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 no withholding tax on outbound dividends.
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 (≈ 2.5% effective on qualifying IP income), and there is no withholding tax on dividends or interest to non-residents. All Cyprus companies must file audited financial statements, and beneficial owners must be recorded in the UBO register at the Registrar.