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Starting Strong — Setting Up a Company in Cyprus the Right Way

  • Alexandrou Corporate
  • 3 days ago
  • 1 min read

Opening a company in Cyprus is straightforward, but to benefit fully from the 12.5% corporate tax rate, certain steps must be followed.


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Key Requirements for Tax Residency:


  • Management & Control in Cyprus:

    • Board meetings held locally.

    • Majority of directors resident in Cyprus.

    • Key decisions taken and documented here.

  • Registered Office – physically located in Cyprus.

  • Accounting Records – maintained within the country.


Ongoing Obligations:


  • Annual Return (HE32) – submitted with audited financial statements.

  • Corporate Tax Return (IR4/TD4) – based on audited accounts.

  • Statutory Records – directors, shareholders, and charges kept for at least 6 years.

  • VAT Registration – required if turnover exceeds €15,600.

  • Levy Removed (2024) – a welcomed cost-saving for companies.


If You Employ Staff:


  • Register as an employer with the Social Insurance Department.

  • Withhold and pay both employee and employer contributions.

  • File monthly returns/payments.


With Alexandrou Corporate Services by your side, you can set up, manage, and grow your Cyprus company with confidence and clarity from day one.

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