Relocating your business to Cyprus in 2026

You have four main ways to bring a business to Cyprus, and the right one depends on where your company sits today and whether you want to keep it running:

• start a new Cyprus company from scratch;
• open a branch of your existing foreign company;
• redomicile a company from outside the EU, so it continues in Cyprus without closing; or
• run an EU cross-border conversion when your company is registered in another EU member state.

An EU business has one further option, the European company (Societas Europaea), covered below. Some rules change depending on whether you hold EU citizenship or come from a third country.

This guide walks through each route and what it costs, then the steps to move your staff to Cyprus. Our firm handles business relocations to any city in Cyprus, including Limassol, Nicosia, Larnaca, and Paphos.

If you are an entrepreneur weighing a move, see our Cyprus business visa guide for the residence side, and our Cyprus company formation page for the full setup details and cost.

Cyprus in brief

Cyprus is a common destination for business relocation. Its corporate tax rate is 15%, one of the lowest in the EU, and it has signed more than 65 double taxation agreements.

As a member of the European Union, Cyprus follows EU regulatory standards, including rules on human rights and environmental protection.

The European Investment Bank (EIB) Investment Survey 2024, published on 12 February 2025, found that Cypriot businesses are more integrated into global trade than the EU average and that investment in Cyprus sits above pre-COVID levels.

Cost and timeline for relocation

A new Cyprus company is usually ready in 7 to 10 working days once the name is approved and the documents are signed. Our firm handles the full company formation from €1,899, and the official registration fees are set out in the section below.

Moving an existing company takes longer. Redomiciliation from outside the EU and branch registration both depend on certified foreign documents and a certificate of good standing from the country of origin, so they run to several weeks rather than days.

Staff permits sit on their own track. An EU national registers within four months of arriving; a third-country employee is cleared through the Business Facilitation Unit in about a month. The figures in this guide are official government charges. Legal fees for handling the work are quoted separately.

Start your own company in Cyprus

To start a company in Cyprus, register it with the Registrar of Companies.

There are several types of business enterprise. The most common is the private limited liability company. A limited liability company limits what its members can lose if the business fails, which is why most owners choose it.

The law that governs limited liability companies in Cyprus is the Cyprus Companies Law (Cap. 113).

Cyprus company law sets no minimum share capital for a private company. A common nominal figure is €1,000, split into shares of €1 each.

If you are an EU national, see the rules that apply to you below.

If you are a third-country national and your company will have at least €200,000 in share capital, you can use the Business Facilitation Unit (BFU) scheme. If the share capital is lower, the general rules for entry to the Republic apply to you.

Third-country nationals should register a company with the Registrar of Companies and with the Civil Registry and Migration Department register of companies of foreign interests.

Private limited companies registered in Cyprus

The company can have one director, who can be the sole shareholder. So a single person can own and run the company.

Every private limited company must have a company secretary. Where there is only one director, that person cannot act as secretary, so you appoint someone else to the role.

Cyprus's corporate tax rate is 15%, in force from 1 January 2026 and still one of the lowest in the EU. Dividend income a Cyprus company receives is usually exempt under the participation rules.

The fee payable at the Registrar of Companies is €165, plus €100 for the fast track. Source: Company Incorporation Knowledgebase - companies.gov.cy

Cyprus abolished the €350 annual company levy from 2024, so a Cyprus company no longer pays a yearly levy to the Registrar. Further fees may apply when you register the whole document package.

Process (how to register your company)

To register the company with the Cyprus Registrar of Companies, you should do the following:

• Choose a unique trading name, which the Registrar must approve. If your first choice is already taken by another business, put forward at least three names.
• Once the name is approved, draft the Memorandum and Articles of Association (M&A). These must be filed with the Registrar.
• Open a bank account at a Cyprus bank. Deposit the share capital in this account.
• Appoint the directors and secretary.
• Submit all the documentation to the Registrar of Companies. Find the list of documents on the Registrar's website at Applying to incorporate a Company - companies.gov.cy.
• Register the company for tax, VAT, social insurance and pensions. Once this is done, Inland Revenue gives you a unique tax identification number.

The company is issued a business licence, and it can start trading.

The M&A should set out:

• the shareholders;
• the company directors and secretary;
• the share capital and the structure of shares; and
• income tax and financial statements.

The M&A must be notarised. The Registrar of Companies offers guidance on the M&A at companies.gov.cy.

Tax registration

To register your company with the Tax Department, you hand in form T.D. 2001 (application for a tax number) and form T.D. 1101 (application for VAT registration).

VAT registration becomes compulsory once your taxable turnover passes the registration threshold. You can submit the forms by hand at the nearest Tax Department district office.

Tip

A lawyer must sign off on the registration. Appoint a local lawyer to handle your company's formation. Our firm can act for you here.

Setting up a branch of a foreign business in Cyprus

A branch of a foreign company in Cyprus is a permanent establishment of a company not registered in Cyprus. It has the same name as the parent company and offers the same services.

To set up a company branch in Cyprus, the parent company must:

• Apply for approval of the name from the Registrar of Companies.
• Submit to the Registrar an original M&A of the parent company. If the documents are not originally in English, you must translate them.
• Hand in a report about the parent company to the Registrar.
• Provide information about the representative or agent of the parent company in Cyprus. The representative is authorised to act for the company in dealings with third parties.
• Complete and file forms AE 1 to AE 3.

Report from the parent company to the Registrar

Under section 347(1) of the Cyprus Companies Law (Cap. 113), the report that the parent company must submit to the Registrar has to contain several details:

• the name and legal form;
• the address of the parent company and the foreign branch, and the address of the parent company's seat if it differs from the registered office;
• the registration number from the register where the company belongs;
• the issued share capital of the parent company;
• details of any bankruptcy or liquidation of the parent company, where relevant;
• if the parent company is in a non-EU country, the report states the applicable law in that country.

Other details that need to be submitted:

• the names and addresses of the director or directors and the secretary of the parent company;
• the names and addresses of the people authorised to receive documents for the parent company in Cyprus.

Specific rules that apply to the parent company:

• the parent company has the right to buy and own property in the Republic of Cyprus;
• it is treated in law as responsible for the actions of the foreign branch;
• the registration fee for opening a foreign branch in Cyprus is €380; and
• the process runs through the Registrar's e-filing system.

For all the details, see Business Entities, Overseas Company - companies.gov.cy.

Moving your business from the UK to Cyprus

Britain is one of the largest trading partners for Cyprus in goods and services. Many UK founders move to Cyprus for the tax position and the shared legal background.

One practical benefit for a UK business is that Cyprus is a common law country, like the UK.

This means that:

• the legal system follows the same structure and court rules as the UK; and
• Cyprus company law (Cap. 113) is based on the old British Companies Act.

Since Brexit, a UK national counts as a third-country national for Cyprus immigration, so the rules for third-country nationals in the sections above apply to you: register a Cyprus company or a branch, and use the Business Facilitation Unit where your company qualifies.

For the residence and permit side of a UK move, see our guide on moving to Cyprus from the UK after Brexit. You can start the company steps through the Business Facilitation Unit and the government business portal:

• the Cyprus Business Facilitation Unit (BFU): Business Facilitation Unit - gov.cy;
• the government business checklist: Business Checklist - businessincyprus.gov.cy.

How to transfer a business from another EU member state to Cyprus

If you are an EU national and you want to move your business to Cyprus, you can:

• set up a local Cyprus company from scratch (see above);
• open a branch of your existing company (see above);
• set up a European company (Societas Europaea, "SE"); or
• run an EU cross-border conversion, moving your existing company to Cyprus.

Background of the SE

The SE is "a type of public limited liability company that allows you to run your business in different European countries using a single set of rules" (europa.eu). The SE can be set up only within the territory of the European Union (etui.org).

The SE entered into operation throughout Europe on 8 October 2004, after 30 years of discussion among member states.

Two instruments govern the SE: Council Regulation (EC) 2157/2001 on the Statute for a European Company, and Council Directive 2001/86/EC of 8 October 2001 on the involvement of employees.

The SE makes cross-border mergers and re-incorporations easier, letting businesspeople pick the legal system that suits their operations.

How to set up a European company, SE

To set up a European company (SE), you need:

• your registered office and head office (the place where you carry on business) in the same country;
• a "presence" in other EU countries, such as subsidiaries and holdings;
• a minimum subscribed capital of €120,000; and
• a way for your employees to be consulted and informed about company matters, which the EU requires for an SE.

To become SEs, private limited companies form a European holding company or a European subsidiary in another EU member state. A private limited company in France, for example, can form a subsidiary in Cyprus and become an SE.

When the European company is registered, the abbreviation "SE" is added before or after the company name. The Official Journal of the European Union publishes the details of the SE.

The Registrar of Companies has the details at companies.gov.cy.

Benefits of registering an SE include:

• it is a transnational legal form, recognised across every EU member state without re-registration; and
• it has legal personality throughout the EU, so it can trade and hold property anywhere in the Union and does not need a separate branch in each country.

Redomiciliation: moving an existing company to Cyprus

You can move an existing company to Cyprus without closing it and starting again. The company keeps its legal identity and its trading history. Two separate routes exist, and which one you use depends on where the company is registered now.

A company from a country outside the EU uses redomiciliation, or continuation, under Articles 354Α onward of the Companies Law, Cap. 113. A company from another EU member state uses an EU cross-border conversion under Articles 201ΗΑ onward, added to Cap. 113 by Law 26(I)/2024.

Redomiciliation from outside the EU

The company that wants to continue into Cyprus must:

• pass an extraordinary resolution in favour of the move, which usually needs a 75% majority of the members; and
• apply to the Cyprus Registrar of Companies with the required documents.

The documents to file include:

• a copy of the extraordinary resolution;
• a copy of the M&A;
• a certificate of good standing and financial strength, issued by a public authority in the country of origin;
• a report from a director setting out the details of the company; and
• official proof that the company faces no administration or criminal proceedings in the country of origin.

Once the company continues into Cyprus, it is treated as if it had been set up under the Cyprus Companies Law, and it comes under the Cyprus Registrar of Companies like any local company.

EU cross-border conversion

An EU cross-border conversion moves a company registered in one member state so that it becomes a company of another member state, here Cyprus. It is part of the freedom of establishment, one of the founding freedoms of the EU.

The EU Mobility Directive (2019/2121) set a transposition deadline of 31 January 2023. Cyprus put it into national law later, through Law 26(I)/2024, which inserted the cross-border conversion provisions at Articles 201ΗΑ onward of Cap. 113. The rules aim to close gaps and protect the people affected, such as members and creditors.

Ongoing obligations and substance in Cyprus

A relocated company must meet a set of annual obligations, and it needs a physical presence in Cyprus to be treated as a Cyprus tax resident.

The standing obligations are a registered office in Cyprus, proper accounting records, audited financial statements each year, the annual return (form HE32) filed with the Registrar, and registration for tax and VAT.

Substance is the harder test. For the Tax Department and the banks to treat the company as genuinely Cypriot, the management and real decision-making should sit in Cyprus, and in most cases the company needs an office and staff on the ground rather than a nameplate. A company managed and controlled from Cyprus is a Cyprus tax resident and pays the 15% corporate rate on its worldwide profit. Thin substance is what tax authorities abroad challenge, so this is worth getting right from the start.

How to relocate your employees to Cyprus

Different rules apply to EU nationals and to nationals of a third country.

Whatever your business form or country of origin, once you carry on business in the Republic you must register with social insurance and the general health system (GHS).

EU nationals: working and living in Cyprus

EU nationals can live and work in Cyprus without restrictions. Two points still apply.

If they belong to a regulated profession, for example, doctors and lawyers, they contact the relevant Cyprus professional body to obtain a licence or have their existing licence recognised.

An EU national who moves to Cyprus to start work must apply for a registration certificate from the Ministry of the Interior, within four months of entering the Republic.

The application uses form MEU1 and needs a set of documents, including:

• a valid passport or identity card, copy and original;
• proof of accommodation or an address in Cyprus;
• an employment confirmation from the employer; and
• a Cyprus social insurance confirmation.

See the full list in our article on the Cyprus yellow slip.

For the rights of EU workers across the Union, see "Moving & working in Europe" from the European Commission: Moving & working in Europe - europa.eu

Third-country nationals

Cyprus runs a dedicated policy for employing third-country nationals. A foreign company that sets up a genuine office in Cyprus can hire non-EU staff through the Business Facilitation Unit, and the fast-track work permit for companies of foreign interest skips the labour market test.

Employees who have lived and worked legally in Cyprus for the standard qualifying period, broadly seven years, can apply for citizenship by naturalisation.

Staff of foreign interest companies qualify sooner. Since late 2023, they can apply after 5 years of residence with an A2 Greek language certificate, or after 4 years with a B1 certificate, provided they have 12 months of continuous residence before the application and meet the salary condition.

Third-country employees can buy real estate in Cyprus, with permission from the Council of Ministers.