Move your business to Cyprus

When it comes to relocating your business within the EU, few destinations offer the strategic and financial advantages of Cyprus. Often referred to as Europe’s most business-friendly island, Cyprus combines a competitive corporate tax rate with a stable legal environment, EU membership, and access to a highly skilled, English-speaking service sector.

With just 12.5% corporate tax, 0% dividend tax for non-domiciled residents, and exemptions on capital gains from share transfers, Cyprus is uniquely positioned for business owners looking to simplify their structure, protect profits, and expand internationally. But what does this mean in practical terms for a business owner in Sweden

Meet Johan, a Swedish entrepreneur optimizing for growth and exit

Johan is a 55-year-old founder and majority owner of a consulting firm based in Stockholm. His company earns approximately €1.2 million in annual profit after salaries and operational costs. Johan is considering a relocation to reduce his overall tax burden, prepare for a potential future exit, and enjoy a more flexible lifestyle.

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Cyprus Structure (Non-Dom):

• Corporate tax: 12.5%

• Dividend tax: 0%

• Capital gains on share sales: 0%

• Estimated net income: €1,050,000

  (Calculation: €1,200,000 – 12.5% = €1,050,000. No additional tax.)
  
  

Current Situation (Sweden):

• Corporate tax: 20.6%

• Dividend tax (standard): 30%

• Effective tax on distributed profits: ~44.4%

• Estimated net income after corporate + dividend tax: €666,800

          (Calculation: €1,200,000 – 20.6% corporate tax = €952,800. 
            Then: 30% dividend tax = €286,000. Net: €666,800)

Total Annual Tax Saving: ~€383,000 - That’s a 58% improvement in net income distribution — year after year.

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Why Cyprus Works for Business Owners Like Johan

• Low and predictable tax rates

  (12.5% corporate, 0% dividend for Non-Doms)

• Non-Domiciled recident regime

  For up to 17 years

• EU-compliant legal system

  And SEPA banking

• No withholding tax

  On dividends to non-residents

• No tax on gains from shared sales

  Subjevt to standasrs exemptions

• Substance-friendly jurisdiction

  With access to affordable office and staff infrastructure

How Emidala Supports Business Owners

At Emidala, we help entrepreneurs like Johan relocate their companies — and their lives — with full legal, financial and logistical support. Our Swedish-Cypriot team ensures full compliance and local expertise in both jurisdictions.

Our services include:

• Cross-border company restructuring

• Non-Dom and residency setup

• Accounting, payroll and legal administration

• Physical office & boardroom packages (if required by substance rules)

• Personal relocation support (housing, healthcare, immigration)