Set up a company in Cyprus

If you are an entrepreneur with big ideas, Cyprus is the place for you. The small country offers innovative entrepreneurs a place to start their own business! In addition to the uncomplicated bureaucracy, corporate tax rates are among the lowest in all of Europe. But before you settle there, you should keep in mind that there are some restrictions for EU/EFTA nationals. Make sure your application correspond to the guidelines from the start so you don’t risk rejection.

Citizenships

EU / EFTA / UK

Are you a European Union (EU) or EFTA national, British citizen or holder of a Schengen area passport? Then you don’t need a visa and you can set up a company in Cyprus after just three months. If you want to claim European social benefits, you have to submit a document, also known as the “yellow slip”.

Citizenship of a third country

If you are from a third country, obtaining a Cypriot visa may take some time. Check which countries Cyprus has a visa agreement with. If you go to Cyprus for business reasons, you always need a visa. Multiple entry visas are possible and can even be extended up to five years.

Cyprus is one of the most famous places to start a business. Just note that you will need a visa if you are coming from a third country or going to Cyprus for business reasons.

How to incorporate a company in Cyprus!

Cyprus has positioned itself as an international business hub in recent years. One of his main strategies is to lower taxes. The country’s corporate tax rate of 12.5% ​​is currently lower than other European Union countries. For you, this means more investment opportunities within the national borders. As Cyprus has a double tax treaty with more than 40 countries, this makes it a great place to start your business. If you are not from Cyprus, you still have the opportunity to become a shareholder in companies. You also don’t have to pay any additional taxes on your income from your investment.

In order to incorporate a company in Cyprus, you don’t need to worry about any minimum capital requirements. There are different types of businesses that you could open. For example, a coffee shop, beauty salon, a fruit stand or a small bar on the beach would be an option.

A private limited company

The formation of a company in Cyprus can be done either through a limited company or through public corporations. The most common type of company is the Private Ltd. This type requires only one director with shares for up to 50 people per company. This will put you in control of what’s happening at all times!

International comparison of corporate taxation

How important is the residence of the managing director?

The place of business of a company is important for tax purposes. If there are no Cyprus resident directors, the favorable tax rate of 12.5% ​​cannot be applied. The corporate tax rate is related to the residence of the director! This means that you have to follow the legal regulations of your country of residence. Shareholders who are based in Germany or Austria must ensure that a responsible person runs the day-to-day business in Cyprus.

Live in Cyprus as a partner

Cyprus grants you a tax residence permit with all the associated benefits for a stay of 60 days per year. However, the condition is that you do not have citizenship in any other country. In Cyprus you can take on the role of both a shareholder and a managing director.

Freelancers or micro-enterprises able to work from Cyprus may want to consider relocating there.

Conclusion: The strategy of starting a business in Cyprus!

If you are thinking of incorporating a company in Cyprus, all you need to do is submit a few documents. You can also contact a recognized lawyer to complete the registration process successfully and hassle-free. However, keep in mind that this process will take longer if your nationality is not one of the countries with which Cyprus has a visa agreement. Also consider the residency as the favorable tax rate cannot be applied if the director is not resident in Cyprus.