Limited Partnership in Cyprus

Limited Partnership · Formation from $140

Last verified: June 13, 2026

Corporate Tax

15.0%

State Tax

0.0%

Formation Cost

$140

Annual Fee

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy4/10

Remote Setup7/10

Banking7/10

Tax Efficiency8/10

Overall Score6/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

Investors and fund managers setting up Alternative Investment Funds (AIFs).
Joint ventures between a managing partner and passive financial investors.
Professional service firms or family businesses seeking tax transparency.
Entrepreneurs who want to pass business losses directly to their personal tax returns.

Who Should Avoid This?

Scenarios where another structure may be better

Solo founders, as a partnership requires at least two members.
Founders seeking complete limited liability for all owners (a Private Limited Company is better).
Businesses planning to raise venture capital or issue stock options to employees.

Advantages

+Tax transparency: Profits are taxed only at the partner level, avoiding corporate double taxation.
+Limited liability for limited partners: Their financial risk is strictly restricted to their capital contribution.
+No minimum share capital requirement for formation.
+Highly flexible internal management and profit distribution through a custom partnership agreement.
+Ideal structure for Alternative Investment Funds (AIFs) and international joint ventures in Cyprus.
+No statutory requirement for audited financial statements for the partnership itself, unless specific partner income thresholds are met.

Disadvantages

-The general partner bears unlimited personal liability for all debts and obligations of the partnership.
-Limited partners cannot participate in the day-to-day management of the business without risking their limited liability status.
-A Cyprus Limited Partnership is generally not considered a separate legal entity from its partners.
-Requires at least two partners (one general, one limited) to form and maintain.
-Less suitable for raising capital from the general public or venture capital compared to a Private Limited Company (Ltd).

Formation Steps

Choose and reserve a unique partnership name with the Cyprus Department of Registrar of Companies.

Draft the Partnership Agreement detailing profit sharing, capital contributions, and management roles.

Appoint at least one General Partner (unlimited liability) and one Limited Partner (limited liability).

Submit the statutory return (Form Σ2) to the Registrar of Companies within one month of formation.

Pay the required registration and filing fees to the Registrar of Companies.

Obtain the official Certificate of Registration from the Registrar.

Register the partnership and the individual partners with the Cyprus Tax Department to obtain a Tax Identification Number (TIN).

Open a corporate bank account in Cyprus or an EMI, providing the partnership agreement and registration certificates.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
State filing fee (Registrar of Companies)	One-time	$140
Partnership Agreement drafting (Legal fees)	One-time	$800
Registered Office Address	Annual	$300
Tax Registration (TIN)	One-time	$100
Accounting & Tax Filing (Partner level)	Annual	$1,200
First year total		$2,540
Annual ongoing		$1,500

Real-World Examples

Typical use cases for this entity type

A real estate joint venture where a local developer acts as the General Partner and foreign investors act as Limited Partners providing capital.
A Cyprus-based Alternative Investment Fund (AIF) structured as an LP to pool capital from high-net-worth individuals for European tech investments.
A family wealth management structure where the parents act as General Partners controlling the assets, and children are Limited Partners.

Common Mistakes

Pitfalls to avoid during setup and operations

Limited partners getting involved in daily management and accidentally assuming unlimited liability.
Failing to draft a comprehensive partnership agreement, leading to profit-sharing disputes.
Assuming the partnership pays corporate tax, rather than planning for personal income tax liabilities.
Using an individual as the General Partner instead of a Limited Liability Company, exposing personal assets to risk.
Missing the one-month deadline to register the partnership with the Registrar of Companies after formation.

Other entity types

Other formation options in Cyprus

Private Company Limited by Shares (LTD)

Primary

Tax: 15.0%
Formation: $380

Public Company Limited by Shares (PLC)

Tax: 15.0%
Formation: $180

Branch of an Overseas Company

Tax: 15.0%
Formation: $410

General Partnership

Tax: 0.0%
Formation: $130

Sole Proprietorship

Tax: 0.0%
Formation: $100

Company Limited by Guarantee

Tax: 15.0%
Formation: $265

Variable Capital Investment Company (VCIC)

Tax: 15.0%
Formation: $180

Compare with Other Countries

Country / Type	Tax	Formation	Annual
🇨🇾 Limited Partnership(Limited Partnership)	15.0%	$140	$0

🇨🇾 vs 🇺🇸 United States 🇨🇾 vs 🇪🇪 Estonia 🇨🇾 vs 🇬🇧 United Kingdom 🇨🇾 vs 🇮🇪 Ireland All comparisons →

FAQ

Is a Cyprus Limited Partnership a separate legal entity?

Generally, no. It is not a separate legal entity from its partners, though recent laws allow certain investment fund LPs to elect for separate legal personality.

What is the tax rate for a Cyprus Limited Partnership?

The partnership itself is tax-transparent. Profits are taxed at the partner level (progressive rates up to 35% for individuals, or 15% for corporate partners as of 2026).

Do I need to pay the €350 annual company levy?

No, the €350 annual levy was officially abolished by the Cyprus government in 2024 and is no longer applicable in 2026.

Can a limited partner manage the business?

No. If a limited partner takes part in the management of the partnership, they lose their limited liability protection and become liable for all debts.

Is there a minimum capital requirement?

No, there is no statutory minimum share capital required to form a Limited Partnership in Cyprus.

Can foreign nationals be partners?

Yes, both natural persons and corporate entities from any country can be partners in a Cyprus Limited Partnership.

Do Cyprus Limited Partnerships need to file audited accounts?

The partnership itself does not, but individual partners may need to submit audited accounts if their personal taxable income or turnover exceeds certain thresholds (e.g., €120,000 for self-employed individuals in 2026).

How long does it take to register?

Registration typically takes 1 to 2 weeks once all documents and the partnership agreement are submitted to the Registrar.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate

A Cyprus Limited Partnership is generally tax-transparent, meaning profits are taxed at the partner level. However, if a corporate partner is involved, their share of the profits is subject to the standard 15% corporate income tax rate introduced in 2026.

Personal Income Tax (Top rate: 35.0%)

From	To	Rate
$0	$22,000	0.0%
$22,001	$32,000	20.0%
$32,001	$42,000	25.0%
$42,001	$72,000	30.0%
$72,001	No limit	35.0%

Individual partners in a Limited Partnership are taxed on their share of the partnership's income at progressive personal income tax rates, which range from 0% up to 35% for income exceeding €72,000.

Capital Gains Tax

20.0%

Capital gains tax is levied at 20% exclusively on gains from the disposal of immovable property situated in Cyprus, or shares in unlisted companies that own such property.

VAT / GST

19.0%

Registration Threshold: EUR15,600

Non-established businesses providing taxable digital services in Cyprus must register for VAT without any registration threshold.

Withholding Tax

Dividends0.0%

Royalties10.0%

Interest0.0%

Cyprus generally does not levy withholding tax on dividends and interest paid to non-residents. However, defensive measures apply withholding taxes (e.g., 5% on dividends to low-tax jurisdictions and 17% to EU blacklisted jurisdictions) starting in 2026.

Payroll & Social Security

Employer15.4%

Employee11.5%

Employers contribute approximately 15.4% of gross salary (including 8.8% for Social Insurance and 2.9% for the General Healthcare System). Employees contribute 11.45% (8.8% Social Insurance plus 2.65% for healthcare).

Other Taxes

Special Defence Contribution (SDC)

Imposed on dividend, interest, and rental income of Cyprus tax resident and domiciled individuals. The SDC rate on dividends was reduced to 5% in 2026.

Stamp Duty

Cyprus abolished stamp duty entirely as part of the 2026 tax reform, reducing transaction friction for business agreements and property transfers.

Incentives & Support

Non-Domicile (Non-Dom) Tax Regime

Exemption from Special Defence Contribution (SDC) for foreign individuals relocating to Cyprus.

0% tax on dividend and interest income for 17 years.

Eligibility: Foreign nationals who become Cyprus tax residents but are not domiciled in Cyprus.

IP Box Regime

Tax incentive for companies and partnerships generating income from qualifying intellectual property.

80% of qualifying profits are exempt from tax, resulting in an effective tax rate of 2.5% to 3%.

Eligibility: Must own qualifying IP assets (e.g., patents, software) developed locally.

Highly Skilled Expatriate Exemption

Income tax exemption for highly remunerated foreign employees.

50% exemption on personal income tax for up to 17 years.

Eligibility: First employment in Cyprus with a remuneration exceeding €55,000 per annum.

Formation Requirements

Minimum Capital

No requirement

There is no statutory minimum capital requirement to form a Limited Partnership in Cyprus.

Local Director

Not Required

Foreign partners are allowed, but appointing a local General Partner is highly recommended to establish Cyprus tax residency through local management and control.

Registered Office

Required

Virtual office allowed. $300 - $500/year

Notarization Required

Yes

Power of Attorney (Remote)

Required

A notarized and apostilled Power of Attorney is required if a local agent is registering the partnership on your behalf without your physical presence.

Timeline

Standard: 5-10 business days days

Expedited: 2-3 business days days ($120)

Required Documents

1Certified passport copyApostille needed
2Proof of residential address (recent utility bill)Apostille needed
3Partnership Agreement
4Bank reference letter
5Statutory registration form (Form Σ1/LP1)

Compliance & Reporting

Annual Filings

Annual Return (Registrar of Companies)

Penalty: Late filing incurs a flat fee of €50 plus €1 for each day of delay (up to €500).

Annually

Income Tax Return (TD1/TD4)

Penalty: Late submission incurs a €100-€200 penalty plus a 5% surcharge on unpaid tax and accrued interest.

July 31 (Individuals) or March 31 of the 2nd year following tax year (Corporate)

Audit Requirement

Not Required

Not required for the partnership itself unless it is an LLP with share capital, or if individual partners exceed €120,000 in annual turnover.

Accounting Standard

IFRS

Tax Return Deadline

July 31 for individual partners (TD1); March 31 of the second year following the tax year for corporate partners (TD4).

VAT Filing Frequency

Quarterly (if registered)

Data Protection

Must comply with the EU General Data Protection Regulation (GDPR).

Banking & Payments

Bank of Cyprus

The largest traditional bank in Cyprus. Requires strong proof of local economic substance and usually an in-person visit or introduction by a local corporate service provider.

Hellenic Bank

A major local bank offering comprehensive corporate services. Strict AML/KYC compliance means non-resident onboarding can take several weeks to months.

Revolut Business

Remote-friendly

Highly popular EMI for Cyprus companies. Offers fast, fully remote account opening, multi-currency accounts, and physical/virtual corporate cards.

Wise

Remote-friendly

Excellent digital alternative for international transactions, offering local account details in multiple currencies and low FX fees.

Payment Gateways

Stripe, PayPal, JCC Payment Systems, Viva Wallet, 2Checkout, Skrill

Currency

EUR

Multi-Currency: Supported

Account Opening

Opening a traditional corporate bank account in Cyprus as a non-resident has become increasingly difficult due to strict AML/KYC regulations and economic substance requirements. Most local banks require proof of local substance, a clear business rationale, and an in-person visit or introduction by an approved local service provider. Consequently, many non-resident founders opt for digital EMIs like Revolut Business or Wise, which offer faster, remote onboarding.

Practical Information

Timezone

UTC+2 to UTC+3

Business Language

Greek and English

Legal System

Common law

Ease of Doing Business

#54

IP Protection

Cyprus offers robust IP protection aligned with EU directives and international treaties (WIPO, TRIPS). The highly attractive IP Box regime allows an 80% tax exemption on qualifying profits from intellectual property, reducing the effective tax rate to as low as 2.5%.

Double Tax Treaties

67 countries

Notable treaties: United Kingdom, United States, Germany, France, United Arab Emirates, India, China

Visa & Residency Options

Cyprus Startup Visa

Allows non-EU entrepreneurs to reside and work in Cyprus to establish a startup with high growth potential. Requires an innovative business plan, €1M+ capital or pre-revenue status, and is capped at 150 visas until December 2026.

Cyprus Digital Nomad Visa

Permits non-EU remote workers to live in Cyprus for up to one year (renewable for two more) while working for foreign employers or clients. Requires proof of a stable monthly net income of at least €3,500.