one director and a company secretary.
How long does it take to register a company in Cyprus?
Typically 1–2 weeks after name approval with the standard service, and faster with the expedited service. The Registrar fee is about €165.
Do I need to live in Cyprus to register a company?
No. Foreigners can own and direct a Cyprus company, and the law has no director residence requirement. From 2026 a company incorporated in Cyprus is tax resident there by default, but real management in Cyprus still matters for treaties. A company does not give you a residence permit.
When do I need to register for VAT in Cyprus?
When taxable turnover exceeds €15,600 in 12 months (or is expected to in the next 30 days). The standard rate is 19%. Registration may be needed earlier if you supply services to EU businesses.
Is there still an annual company levy in Cyprus?
No — the €350 annual levy was abolished from 2024. The annual return (HE32) and audited accounts are still required.
Cyprus
Everything about moving to Cyprus
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