Legal framework: governed by Companies Law, Cap.113 and related secondary legislation; company registration and ongoing compliance are handled through the Registrar of Companies.
Currency: EUR, convenient for settlements with EU counterparties and international payment providers.
Tax profile: standard Corporate Income Tax (CIT) of 12.5%, with potential future adjustments as part of the ongoing tax reform discussions.
VAT: mandatory VAT registration applies once annual turnover exceeds €15,600, with separate rules for intra-EU acquisitions and cross-border transactions.
Accounting & reporting: financial statements are prepared in accordance with IFRS and, where required, accompanied by an independent audit report. Certain exemptions may apply for the year of incorporation and, in specific cases, for the following financial year.
Reputation & compliance: Cyprus is not a secrecy jurisdiction. Corporate structures must be fully transparent and acceptable to banks and payment institutions, including clear UBO disclosure, documented sources of funds, contractual substance, and genuine business activity.
Cyprus is particularly suitable for businesses that require EU-compliant company registration, predictable taxation, IFRS reporting, and strong bankability within a transparent legal environment.