The Non-Dom regime exempts foreign dividends and capital gains from tax for up to 17 years
Low income tax rates, no wealth tax and no inheritance tax
A Cyprus Ltd with no income from Cyprus and with management located outside the country can achieve an effective corporation tax rate of zero
Foreign tax authorities may still tax profits in the state of residence
If the shareholding exceeds 50 per cent, a tax attribution may apply
EU substance and transparency requirements still apply. Anonymous letterbox companies are not permitted
Cyprus is an established EU jurisdiction for international company formations. Foreign-owned Cyprus Ltd companies with no income from Cypriot sources can, with the right structuring and with management run from abroad, achieve an effective corporation tax rate of zero. There is no withholding tax on dividends paid to shareholders who are not resident in Cyprus. Cyprus also offers full EU recognition, access to the international banking system and more than 60 double taxation treaties.
Incorporation is fast, the legal system is based on common law, and the professional infrastructure is well developed. This makes Cyprus a preferred option for EU-compliant holding structures, IP licensing or international consultancy businesses.
Cyprus combines a low tax burden with full EU compliance and a high level of legal certainty. A Cyprus Limited Company under the Cypriot Companies Law CAP 113 is an internationally recognised structure for holding companies, IP licensing, consultancy and global trade.
The corporation tax rate is 15 per cent. Foreign income is generally tax-free provided there is no Cypriot source of income. Dividends paid to non-resident shareholders are not subject to withholding tax. More than 60 double taxation treaties, together with integration into EU directives, create clear legal frameworks.
Incorporation typically takes around five working days. The legal system is based on English common law. Cyprus meets international standards on transparency, anti-money laundering and economic substance. The banking system provides access to local and European accounts, although clear business models and verifiable documentation are required.
With political stability, experienced service providers and an attractive Non-Dom regime for incoming individuals, Cyprus remains one of the most flexible and reliable EU locations.
Contact us for an individual analysis of your international structure and to check whether Cyprus is the right solution for you.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| Cyprus | 15% |
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from EUR 1,900 |
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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from EUR 1,900 |
| Malta | 5% |
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income – in certain cases even when profits are not distributed.
Depending on your personal circumstances, a suitable holding structure may be required to comply with tax rules and to avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be pleased to review your case and advise you accordingly.
