Why Cyprus
An EU jurisdiction built for international business
Favourable taxation
15% corporate income tax (from 1 January 2026, in line with the EU global minimum tax framework), still competitive within the EU. Notional Interest Deduction on new equity and an IP Box regime offering an effective rate as low as 3% on qualifying IP profits.
Zero tax on dividends (where applicable)
Dividends received by a Cyprus holding company are generally exempt from corporate tax. No withholding tax on dividends paid to non-resident shareholders.
Capital gains exemption
Profits from the disposal of shares and other securities are exempt from tax (except shares in companies holding Cyprus real estate).
Non-Dom regime
Non-domiciled tax residents are exempt from Special Defence Contribution on dividends and interest for 17 years. For Cyprus-domiciled residents, SDC on dividends was reduced to 5% from 2026, and the deemed dividend distribution rules were abolished.
Double tax treaty network
65+ double tax treaties plus the EU Parent-Subsidiary and Interest & Royalties Directives.
EU membership & Eurozone
Full EU member using the euro, with a modern regulatory framework and passporting rights.
English-speaking, common-law based
Laws are based on English common law; English is widely used in business, banking and the courts.
Strategic location
At the crossroads of Europe, Asia, the Middle East and Africa — a few hours' flight from London, Dubai, Tel Aviv and Athens.
Small distances, easy living
Nicosia, Limassol, Larnaca and Paphos are within about an hour of each other, with two international airports.
Sunshine & quality of life
Over 320 days of sunshine a year, safe, family friendly, with excellent international schools and healthcare.
Skilled professional workforce
A large pool of qualified accountants, lawyers and finance professionals at competitive cost.
Low-cost set-up
Fast incorporation and reasonable running costs compared with other EU jurisdictions.
Example structures
Illustrative only. Every structure must have genuine commercial substance and is reviewed against your personal and corporate tax position.
1. International holding company
Subsidiaries distribute dividends to the Cyprus holding company, typically free of withholding tax under EU directives or treaties. Dividends are exempt in Cyprus and can be passed on to non-resident shareholders with zero withholding tax. Gains on sale of subsidiaries are also exempt.
2. IP holding structure
A Cyprus company owning qualifying intellectual property (patents, software) earns royalties; 80% of qualifying profit can be exempt, giving an effective rate as low as 3% (based on the 15% corporate tax rate).
3. Trading company with Non-Dom owner
Profits taxed at 15% (from 1 January 2026). Dividends paid to the Non-Dom resident owner are exempt from Special Defence Contribution, making Cyprus attractive for entrepreneurs relocating with their business.
Plan your Cyprus structure with us
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