15% on company profits
The standard corporate income-tax rate has been 15% since 2026. Personal taxation of salaries or dividends is separate.
Official source ↗
Jurisdictions
Cyprus · Ltd
A European company with real local management. Company residence and shareholder residence are planned separately.
Formation & price
Your GCS formation package.
€4,500
One-time package price · incorporation fees included
Business price excluding any applicable VAT.One Ltd with one individual shareholder and standard articles; no nominee director.
Included in the package
- Formation preparation, document review and a dedicated GCS contact.
- Incorporation including government, local formation, translation and certification fees required for the standard case.
- Tax registration and registered office for twelve months; preparation of banking documents. As sole shareholder you act as director and secretary yourself.
- Digital incorporation documents and a schedule of ongoing obligations.
From the second year
€1,800 / year —Basic administration, renewing the included address and local statutory roles, plus routine register filings and related registry fees. Excluding applicable VAT; accounting provides any required financial information.
Also available
Cyprus · LP with a Ltd as general partner
€4,990 excluding VAT, one-time for the first year; follow-up costs on request.
A limited partnership with your Cyprus Ltd as general partner, which has unlimited liability; you participate as limited partner. No individual is then exposed to unlimited liability.
All-in package for the first financial year: formation of the Ltd and registration of the LP with the Registrar of Companies, VAT number, bookkeeping and audit, and registered office for twelve months. Costs from the second year depend on bookkeeping volume and are quoted in advance.
The LP is tax-transparent: its profits are attributed to the partners. For residents of Germany, Austria or Switzerland this can mean taxation in the country of residence. We review this before formation. Do not serve customers in Cyprus with this structure, or local taxation may arise.
Budgeted separately
Share capital, taxes on your activity, bookkeeping, financial statements, tax returns and audits are outside the formation package. Physical offices, operational substance, nominee directors, special licences and additional entities are quoted separately. Bank-application support does not guarantee acceptance.
The fixed price applies to the standard case described above. Variations and additional services are specified in a written quote before engagement.
Enquire about the Cyprus packageTax & company structures
Potential advantages for your business.
IP box
80% of qualifying IP profits may be excluded under the nexus approach. At a 15% rate this mathematically gives 3% on those qualifying profits, not on all revenue.
Official source ↗Company form and special regime
An LP is a separate alternative: at least one general partner has unlimited liability, while a limited partner contributes a specified amount. Liability and tax allocation require separate analysis. We also offer the LP, with your Ltd as general partner.
Official source ↗As of September 2026. Benefits depend on activity, actual management, residence and personal circumstances. Company taxation is not the shareholder’s total tax burden.
At a glance
What this company can offer.
- An incorporated company within the EU
- Euro-denominated business and accounting
- Company setup can be coordinated with relocation
15%
Standard corporate income tax
Applies to taxable company profits from 1 January 2026; not the shareholder’s overall tax rate.Provide for local management, accounts and annual filings. Personal non-dom status is assessed separately from the company.
Where it fits
The location must fit the plan.
For businesses with a credible Cyprus connection, international holdings and qualifying intellectual property activities.
Scope
From context to execution.
- Review of ownership, activity, residence and countries involved.
- Agreed responsibilities, document checklist and open specialist questions.
- Coordination of company or residence documents, banking preparation and local professionals within the agreed scope.
- Document handover and a schedule of ongoing obligations.
The general corporate income tax rate is 15% from the start of 2026. As of 09/2026.
Securities gains and outbound dividends or interest may benefit from exemptions, subject to property-related exceptions, recipient status and defensive rules.
The IP box can provide an 80% deduction for qualifying profits, subject to nexus and documentation. Notional interest deduction requires a separate equity assessment. As of 09/2026.
The reform also changes losses, stamp duty and residence provisions. Transaction-specific and transitional treatment requires local review.
Requirements & Substance
What needs to be clear first.
Local decision-making must be real. Premises, people, contracts and governance should reflect the activity. Incorporation alone does not resolve dual residence or treaty questions.
Timing
A sequence with clear dependencies.
Document review, specialist clearance, filing and account or status decisions follow separate processes. Once the documentation and scope are clear, we agree a schedule. Authority and bank decisions cannot be guaranteed.
Ongoing Duties & Cost Drivers
The structure must work day to day.
Accounting, financial statements, audit or eligible review procedures, register filings, tax, VAT and payroll drive the ongoing workload.
German connections
From a German perspective.
A headline rate of 15% does not exclude German CFC exposure when reliefs reduce the relevant tax burden. EU economic-activity requirements and the shareholder’s non-dom treatment need separate review. As of 09/2026.
Management & permanent establishment
Actual central management and fixed business facilities can create German tax exposure; a foreign registered address is not sufficient.
Sections 10 / 12 AO ↗Controlled foreign companies
Control, income type and actual taxation matter. The low-tax threshold is below 15% (as of 09/2026); EU/EEA substance rules require evidence.
Sections 7–13 AStG ↗Foreign-interest reporting
Foreign businesses and shareholdings may trigger notification duties. Conditions, thresholds and deadlines need review.
Section 138(2) AO ↗Exit taxation
Departure or restrictions on German taxing rights can trigger taxation of unrealised gains on covered interests, subject to personal conditions.
Section 6 AStG ↗Remaining German interests
German nationals meeting all relevant conditions may face extended limited taxation for up to 10 years after the departure year (as of 09/2026). Preferential taxation alone is insufficient.
Section 2 AStG ↗Tax treaties
Residence, income, entitlement and the current treaty text determine relief. The existence of a treaty is not a blanket exemption.
Treaty status ↗This overview does not replace case-specific review by directly appointed, qualified legal and tax professionals.
Read on
Guides and terms for this country.
Formation21 September 202619 min
Choosing a legal form abroad: LLC, Ltd, OÜ or Sp. z o.o.?
LLC, Ltd, OÜ or Sp. z o.o.: the eight forms GCS incorporates all have limited liability and differ in statutory roles and tax model. The most flexible is the US LLC: online, no presence required, no US income tax without US business activity. A comparison with table, examples and the recommendation of which form suits which way of life.
Read the articleFormation21 September 202617 min
What forming abroad costs: the package, the fees and the items beside it
A formation price is only a number once it is clear what it includes. This article breaks the cost of a company abroad into government fees, statutory roles, bookkeeping and tax, shows the GCS packages for eight countries, describes the process from first conversation to handover and shows why the US LLC offers location-independent entrepreneurs the best balance of cost and flexibility.
Read the articleFormation21 September 202616 min
After incorporation: annual filings, bookkeeping, registers. The compliance calendar of a company abroad
Incorporation starts the calendar. Every jurisdiction requires at least one register filing, bookkeeping and tax returns each year, many even from a dormant company. This article lists the obligations by country with deadlines and government fees, sets out what GCS takes over from year two and recommends confining the calendar to one country: the one you live in.
Read the article
Terms in the glossary
Questions & Answers
Worth knowing.
Does incorporation grant non-dom status?
No. Company and personal tax positions are separate.
Is a registered office enough?
No. Actual management and activity must support the structure.
Does every software company qualify for the IP box?
No. Qualifying IP, development expenditure and nexus require evidence.
Does every company face the same audit?
No. Legal eligibility, size and review provisions need to be assessed.
How are dividends treated in Germany?
Residence, ownership, income classification and the treaty determine the assessment.