Cyprus Offshore Company

Cyprus Offshore Company Incorporation


Cyprus Offshore Company Formation
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Cyprus Company Formation

Brochure Download: Cyprus Company Formation

Schuss & Co. offers offshore company formation in Cyprus due to its favourable offshore tax regime for international companies. Cyprus is a growing destination for offshore company formation, with tens of thousands of companies being registered in recent years. Offshore companies in Cyprus pay very low income tax and are exempt from capital gains tax.

Read through the jurisdiction overview of Cyprus below for more information on why Cyprus is an ideal location for your offshore company structure. The PDF brochure provides a downloadable introduction to a Cyprus offshore company. If you are unsure about which jurisdiction is best suited to your needs or would like advice on any of our services, please contact us for a confidential discussion with no commitment. 

Geographical Overview

The home of Aphrodite, Goddess of Love, Cyprus is the third biggest island in the Mediterranean occupying around 9,250 sq km. Cyprus has an ideal Mediterranean climate, with more than 300 warm, sunny days a year, and a brief, mild winter with occasional rain.

Cyprus is an independent sovereign republic. The 1960 constitution established a unicameral presidential republic, as well as safeguarding human rights, political pluralism and private property. The country is a member of the UN, the Council of Europe and the Commonwealth since 2004. The official language of Cyprus in the two zones are Greek and Turkish, but most Cypriots speak English, which is used extensively in business and commerce.

The majority of the population is Greek, living in the south of the island. Turkish Cypriots and Turkish immigrants live in the northern part of the island, which has been separated from the south by a UN-supervised buffer zone since 1974. Despite many attempts between the two nations to find a solution to live together in peace, these have yet to yield results.

Economic Overview

Cyprus entered the Eurozone in 2008 and adopted the euro and monetary policy that is dictated by the European Central Bank. Cyprus has fared extremely well in recent years, and was classifed in 2008 as one of the 32 most advanced economies in the world. The economy is dominated by services, with tourism particularly important. The reliance on tourism does make the economy susceptible to external shocks, caused by political instability and Western European economic fortunes.  However, in 2008, the IMF forecasts that Cyprus will be the only developed country to enjoy continued growth through the 2009 global crisis.

The Turkish Cypriot economy has about one-fifth of the population and one-third the per capita GDP of the south.  Here the economy mainly revolves around the agricultural sector and government service.

Taxation Overview

The Cyprus Government worked hard to create a favourable offshore tax regime while at the same time maintaining a normal-looking domestic economy, albeit with rates of taxation that are low by international standards. The success of this programme is attested by the tens of thousands of offshore companies registered in Cyprus since 1975. However, the island’s entry to the EU in 2004 meant a restructuring of the tax regime, which took place on 1st January 2003. Domestic and offshore companies alike now pay 10% tax.

Key Features:

  • Full member of the European Union
  • No withholding of tax on dividends
  • Net profits of international business companies are subject to tax at the rate of 10 per cent only (companies incorporated before 2003 4.25%)
  • Full tax exemption on profits of international business branches if their management and control is outside Cyprus
  • Net profits of international business branches are subject to tax at 10% if their management control is in Cyprus
  • Full estate duty exemption on inheritance of shares in an IBC
  • Full capital gains tax exemption on inheritance of shares in an international business company
  • Foreign employees of international business companies living and working outside Cyprus are exempt from income tax if they are paid through a bank operating in Cyprus
  • No minimal capital requirement
  • No exchange control restrictions

Political and Economic Stability

  • High


  • Based upon the BVI laws – the most flexible model available


  • 10% for IBCs with management control within Cyprus


  • Fast – one working day