How to register a company in Cyprus in 2026

Corporate tax has risen to 15%, but Cyprus still does not tax dividends paid to foreign owners. We cover what registration costs, how to open a company remotely, why the bank account is the hardest part and what an owner from Russia needs to know.

In detail

Since 1 January 2026 a Cyprus company has paid 15% corporate tax instead of the former 12.5%. Yet the island still does not tax dividends received by an owner without a Cypriot domicile or gains on the sale of shares, and government fees for registering a company come to about $205. What costs money in Cyprus is not registration but everything after it: a bank account, the mandatory audit and running the company from the island.

Cyprus is chosen by entrepreneurs who need an EU company with English-based law, predictable courts and a network of double tax treaties. For Russian citizens the island has one more advantage: a large Russian-speaking community in Limassol, where you can hire staff, rent an office and live yourself. Below is what changed in 2026, how much registration costs, how each step works and where people most often go wrong.

A Cyprus company in 2026: the key figures

Rates, the 60-day rule for personal residence and reliefs for new residents are covered in detail on the page taxes in Cyprus.

Who a Cyprus company suits and who it does not

It suits those who do business with the EU and want a company inside the union with 15% corporate tax: consulting, software development, trading, shipping, investment management. It suits holding companies that own stakes in other companies and receive dividends from them. And it suits those ready to move to the island themselves or to hire a director and staff there.

It does not suit those looking for a zero-tax company with no reporting: Cyprus requires an audit, the tax department checks where decisions are made, and the bank checks where the money comes from. Nor does it suit businesses tied entirely to Russia: an account for such a company is very hard to open, and without a double tax treaty the tax advantages for an owner who is a Russian tax resident almost disappear.

The choice is best started with two questions: where the owner will live and where the clients will be. A Cyprus company works best when the owner or their director is genuinely on the island.

What you can set up in Cyprus

Almost all foreign entrepreneurs register a private company limited by shares. It is the equivalent of a limited liability company: owners are liable for the company's debts only up to their contributions, the law sets no minimum share capital, and there can be one to fifty shareholders.

Such a company must have a director, a secretary and a registered address in Cyprus. One director is enough, but then the secretary must be another person or a licensed administrative service provider. A shareholder can be an individual from any country or another company.

A branch of a foreign company is less common: it is not a separate legal entity, and the parent company is liable for its debts. To hold family assets without a company, a Cyprus international trust is used - a different instrument with its own rules.

How much it costs to register a company in Cyprus

Government fees in Cyprus are low, and from 2026 the stamp duty previously paid on incorporation documents has been abolished.

On top of the fees come the costs without which a company cannot operate: a Cypriot lawyer for the registration, a registered address and secretary, owner checks, bookkeeping and the annual audit. These depend on the number of transactions, staff and whether a director in Cyprus is needed, so the total for a particular company is calculated after discussing its purpose. Our calculation is on the page company registration in Cyprus.

How to open a company in Cyprus: step by step

1. Purpose and structure. Before filing, decide why the company is needed, who will be shareholder and director, and where decisions will be made. Tax residence, the bank account and questions from the owner's home tax office all depend on this.

2. Name. The registry checks that the name does not duplicate an existing one and is not misleading. Approval usually comes within a few working days, and the fee is about $15.

3. Owner checks. Under anti-money laundering law, the lawyer and the administrative service provider check every owner and director: passport, proof of address, source of funds and a description of the planned business. Foreign documents are apostilled and translated into English or Greek.

4. Articles and filing. A Cypriot lawyer prepares the articles and the forms on directors, secretary, address and shareholders and files them with the registry. The fee is about $190. Standard registration takes about one to two weeks, express registration is faster for an extra fee of about $115.

5. Beneficial owners register. Right after registration the ultimate owners are entered in a separate register, which is then updated every year and after every change.

6. Taxes. The company registers with the tax department and receives a tax number, and if turnover exceeds €15,600 in 12 months or it buys services from foreign suppliers in the EU, it registers for VAT.

7. Bank account. The longest step: a Cypriot bank checks the owners and the business model again and asks for contracts, a financial plan and documents on the source of funds.

8. Office and management. For the company to be a Cypriot tax resident and obtain a residence certificate, decisions must be made on the island. More on the page a Cyprus company with an office and director.

In total, from the decision to a working company with an account usually takes one to three months: registration itself takes about two weeks, the tax number and the beneficial owners register a few more weeks, and most of the time goes on the bank.

Can you open a company in Cyprus remotely

A company can be registered without travelling to the island. Owners' documents are certified by a notary in their country of residence, apostilled and translated, and the lawyer files the forms under a power of attorney. Owner checks are done from copies and a video call.

The account and management are harder to arrange remotely. Many Cypriot banks want to meet the director in person, and the tax department looks at where decisions are actually made before issuing a residence certificate. A company whose decisions are all signed by an owner in another country risks becoming a tax resident of that country. How to choose a country where a company is easier to run remotely is covered in where to open a company remotely.

Taxes for a Cyprus company and its owner

Corporate tax. From 2026 the rate is 15%. It is paid in instalments: provisional tax by 31 July and by 31 December, with the final settlement on filing. The return with audited accounts is due 15 months after the year end: for 2025, by 31 March 2027.

Dividends. Cyprus does not withhold tax on dividends paid to foreign owners. An owner who has moved to Cyprus but has no Cypriot domicile also pays no tax on dividends for 17 years. For local residents with a Cypriot domicile the rate was cut from 17% to 5% in 2026.

Deemed dividend distribution. Previously the Cypriot tax department treated a company as having paid dividends even if it had not, and taxed local owners. For profits earned from 1 January 2026 this rule has been abolished.

Holding income. Dividends from foreign subsidiaries and gains on the sale of shares are generally exempt from tax in Cyprus. That is why the island is still used for holding companies.

Intellectual property. 80% of the profit from qualifying assets, such as software and patents developed by the company itself, is exempt, giving an effective rate of about 3%.

Director's salary. The first €22,000 of income a year, about $24,800, is tax-free, then the rate rises from 20% to 35%. A specialist who comes to work in Cyprus for the first time with a salary above €55,000 a year, about $62,000, pays tax on only half of their earnings for 17 years.

Example. A company earns a profit of $100,000 in a year. Corporate tax in Cyprus is $15,000, leaving $85,000 for dividends. If the owner lives in Cyprus without a domicile, there is no tax on dividends on the island. If the owner is a Russian tax resident, the Cyprus company withholds nothing, but in Russia dividends are taxed at 13-15%, that is $11,050-12,750, and total taxes come to $26,050-27,750. The exact figure depends on the owner's residence and the company's income mix.

What changed in 2025-2026

• Corporate tax rose from 12.5% to 15% on 1 January 2026.
• Every company registered on the island is treated as a Cypriot tax resident unless a double tax treaty with another country provides otherwise.
• Stamp duty on contracts and incorporation documents has been abolished.
• Tax on dividends for local residents with a domicile was cut from 17% to 5%.
• Deemed dividend distribution was abolished for profits from 2026 onwards.
• The €350 annual levy, about $395, was abolished from 2024, but companies still owe arrears for earlier years.

Reporting: what the company files and when

For a late annual return the registry charges a penalty of up to $60 on the first day and up to $170 in total, plus an extra fee of about $25, and companies that fail to file for years are struck off. More on the page audit and accounts for a Cyprus company.

A bank account for a Cyprus company

Without an account a company can neither pay nor get paid, so the bank is planned together with registration. Cypriot banks check every new company: who the owners are, where the money comes from, who the clients and suppliers are and why the company is in Cyprus. Opening takes from a few weeks to several months.

For companies with owners from Russia the checks are stricter. EU sanctions do not prohibit a Russian citizen from owning a Cyprus company, but banks look harder at links with Russia, and Cypriot accountants, auditors and consultants are prohibited from working for companies established in Russia. Some entrepreneurs open an account with a Cypriot bank and, in parallel, with an EU payment institution so as not to depend on one bank. How to choose a bank is covered on the page business account in Cyprus and in a bank account abroad.

A Cyprus company and an owner from Russia

If the owner remains a Russian tax resident, the Cyprus company is a controlled foreign company for the Russian tax service. An owner with more than 25%, or more than 10% if Russian residents together own more than half, files a notification every year by 30 April, and reports the participation itself within three months of acquiring the stake or registering the company.

Profit of such a company above 10 million roubles a year is taxed in Russia at 13-15% unless the company qualifies for an exemption. Since 2023 Russia has suspended its double tax treaty with Cyprus, so the owner declares Cypriot dividends in Russia without the reduced treaty rates. Details are in the controlled foreign company notification. If the owner opens a personal account abroad, the tax service must be notified of it too: the rules are in notification of a foreign bank account.

If the owner moves to Cyprus, the company can become the basis for working on the island. Owning a company does not in itself give residence, but a foreign interest company that meets the requirements for employing foreigners obtains residence and work permits for its director and staff. The options are on the pages Cyprus residence permit and Cyprus permanent residence by investment.

Risks and pitfalls

• Management outside Cyprus. If decisions are actually made by the owner in another country, that country's tax office may treat the company as its own, and the 15% rate loses its point.
• A director on paper only. A local director who signs documents without engaging in the business does not create management on the island and raises questions from the bank and the tax department.
• No account. The company is registered but has nowhere to receive money: the bank refused because of an incomplete business description or source-of-funds documents.
• A missed audit. Without audited accounts the tax return cannot be filed, and reporting arrears lead to penalties and striking off.
• VAT. A company that buys advertising or software from foreign suppliers may have to register for VAT even with small turnover.
• Deals with Russia. Banks check payments to and from Russian partners separately, and some goods and services fall under EU sanctions bans.
• Obligations in Russia. A missed controlled foreign company or participation notification exposes the owner to penalties even if the company makes no profit.

Cyprus is not the only option. If the company is needed for trade with Asia or for zero tax on small profits, see how to open a company in Dubai and our review where to open a company in 2026. For the island in general, see moving to Cyprus.

Our services in Cyprus

We run the company from choosing the structure to the first filed accounts: registration, a director and secretary if needed, the account, taxes and audit.

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