Cyprus Company Formation & Corporate Structuring

A Premier EU Jurisdiction for International Business and Tax Optimization

Cyprus is a highly respected European jurisdiction offering the benefits of an EU member state combined with one of the most attractive corporate tax regimes in the region. Located at the crossroads of Europe, Asia, and Africa, Cyprus is a strategic hub for international trade, finance, and cross-border structuring.

Its low tax rates, extensive double tax treaty network, and business-friendly legal framework make Cyprus a top destination for holding companies, investment vehicles, intellectual property (IP) structuring, and offshore tax planning — with the added benefit of full EU compliance.

Why Choose Cyprus for International Company Formation?

Cyprus provides a unique mix of European credibility and offshore flexibility, making it ideal for global entrepreneurs, investors, and multinational corporations.

• 12.5% corporate tax rate — one of the lowest in the EU
• Full EU membership with access to the European single market
• Extensive network of 60+ double taxation treaties
• No withholding tax on dividends, interest, or royalties to non-residents
• No tax on profits from the sale of securities
• Favorable IP Box regime with effective 2.5% tax on qualified income

Cyprus companies are often used for international tax planning, IP ownership, group structuring, finance holding, and EU market entry.

Cyprus Private Limited Companies (LTD)

The most common structure in Cyprus is the Private Limited Company (LTD). These companies are flexible, tax-efficient, and recognized throughout the EU and beyond.

Key Features of a Cyprus LTD Company:

• 100% foreign ownership allowed
• One shareholder and one director minimum (can be the same person)
• No minimum capital requirement
• English widely used in legal and corporate documents
• Fast incorporation: 5–7 working days
• Audited financial statements required annually
• Substance requirements may apply (physical presence, local director)

SCGIBC can provide nominee directors, shareholders, local substance, and full back-office support to ensure your Cyprus entity meets both compliance and operational needs.

Holding & IP Structuring in Cyprus

Cyprus is renowned for its holding company regime, offering full participation exemption on:

• Dividend income from foreign subsidiaries
• Capital gains from sale of shares
• No withholding tax on outgoing dividends, royalties, or interest (in most cases)

Its Intellectual Property (IP) Box Regime allows eligible IP assets to benefit from an effective tax rate as low as 2.5%, making Cyprus an ideal jurisdiction for tech firms, R&D-heavy companies, and IP licensing businesses.

Legal System, Substance & Compliance

Cyprus operates under a common law system derived from English law, making it familiar to international professionals and investors. The country also adheres to:

• OECD and EU anti-avoidance measures
• Substance requirements for companies claiming treaty benefits or tax residency
• BEPS compliance, including CFC rules and transfer pricing

With SCG’s support, your Cyprus structure can meet both local and international regulatory standards while remaining efficient and tax-compliant.

Key Benefits of Cyprus as an International Jurisdiction

• Low EU corporate tax rate (12.5%)
• Zero withholding tax on outbound dividends (to most non-EU countries)
• Strategic location and EU market access
• Full treaty access with over 60 countries
• Attractive IP tax regime (effective rate 2.5%)
• Trusted legal and banking infrastructure
• Transparent and business-friendly regulatory environment

Cyprus is a powerful jurisdiction for those seeking to combine tax optimization, international credibility, and EU market access. Whether you need a holding structure, IP vehicle, or fully compliant European entity, Cyprus delivers unmatched value.

Contact SCG today to incorporate your Cyprus company and gain a strategic edge in global tax planning, corporate structuring, and cross-border operations.