Setting up a company in Cyprus is a straightforward and cost-effective way to grow your business while enjoying significant advantages. With its low taxes, EU membership, and strong legal framework, Cyprus attracts entrepreneurs and businesses from all over the world. In this article, we’ll explore 10 key Cyprus company benefits that make setting up a company here an excellent choice for entrepreneurs and businesses.
If you’re ready to get started, our Cyprus Company Formation
1. Ease of Setting Up a Company Setting up a company in Cyprus is surprisingly easy. The process is straightforward, and if you’re in a rush, you can purchase a shelf company to get started in just 7-10 days. This flexibility makes it easy for entrepreneurs to hit the ground running.
For more details on the process, read our How to Open a Company in Cyprus: Step-by-Step Guide.
2. English Language While official paperwork is in Greek, almost 90% of people in Cyprus speak English, making it much easier for foreign business owners to navigate day-to-day operations and communicate with local authorities. Russian is another common business language on the island.
3. Tax Benefits Cyprus company benefits include some of the lowest taxes in Europe for both companies and individuals. The corporate tax rate is just 12.5%, and there’s no capital gains tax. For companies who focus on intellectual property, Cyprus offers the extremely favourable IP Box Regime
Learn more about Cyprus’s tax system for companies in our blog post: Cyprus Company Tax Rates for Businesses: A 2025 Overview .
4. No Investment Restrictions on Foreign Investors Foreign investors in Cyprus can own 100% of their companies without restrictions. This is a significant advantage compared to countries that require local partners or impose ownership caps. Even if your business needs a special license, the process is straightforward and may only require some extra time and paperwork to complete.
5. Low Annual Maintenance Fees One of the key benefits of registering a company in Cyprus is its affordability. If you’re a resident and don’t need nominee services, your annual maintenance fees are usually between €400 and €600, excluding accounting costs.
By comparison, another EU member, Germany, has high costs due to its bureaucracy and the additional services required to navigate it. In Dubai, another low tax jurisdiction, annual maintenance fees range from €10,000 to €12,000, excluding accounting. Cyprus offers a significantly more budget-friendly option for business owners.
6. Full EU Member As an EU member state since 2004, Cyprus provides access to the European Single Market. This means seamless trade opportunities and adherence to the high regulatory standards of the EU, giving your business credibility and room to grow across Europe and around the globe.
7. Double Tax Treaties With a network of 65 double taxation treaties, Cyprus helps businesses avoid paying taxes twice on the same income. This is particularly helpful for companies involved in international trade or operating in multiple jurisdictions, making tax planning simpler and more cost-effective.
8. Qualifies You for Non-Dom Status Setting up a company in Cyprus can qualify you for the non-domicile tax residency status, which provides significant tax advantages on dividends, interest, and other income for non-domicile residents. This is an excellent incentive for entrepreneurs and investors looking to relocate to an island that not only offers financial benefits but also enjoys over 300 days of sunshine annually.
For a deeper dive into non-dom benefits, check out our Cyprus Non-Domicile Tax Residency Status: Ultimate Guide .
9. Anonymity and Privacy If privacy is important to you, Cyprus offers options like nominee shareholders and directors. These services provide full legal compliance while keeping your personal information private. This is especially appealing for investors who value discretion.
10. High-Speed Internet Access Cyprus has reliable, high-speed internet across the island, costing as little as €30 per month. This makes it an ideal base for tech startups, digital nomads, and businesses that rely heavily on online operations. The internet speeds in Cyprus often outperform those of larger EU countries, offering excellent connectivity at a fraction of the cost.
Conclusion Cyprus combines low costs, ease of incorporation, and a strong legal framework to offer businesses a fantastic place to set up and grow. Whether you’re a small entrepreneur or a large investor, the benefits of setting up a company here are clear.
Ready to take advantage of the many benefits of setting up a company in Cyprus? Our Cyprus Company Formation
