Building a House in Cyprus
stone church with a red dome in the Troodos mountains of Cyprus

Łukasz:

How to Start a Company in Cyprus - My Experience

🇨🇾 How to set up a Limited company

I’ve owned a Limited company in Cyprus since March 2017. After moving, I calculated that transferring my business activity from Poland would be more beneficial if I set up a company in this form. In Cyprus, a Limited company (LTD) works similarly to a Polish limited liability company, but looks more professional internationally - the LTD abbreviation is the same as in British companies.

💼 What setting up the company looked like

At the beginning, I searched for an accountant online. Most firms offered comprehensive packages with bookkeeping for over 3,000 euros per year, which was too much for me. However, I found a small local office in my area - the owner agreed to handle bookkeeping for 1,300 euros per year and recommended his friend who’s a lawyer.

The lawyer handled preparing all documents and formalities. I paid about 1,200 euros for company registration, and the entire process - from signing documents to company activation - took roughly a month and a half.

🏦 Bank account for the company

Opening a business bank account wasn’t easy. Initially, banks required a large amount of documents and references, so I decided to open an account at the Polish bank ING, which was one of the few that agreed to serve a Cypriot company.

After several years, I also opened an account at the Bank of Cyprus, where I have my personal account too. The branch is near my house - it turned out the employees know my accountant, so most formalities were handled between them, practically without my involvement.

📑 Running the company in practice

I contact my accountant a few times a year. Currently, all payments and documents can be handled online. The most work comes at the beginning of the year when the accountant prepares the annual audit, which then goes to the authorities.

My role mainly consists of:

  • sending invoices
  • paying insurance
  • signing documents and confirming data

💰 Costs of running a Limited company (current as of 2025)

Until the end of 2023, every company registered in Cyprus had to pay an annual fee (Annual Levy) of 350 EUR. From 2024, this fee was completely abolished, and companies that had already paid received a refund.

Currently, my fixed costs of running the company are:

If salary income doesn’t exceed 19,500 EUR per year, no income tax is paid. Profits above this amount can be paid out as dividends, which for non-domiciled residents are completely tax-exempt.

Non-domiciled status applies to people who have not been tax residents of Cyprus for at least 17 of the last 20 years (or meet other conditions in cases of Cypriot origin). Thanks to this, you don’t pay Special Defence Contribution (SDC) or income tax on dividends - the effective dividend tax rate is 0%.

Additionally, the company pays:

  • CIT (Corporate Income Tax) - 12.5% on profits
  • 2.65% GESY on paid dividends

In my case, the total burden (CIT, GESY, contributions, and running costs) amounts to about 17% per year, which is still very favorable compared to most EU countries.

🧭 Is it worth running a company in Cyprus?

From my experience - yes. The system is simple, most things can be handled online, and the authorities are flexible and cooperative. I once had a situation where I was late paying insurance by two weeks - I got only a 2 euro penalty. That was the entire problem.

A Limited company in Cyprus is a good solution for:

  • freelancers and remote workers
  • service companies with international clients
  • Poles living in or planning to move to the island

It’s a form of business that looks professional and is simple to manage.