Cyprus offers a common-law-influenced incorporation regime under the Companies Law, Cap. 113, administered by the Department of Registrar of Companies and Intellectual Property ("DRCIP"). It is a popular EU holding and fintech base thanks to a competitive tax regime, the IP Box, and generally no withholding tax on outbound dividends, subject to low-tax and non-cooperative jurisdiction rules.
Most founders use the private company limited by shares ("Ltd") under Cap. 113, requiring at least one director, one shareholder, and a company secretary. Alternatives include the public company and a branch of a foreign company.
There is no minimum share capital (commonly €1,000 (≈ $1,160) nominal), and shareholders and directors may be non-resident, though Cyprus tax residency is based on management and control in Cyprus (and, from 2026, on incorporation in Cyprus unless a treaty provides otherwise), so a Cyprus-resident board is common in practice. A registered office in Cyprus is required. Registration runs through the Registrar (name approval then incorporation), usually within five to ten working days, for a registration fee of about €165 (≈ $191) plus a name-approval fee of about €30 (≈ $35).
The Tax Department charges corporate income tax at 15% from 1 January 2026 (raised from 12.5% under Pillar Two), and VAT is 19% once turnover exceeds €15,600 (≈ $18,100). The IP Box gives an 80% deduction (≈ 3% effective on qualifying IP profits, subject to the nexus rules), and there is generally no withholding tax on dividends or interest to non-residents, subject to the statutory rules for low-tax and non-cooperative jurisdictions. Cyprus companies must file audited or, where eligible, reviewed financial statements, and beneficial owners must be recorded in the UBO register at the Registrar.