Doing business in Cyprus

Cyprus is a unitary presidential republic and a common law jurisdiction, with company law in the Companies Law, Cap. 113. Companies and IP rights are registered with the Department of Registrar of Companies and Intellectual Property, tax is administered by the Tax Department and customs by the Customs and Excise Department. CySEC supervises investment firms and capital markets, the Central Bank of Cyprus supervises banks, and the Commissioner for Personal Data Protection enforces the GDPR. EU law applies in the government-controlled area.

Key facts

Corporate income tax

15% from 1 January 2026 (12.5% to 2025)

VAT

19% standard

Main entity form

Private company limited by shares; no minimum capital

Dividend withholding tax

Generally none to non-residents; exceptions for EU-listed jurisdictions and, from 2026, 5% to related companies in low-tax jurisdictions

Currency and capital flows

Euro; 2013 capital controls lifted in 2015

Data protection

GDPR and Law 125(I)/2018; Commissioner

New York Convention

Party

Minimum wage

EUR 1,088 a month after six months (EUR 979 on hiring) from 1 January 2026

Cyprus is a common law jurisdiction, and companies are governed by the Companies Law, Cap. 113. Most foreign investors use a private company limited by shares, which has no minimum share capital. Companies and overseas companies with a presence in Cyprus register with the Registrar of Companies, which also keeps the register of beneficial owners. EU law is suspended in the northern part of the island, where the government does not exercise effective control.

Key facts

• A private limited company with no minimum capital is the standard vehicle, under the Companies Law, Cap. 113; a public company needs EUR 25,629.

• Register companies and overseas companies with the Registrar of Companies, and report beneficial owners to the register it keeps.

• Confirm that operations, property and counterparties are in the government-controlled area, since EU law and Republic registrations do not apply in practice in the north.

Who handles this in CyprusSetting up and running a companyContracts and commercial law

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Key facts

• The corporate rate is 15% from 1 January 2026, up from 12.5%.

• VAT is charged at 19% standard, with reduced rates of 9%, 5% and 3%.

• Dividends paid abroad are generally free of withholding tax, except to EU-listed non-cooperative jurisdictions and, from 2026, 5% to related companies in low-tax jurisdictions.

• The IP box deducts 80% of qualifying IP profits, scaled to the share of development carried out by the taxpayer itself.

Who handles this in CyprusTax and structuringAccounting and annual filingsAudit

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Key facts

• The minimum wage is EUR 979 a month on hiring and EUR 1,088 after six months, under the decree in force from 1 January 2026.

• Budget for social insurance (8.8% each side in 2026) and GESY contributions on top of salary.

• Unfair dismissal compensation can reach two years' wages, so document grounds and procedure; statutory redundancy pay comes from the Redundancy Fund.

Who handles this in CyprusEmployment, payroll and immigration

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

Investment firms, funds and crypto-asset service providers are supervised by the Cyprus Securities and Exchange Commission, and banks by the Central Bank of Cyprus and the ECB. Non-EU buyers need permission to acquire real estate. Administrative service providers that form and manage companies are regulated.

Key facts

• Investment firms and fund managers need CySEC authorisation.

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• Banks are supervised by the Central Bank or the ECB.

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• Non-EU buyers need permission to acquire real estate.

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• Use authorised administrative service providers for corporate services.

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Who handles this in CyprusLicences, permits and regulators

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Cyprus uses the euro and has no exchange controls; the capital controls imposed in 2013 were lifted in 2015. Banks apply strict know-your-customer checks, particularly for non-resident and holding structures. The financial intelligence unit is MOKAS.

Key facts

• There are no exchange controls since the remaining 2013 restrictions were abolished in April 2015; profits can move in euro subject to tax.

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• Expect enhanced due diligence for non-resident owners and holding structures; real substance helps account opening.

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• Suspicious transactions are reported to MOKAS.

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Who handles this in CyprusBanking and capitalPayments and currencyAnti-bribery, sanctions and compliance

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Cyprus is part of the EU customs union and applies the common external tariff and EU trade agreements. Customs is administered by the Customs and Excise Department. Goods crossing from the north into the government-controlled area are subject to the EU Green Line Regulation.

Key facts

• Importers need an EORI number and pay EU common tariff rates on non-EU goods.

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• Goods from the north can only enter the government-controlled area under Green Line rules.

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• Dual-use exports need licences under the EU regime.

Who handles this in CyprusCustoms, trade and export controls

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Key facts

• GDPR and Law 125(I)/2018 apply, enforced by the Commissioner.

• Non-EEA transfers need an adequacy decision or another GDPR transfer tool, and special category data transfers need prior notice to the Commissioner.

Who handles this in CyprusData protection and cyber

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Trademarks and patents are registered with the Department of Registrar of Companies and Intellectual Property. Cyprus belongs to the Paris Convention, the PCT, the Madrid Protocol and the Berne Convention, and its IP box makes the location of IP development relevant for tax. Copyright arises without registration.

Key facts

• Protect brands nationally, as an EU trademark, or through Madrid.

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• Patents can be obtained through the PCT route as well as nationally.

• Align IP ownership and development with the IP box conditions where relevant.

Who handles this in CyprusTrade marks, patents and brands

Concentrations of major importance must be notified to the Commission for the Protection of Competition. Takeovers of listed companies are governed by Law 41(I)/2009 and supervised by CySEC. The Companies Law includes examinership, a court-supervised rescue procedure introduced in 2015.

Key facts

• Check Cypriot merger thresholds for any deal with Cypriot turnover.

• Takeovers of listed companies are governed by Law 41(I)/2009 and supervised by CySEC.

• Examinership offers a court-supervised rescue alternative to winding up.

Who handles this in CyprusBuying, selling and investingLicences, permits and regulators

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Bribery is a criminal offence, and a 2022 law provides for an independent authority against corruption. The citizenship-by-investment programme was abolished in 2020.

Key facts

• Bribery is criminal, and Law 19(I)/2022 set up an independent authority against corruption.

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• Citizenship by investment is no longer available.

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• Public and private legal entities must run internal whistle-blowing channels under Law 6(I)/2022.

Who handles this in CyprusAnti-bribery, sanctions and compliance

Cyprus is a common law jurisdiction with an adversarial court system. International arbitration is governed by 1987 legislation based on the UNCITRAL Model Law, and Cyprus is a party to the New York Convention. Judgments from other EU states are recognised under Brussels I bis.

Key facts

• Awards are enforceable abroad under the New York Convention, and the international arbitration law follows the Model Law.

• Common law, adversarial procedure makes Cypriot courts familiar to English-law practitioners.

• EU judgments are enforced under Brussels I bis.

Who handles this in CyprusDisputes and arbitrationContracts and commercial law