Private Company Limited by Shares (LTD) in Cyprus
LTD · Formation from $380
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
0.0%
Formation Cost
$380
Annual Fee
$22
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
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
- Tech startups and software companies looking to leverage the 2.5% IP Box regime.
- Holding companies managing EU and non-EU subsidiaries due to the 0% dividend withholding tax.
- High-net-worth individuals (HNWIs) seeking a tax-efficient EU base for personal investments.
- International trading companies requiring a reputable EU jurisdiction with a competitive 15% corporate tax rate.
Who Should Avoid This?
Scenarios where another structure may be better
- Solopreneurs or freelancers with low revenue, due to high annual audit and accounting costs.
- Businesses seeking absolute anonymity, as UBO registration is strictly enforced and shared with authorities.
- Companies that cannot demonstrate local economic substance (e.g., no local office or management).
Advantages
- +Features a highly competitive 15% corporate tax rate, fully aligned with 2026 OECD Pillar Two global minimum tax rules.
- +Offers 0% withholding tax on outbound dividends, interest, and royalties paid to non-residents.
- +The IP Box regime allows an effective tax rate of 2.5% on qualifying intellectual property income.
- +Permits 100% foreign ownership with no local partner requirement.
- +Provides full access to the EU single market and benefits from over 60 double tax treaties.
- +No capital gains tax on the sale of shares or foreign real estate.
Disadvantages
- -Mandatory annual statutory audit (IFRS) is required for all companies, regardless of size or revenue.
- -Requires a local registered office and typically a local company secretary to maintain compliance.
- -Strict Ultimate Beneficial Owner (UBO) reporting requirements with heavy penalties (up to €5,000) for non-compliance.
- -Opening a corporate bank account in Cyprus can be slow (2-6 weeks) and requires extensive KYC documentation.
- -Economic substance requirements are increasingly strict to benefit from tax treaties and avoid foreign tax residency claims.
Formation Steps
Choose and reserve a unique company name with the Registrar of Companies (takes 3-5 working days).
Draft the Memorandum and Articles of Association, which must be prepared and signed by a Cyprus-licensed lawyer.
Submit incorporation documents, including director, secretary, and registered office details, to the Registrar.
Receive the Certificate of Incorporation and official corporate certificates (typically takes 7-10 days).
Register with the Cyprus Tax Department to obtain a Tax Identification Number (TIN).
Register for VAT if your expected turnover exceeds the €15,600 threshold or if providing cross-border B2B services.
Open a corporate bank account and deposit the share capital (no statutory minimum, but €1,000 is standard).
File Ultimate Beneficial Owner (UBO) details with the UBO Register within 90 days of incorporation.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (Registrar of Companies) | One-time | $150 |
| Legal drafting & incorporation service | One-time | $1,200 |
| Registered office & Company Secretary | Annual | $600 |
| Annual Return filing fee | Annual | $50 |
| Accounting & Audit (minimum estimate) | Annual | $2,000 |
| First year total | $4,000 | |
| Annual ongoing | $2,650 | |
Real-World Examples
Typical use cases for this entity type
- Wargaming: The massive video game developer relocated its headquarters to Cyprus to benefit from the IP Box regime and EU market access.
- eToro: The global trading platform uses a Cyprus entity (eToro (Europe) Ltd) to passport its financial services across the European Economic Area.
- Viber: The messaging app company established a significant presence in Cyprus for its favorable corporate tax and tech talent incentives.
Common Mistakes
Pitfalls to avoid during setup and operations
- Failing to establish local economic substance, which can lead to the denial of tax treaty benefits.
- Missing the 90-day deadline to register UBO details, resulting in automatic fines up to €5,000.
- Underestimating the ongoing costs of mandatory annual audits and professional accounting services.
- Using non-resident directors without realizing it may shift the company's tax residency out of Cyprus.
- Delaying the corporate bank account opening process, which can take several weeks due to strict KYC rules.
Other entity types
Other formation options in Cyprus
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
Limited Partnership
- Tax
- 15.0%
- Formation
- $140
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 |
|---|---|---|---|
| 🇨🇾 Private Company Limited by Shares (LTD)(LTD) | 15.0% | $380 | $22 |
FAQ
What is the corporate tax rate in Cyprus?
As of January 1, 2026, the corporate tax rate is 15%, aligned with the OECD Pillar Two global minimum tax framework.
Do I need to visit Cyprus to form a company?
No, the entire incorporation process can be completed remotely through a licensed service provider or lawyer.
Is the €350 annual company levy still applicable?
No, the €350 annual levy was officially abolished in 2024. You only need to pay standard annual return and accounting fees.
Are UBO details publicly accessible?
No. Following a 2022 EU court ruling, public access to the UBO register was suspended. Only competent authorities and obliged entities (like banks) have access.
Do Cyprus companies require an annual audit?
Yes, all Cyprus companies must submit audited financial statements prepared by a locally licensed auditor, regardless of their size.
What is the minimum share capital?
There is no legal minimum share capital, but a standard authorized share capital of €1,000 is typically used during incorporation.
Can a foreigner own 100% of a Cyprus LTD?
Yes, 100% foreign ownership is permitted. Directors can also be non-residents, though local directors are often appointed to establish tax residency in Cyprus.
How does the Cyprus IP Box work?
The IP Box regime exempts 80% of qualifying profits generated from intellectual property (like software or patents), resulting in an effective tax rate of just 2.5%.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
The corporate income tax rate increased from 12.5% to 15% effective January 1, 2026, aligning with the OECD Pillar Two global minimum tax framework. Dividend income and profits from foreign permanent establishments are generally exempt.
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% |
The tax-free threshold was increased to €22,000 in 2026. Cyprus tax residents are taxed on worldwide income, while non-domiciled residents (Non-Dom) enjoy exemptions on dividend and interest income.
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 companies that directly or indirectly own such property.
VAT / GST
19.0%
Registration Threshold: EUR15,600
Non-established businesses providing digital services to Cyprus consumers must register for VAT under the OSS scheme or locally, with no registration threshold.
Withholding Tax
Cyprus generally does not levy withholding tax on outbound dividends, interest, and royalties paid to non-residents. However, defensive measures (up to 17%) apply to payments made to jurisdictions on the EU blacklist or low-tax jurisdictions.
Payroll & Social Security
For 2026, employees contribute 8.8% to Social Insurance and 2.65% to the General Healthcare System (GESY). Employers contribute approximately 15.4% in total across various mandatory funds. The insurable earnings cap for 2026 is €68,904.
Other Taxes
Special Defence Contribution (SDC)
Imposed on dividend and interest income of Cyprus domiciled tax residents. The SDC rate on actual dividends was reduced from 17% to 5% in 2026, and the deemed dividend distribution rule was abolished.
Stamp Duty
Stamp duty was largely abolished as part of the 2026 tax reform, with limited exceptions remaining for specific real estate, banking, and insurance transactions.
Incentives & Support
Cyprus IP Box Regime
An 80% tax exemption on qualifying profits generated from intellectual property assets.
Reduces the effective corporate tax rate on IP income to as low as 2.5%.
Eligibility: Must own qualifying IP (software, patents, utility models) and demonstrate sufficient research and development (nexus approach) in Cyprus.
Notional Interest Deduction (NID)
A tax deduction on new equity injected into a Cyprus company used for business purposes.
Can reduce taxable profit by up to 80%, significantly lowering the effective tax rate.
Eligibility: Available to Cyprus tax resident companies issuing new share capital after January 1, 2015.
Formation Requirements
Minimum Capital
No requirement
There is no statutory minimum share capital, but an authorized capital of €1,000 (approx. $1,100) is standard practice.
Local Director
Not Required
Foreign directors are allowed, but appointing a local resident director is highly recommended to establish management and control for Cyprus tax residency.
Registered Office
Required
Virtual office allowed. $600 - $1,500 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
Required if incorporating remotely so a local licensed lawyer can sign the Memorandum and Articles of Association on your behalf.
Timeline
Standard: 5-10 business days days
Expedited: 1-3 business days days ($110)
Required Documents
- 1Certified copy of passportApostille needed
- 2Proof of residential address (utility bill or bank statement, less than 3 months old)Apostille needed
- 3Bank reference letter
- 4Detailed professional CV of the beneficial owner
- 5Ultimate Beneficial Owner (UBO) declaration form
Compliance & Reporting
Annual Filings
Annual Return (HE32) & Audited Financial Statements
Penalty: €50 flat fee plus €1 per day for the first 6 months, then €2 per day up to a maximum of €500.
Corporate Income Tax Return (TD4)
Penalty: €100 or €200 flat penalty for late submission, plus a 5% penalty on unpaid tax and accrued interest.
Audit Requirement
Required
No minimum threshold; an independent statutory audit is mandatory for all Cyprus companies.
Accounting Standard
IFRS
Tax Return Deadline
March 31 of the second year following the tax year (e.g., 2025 returns are due March 31, 2026).
VAT Filing Frequency
Quarterly
Data Protection
Fully subject to the EU General Data Protection Regulation (GDPR). Companies must appoint a DPO if processing large-scale sensitive data.
Banking & Payments
Bank of Cyprus
The largest traditional bank in Cyprus. Excellent for local operations but requires a physical visit, strong local economic substance, and a lengthy KYC process.
Hellenic Bank
A major traditional bank with strong corporate banking services. Similar to Bank of Cyprus, it demands strict compliance and local presence.
Revolut Business
Remote-friendlyHighly popular EMI for Cyprus companies. Offers fast, fully remote account opening, multi-currency accounts, and seamless cross-border payments.
wamo
Remote-friendlyA digital business account provider tailored for EU companies, particularly popular among Cyprus and Malta entities for its remote onboarding.
Wise Business
Remote-friendlyExcellent for international transfers with low FX fees. Remote account opening is supported for Cyprus entities, though subject to standard UBO checks.
Payment Gateways
Stripe, PayPal, JCC Payment Systems, Checkout.com, Paddle, 2Checkout
Currency
EUR
Multi-Currency: Supported
Account Opening
Opening a traditional corporate bank account in Cyprus is notoriously rigorous and can take 3 to 6 weeks due to strict AML/KYC regulations. Banks typically require proof of local economic substance, such as a physical office and a resident director. For faster, remote-friendly alternatives, many founders opt for EMI fintechs like Revolut Business or wamo.
Practical Information
Timezone
UTC+2 (EET) / UTC+3 (EEST during DST)
Business Language
Greek (Official) and English (Widely used in business and legal documents)
Legal System
Common Law (heavily based on English Common Law, fully aligned with EU directives)
Ease of Doing Business
#54
IP Protection
Robust IP protection framework fully aligned with EU and WIPO standards. Cyprus offers a highly attractive IP Box regime, reducing the effective tax rate on qualifying IP income to 2.5%.
Double Tax Treaties
68 countries
Notable treaties: United Kingdom, United States, United Arab Emirates, India, Singapore, Germany
Visa & Residency Options
Cyprus Startup Visa
Allows talented entrepreneurs from non-EU/EEA countries to establish, operate, and develop a startup with high growth potential in Cyprus. Requires €20,000 capital and a solid business plan.
Foreign Interest Company (FIC) Employment Visa
Enables non-EU nationals to be employed as directors or key personnel in a Cyprus company, provided the company meets foreign ownership criteria and injects an initial share capital of €200,000.
Cyprus Digital Nomad Visa
Allows non-EU nationals to reside in Cyprus while working remotely for employers or clients outside Cyprus. Requires a minimum monthly net income of €3,500.
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Changelog
Data updates and changes on this page
Updated corporate tax rate to 15% (effective Jan 2026) and confirmed the abolition of the €350 annual levy.
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