Cyprus

Europe’s most business-friendly Island

Cyprus is one of Europe’s most strategically positioned and business-friendly jurisdictions , combining low taxation, EU membership, and a high quality of life. With its favourable holding company regime, extensive double tax treaty network, and transparent legal framework, Cyprus remains a leading destination for entrepreneurs, investors, and internationally mobile retirees.

For businesses, Cyprus offers a 12.5% corporate income tax rate, no withholding tax on dividends, and broad exemptions on profits from the sale of shares. For individuals, the jurisdiction provides flexible residency schemes, favourable pension taxation, and a safe Mediterranean lifestyle.

Ideal for:

  • Entrepreneurs seeking to establish tax-efficient EU holding and trading structures within the framework of Cyprus company law, benefitting from the island’s favourable corporate tax regime, Parent-Subsidiary Directive, and extensive Double Taxation Treaty (DTT) network.

  • International professionals requiring lawful residency and remote work solutions, supported by Cyprus’ strategic EU jurisdiction, robust immigration frameworks, and compliance with EU freedom of movement regulations.

  • Pensioners looking for a safe, high-quality lifestyle while benefiting from favourable pension taxation regimes, coordinated through bilateral tax treaties and aligned with international reporting standards (CRS/FATCA).

  • Individuals planning an international exit, requiring seamless continuity of corporate structures, wealth management, and cross-border compliance, ensuring legal certainty and protection of assets under both Cyprus and EU law.

  • Cyprus offers one of the most competitive and transparent tax regimes in the EU. The corporate income tax rate is 12.5%, among the lowest in Europe.

    There is no withholding tax on dividends paid to non-residents and no capital gains tax on the sale of shares (except those relating to immovable property located in Cyprus).

    Cyprus companies may also benefit from the EU Parent-Subsidiary Directive, the EU Interest and Royalties Directive, and an extensive Double Taxation Treaty (DTT) network covering more than 65 countries. The jurisdiction operates under a modern legal system based on English common law principles, making it highly reliable for corporate governance and dispute resolution.

    With our assistance, the incorporation process, statutory filings, and ongoing corporate compliance are handled efficiently, reducing administrative complexity for clients.

  • Yes. Cyprus has developed into a hub for digital entrepreneurs, consultants, and internationally mobile business owners.

    Individuals who meet the Cyprus tax residency rules — including the 60-day tax residency rule (provided they are not tax resident elsewhere, maintain a permanent residence in Cyprus, and carry out business or employment activities in Cyprus) — can establish Cyprus as their primary tax residence.

    This status enables them to manage their global business interests from Cyprus in compliance with domestic and EU regulations.

    Relocating key management and control functions to Cyprus may also strengthen the corporate tax residency status of the entity, ensuring alignment with international substance and transfer pricing requirements.

  • Business owners benefit from:

    • A 12.5% corporate income tax rate on profits

    • Exemption from tax on dividends and interest for up to 17 years for qualifying non-domiciled residents

    • No capital gains tax on the disposal of securities (shares, bonds, debentures), regardless of whether they are held directly or indirectly

    • Access to the EU Parent-Subsidiary Directive and Double Taxation Treaties, reducing withholding taxes on inbound and outbound dividends, interest, and royalties

    • Foreign pension income taxed at a flat rate of 5% (above €3,420 annually) — a regime particularly favourable for retiring business owners

    • Additional incentives such as intellectual property (IP) tax regimes, notional interest deduction (NID) for equity financing, and favourable treatment of re-domiciliation of foreign companies into Cyprus

  • Cyprus consistently ranks among the safest countries in the EU, with comparatively low crime rates and a strong sense of community, making it an attractive relocation destination for families.

  • Cyprus hosts a wide range of accredited English-speaking international schools offering British, American, and International Baccalaureate (IB) curricula.

    Enrollment procedures are regulated, and we provide advisory support to ensure compliance with admission requirements.

  • Cyprus operates a dual healthcare system comprising both public and private providers. Residents may register with the General Healthcare System (GHS / Gesy), while private healthcare options remain widely accessible.

    We provide guidance on the legal requirements for registration and coordination of private medical insurance coverage.

  • We act as your legal and administrative advisors throughout the relocation process.

    Our services include immigration and residency applications, as well as introductions to licensed real estate partners for property acquisition or rental, always ensuring compliance with local regulations.

  • Cyprus combines favourable pension tax treatment, EU residency benefits, and a Mediterranean lifestyle.

    With its mild climate, low crime rate, and well-developed healthcare system, Cyprus has become one of Europe’s leading retirement destinations for internationally mobile individuals.

  • Foreign private and occupational pensions may be taxed at a flat rate of 5% on amounts exceeding €3,420 per year, offering significant tax efficiency. Alternatively, retirees may elect to be taxed under the progressive income tax system, depending on which is more beneficial.

    We provide advisory on pension structuring, double taxation treaties (DTTs), and compliance with international reporting standards (CRS/FATCA)

  • Emidala assists retirees in securing the most appropriate residency status based on their circumstances.

    Options include:

    1. Permanent Residency Permits for long-term settlement

    2. Yellow Slip registration for EU nationals

    3. Temporary Residence Permits for non-EU nationals

    1. Residency by Investment (fast-track programs) for those wishing to combine relocation with property or capital investment

  • We provide legal and administrative advisory services for retirees relocating to Cyprus. Our support includes immigration and residency applications, pension and tax planning, and introductions to licensed real estate and insurance partners.

    We also provide ongoing compliance support to ensure you remain aligned with local and international legal requirements.

Want to know more?

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