GoEU holding location
English-influenced company law, EU IBAN, established holding structures.
Company formation
Company Formation in Cyprus
Cyprus is an EU location with English-influenced company law. With the 2026 tax reform (in force since 1 January 2026), corporate tax rose from 12.5 % to 15 %; several rules were modernised at the same time. Economic substance is required for tax recognition (ATAD-3). Legal status: 2026, without guarantee.
15 % corporate taxNon-dom: 0 % SDC on dividendsLTD without minimum capital
Key figures
Cyprus at a glance
15 %
Corporate tax (since 1 Jan 2026)
0 %
SDC on dividends (non-dom, 17 years)
1–2 weeks
Registration time
18.858
New companies 2025 (+26.5 %)
Advantages
What speaks for Cyprus
Non-dom status
0 % SDC on dividends and interest for 17 years; only 2.65 % GeSY (capped).
Modernised tax rules
2026 reform: loss carry-forward 7 years, 20 % R&D super-deduction, stamp duty abolished.
Tax comparison
Example: €100,000 profit
| Germany | Cyprus | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 15 % (since 2026) |
| Tax on €100,000 profit | ~€30,000 | €15,000 |
| Dividends to shareholders | 25 % withholding tax (+ surcharge) | 0 % SDC with non-dom status |
Real substance on the ground is required for tax recognition (office, management, activity — ATAD-3).
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Shareholders | Typical use |
|---|---|---|---|
| Private LTD | none prescribed | 1–50 | Standard, holding, trading, IP |
| Public LTD (PLC) | approx. €25,629 | ≥ 7 | Listed/capital-market oriented |
| VCIC | fund-dependent (CySEC licence) | — | Investment funds |
| Partnerships (GP/LP/LLP) | none | ≥ 1–2 | Cooperations, investment |
| Branch / Trust (CIT) | — | — | Market entry / asset structuring |
Mandatory: registered office and company secretary in Cyprus; annual audit by licensed auditors; UBO registration.
Process
How incorporation works
Structure & substance planning
Define the target structure and substance needs.
Name reservation + documents
Reserve the company name, prepare documents.
Registration + company secretary
Registrar of Companies; appoint the secretary.
Bank account + tax/VAT registration
Open an EU IBAN, register for tax.
Office / build substance
Real business premises and activity on the ground.
Secure non-dom / tax residency
Apply for residency and non-dom status.
Registration takes about 1–2 weeks.
Costs
Costs (indicative)
Registration, secretary and registered office, annual audit; office (substance) ~€200–600/month depending on location (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Corporate tax | 15 % (since 1 Jan 2026; previously 12.5 %) |
| SDC dividends (non-dom) | 0 % (17 years) |
| SDC dividends (domiciled residents) | 5 % (previously 17 %) |
| GeSY (health contribution) | 2.65 % (capped) |
| Loss carry-forward | 7 years (previously 5) |
| R&D super-deduction | 20 % (2025–2030) |
2026 reform: deemed dividend distribution (DDD) abolished for profits from 2026; stamp duty abolished.
Residence
Residence & tax residency
Tax residency via the 183-day or the 60-day rule; non-dom status for persons not domiciled in Cyprus (0 % SDC on dividends/interest). For those leaving Germany: exit taxation and extended limited tax liability (AStG) plus real substance need to be considered.
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Corporate tax in Cyprus from 2026?
Show answer
15 %.
Non-dom SDC on dividends?
Show answer
0 % (17 years).
New loss carry-forward?
Show answer
7 years.
Location in numbers
Cyprus in numbers
| Metric | Value |
|---|---|
| New companies 2025 | 18,858 (+26.5 % vs. 2024) |
| Corporate tax | 15 % (from 2026) |
| Non-dom advantage | 0 % SDC on dividends, 17 years |
Latest developments
Latest developments (as of July 2026)
- Tax reform in force since 1 Jan 2026: corporate tax 15 %, DDD abolished, loss carry-forward 7 years, 20 % R&D super-deduction (2025–2030), stamp duty abolished, SDC for domiciled residents cut from 17 % to 5 %.
- Formation boom 2025: +26.5 %.
- ATAD-3 substance requirements for tax recognition.
FAQ
Frequently asked questions about Cyprus
How high is the corporate tax?
15 % since 2026 (previously 12.5 %).
What does non-dom status offer?
0 % SDC on dividends/interest for 17 years, only 2.65 % GeSY.
Do I need substance?
Yes – office, management and activity on the ground (ATAD-3).
Is an audit mandatory?
Yes, annually by licensed auditors.
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Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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