Why to set up a company in Cyprus and how much does it cost?
If you are exploring this page, chances are you are an innovator, a growing business owner, or a company executive looking to expand and explore new avenues of development.
Cyprus is emerging as a location of choice for international ventures, promoting a favorable business climate with attractive tax incentives and simplified company formation processes. This island is strategically located at the crossroads of Europe, Asia and Africa. It is recognized for its economic strength, competitive corporate tax rates within the European Union and it’s role as an essential connector of markets worldwide.
At NOMAD TAX we are dedicated to the creation and management of companies in Cyprus, providing you with detailed knowledge for the registration of your business, maximizing the tax benefits and strategic opportunities available in Cyprus. Whether your interest lies in taking advantage of its advantageous tax system, its key geographic position or direct access to important markets, we are committed to accompanying you every step of the way.
Key features of Cyprus: Interesting Facts
Cyprus is an island located in the eastern Mediterranean Sea, south of Turkey and west of Syria and Lebanon.
Cyprus proclaimed its independence from the United Kingdom on August 16, 1960.
The country is distinguished by its rich geographic diversity, which includes extensive coastlines, idyllic beaches, rugged mountains, and fertile valleys. This geographic variety provides a wide range of outdoor activities, from hiking in its mountains to exploring its famous sandy beaches.
In terms of surface area, Cyprus has an area of approximately 9,251 km², which makes it comparable in size to countries such as Jamaica or Lebanon.
The population of the island is about 1,207,000 inhabitants. The literacy rate is exceptionally high, exceeding 99%. Approximately one-third of the population resides in Nicosia, the capital, while coastal cities such as Limassol and Larnaca also have significant population densities, attracting large numbers of tourists throughout the year.
Cyprus has one of the lowest tax rates in Europe
Did you know that Cyprus has a tax system that is like a magnet for companies?
The corporate tax rate is super attractive, only 12.5%.
In addition, it has double taxation agreements with many countries and offers tax exemptions for investments and dividends. This means that companies can save a lot in taxes and have more resources to grow and expand.
Another great advantage of Cyprus is that it offers a stable political and economic environment.
This provides a sense of security and confidence to investors and entrepreneurs. You don’t have to worry about sudden changes in the rules of the game here.
In Cyprus stability is the norm allowing you to focus on growing your business without worry.
Do you know the benefits of Non-Dom status in Cyprus?
60-day rule in Cyprus
Did you know that one of the most popular ways to obtain tax residency in Cyprus is through non-dom status?
Non-dom tax residents in Cyprus need to stay only 60 days in the country to be taxed there.
This is a refreshing change from the 183 days required in many other places to be considered a tax resident.
17-year warranty
In Cyprus you have a certainty that you will be able to enjoy the coveted non-dom status for a period of 17 years.
We cannot overlook the fact that Cyprus has been part of the European Union since 2004. This privileged status gives companies that choose to establish themselves in this beautiful country access to an extraordinary market of more than 500 million people.
Cyprus’ membership in the EU not only guarantees the free movement of goods, services, people and capital but also places Cypriot companies in a strategic position to operate within a stable and predictable legal and economic framework.
Other Tax Benefits Cyprus Can Offer You
Taxation of Dividends In Cyprus
In Cyprus you will not pay taxes on your dividends.
As mentioned above, you will only pay a modest 2.65% in case you are a tax resident of Cyprus and this is to contribute to the national healthcare system.
Taxation of Interest in Cyprus
In Cyprus people are generous. Whether you want to make a gift or inherited something from your close relative, you can do so you will have full exemption from interest income tax with your income, whether from foreign or local sources.
Gift taxes in Cyprus
In Cyprus, donations are an act of generosity that is tax-free. Whether you choose to donate to local charities or personal causes, you can do so without worrying about taxes.
In addition Cyprus has no capital gains tax
Unlike many other countries that tax gains generated from the sale of shares and other securities, in Cyprus these gains are tax-free.
Imagine this: your investment income may be taxable (although this depends on how you hold your investments and how long you have lived in Cyprus), but any profit you make from your original investment is completely tax-free.
And here comes even better news: this also applies to shares in companies. So, if you plan to sell your business before retiring in Cyprus, you may want to wait until you are officially tax resident here.
This tax advantage gives you the opportunity to maximize your profits and ensure that your investment grows without taxes getting in the way. It’s a great way to plan for your financial future in a favorable tax environment.
Prices to set up a company in Cyprus
COMPANY IN CYPRUS
ideal for creating your offshore structure-
Company
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Company Name Verification and Approval
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Includes Director(s) Register (1/2)
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Includes shareholder registration (Up to 4)
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Company registration with the Registrar of Cyprus
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Company Certificates
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Tax Identification Code
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VAT number
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Individual
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Non-Dom Application
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Yellow Slip Application
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Individual Tax Number Application
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Benefits of NOMAD TAX
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Personal contact and advice
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Accessible Accounting and Audit Solutions
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Tax Reminders and Significant Dates
COMPANY + NON-DOM
If you want to have your tax residence in Cyprus-
Company
-
Company Name Verification and Approval
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Includes Director(s) Register (1/2)
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Includes shareholder registration (Up to 4)
-
Company registration with the Registrar of Cyprus
-
Company Certificates
-
Tax Identification Code
-
VAT number
-
Individual
-
Non-Dom Application
-
Yellow Slip Application
-
Individual Tax Number Application
-
Benefits of NOMAD TAX
-
Personal contact and advice
-
Accessible Accounting and Audit Solutions
-
Tax Reminders and Significant Dates
Accounting and Auditing for Your Business
We invite you to establish your business in Cyprus with us, as each client will have access to a comprehensive package of tax management and audit services designed to meet a variety of needs. In addition, we provide flexible upgrade options to customize everything to your specific requirements. We focus on keeping recurring costs low and offering outstanding transparency, essential elements to meet our customers’ expectations and our mission objectives.
The prices of this package can be adjusted according to the number of transactions you need.
| Accounting and Auditing in Cyprus | |||
|---|---|---|---|
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Accounting |
900,00 / year |
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Audit |
1.000,00 / year |
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TAX ADMINISTRATION AND PREPARATION |
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|
VIES presentation of EU sales |
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VIES recapitulative statement |
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VAT return |
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Declaration of the defense contribution in the income tax return |
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ANNUAL COMPANY TRANSACTIONS |
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Income up to |
200,000 / year |
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Invoices (Purchases/expenses) |
100 |
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Banking transactions |
200 |
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Bank Accounts |
3 (any Currency) |
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- The above prices are indicative and subject to confirmation for each specific client.
- The price does not include 19% VAT.
Request a Quote
Don’t wait any longer, ask for a quote to come to Cyprus.
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The cost associated with the tax management and audit services package is not included in the company formation fee, although it is an essential part of the overall business formation package.
Upon successful completion of your company’s registration and the initiation of accounting obligations, your assigned Consultant will proceed to activate the tax management package.
The tax management and audit package is valid for a period of one year. For specific details, we invite you to review our rates.
