Moving to Cyprus and Running Your Own Company

Residency, Non-Dom and Filings

Many people come to Cyprus with a company already in mind. They want to live here and run it from here. Three questions come up in the first month. Am I a tax resident? How are my dividends taxed? What does the company still have to file?

When you count as a tax resident

The 60-day rule is the one most newcomers use. You are tax resident in Cyprus if you meet four conditions at once.

You spend 60 days a year in Cyprus. You have a home here. You are a director of your company. You spend no more than 183 days in any other country.

Each condition is a fact you can show. Keep your lease or deed, your flight records and the board minutes that name you as a director. A tax office asks for proof, not for a promise.

The 183-day limit matters for people who split a year between two places. Count the days in each country, not only in Cyprus.

Non-dom status and what it does to dividends

Since 1 January 2026 an owner who is tax resident and domiciled in Cyprus pays 5% Special Defence Contribution (SDC) on dividends from profits earned in 2026 and later. It was 17% before.

A non-dom owner stands outside it. Non-dom status runs for up to 17 years. In that time your dividends and interest carry 0% SDC.

What remains is the health contribution. It is 2.65% and capped at €4,770 a year. The cap means a large dividend does not raise the contribution forever.

Check your own case with a tax adviser, because domicile depends on your history before you came. Our notes are general and not tax advice.

A worked example of the order of events

Say you arrive in March and form a company in April. You are a director from the day the certificate arrives. You rent a flat. You count your days from the day you land.

The 60 days start to build at once, and the home and the directorship are in place. Keep the days in other countries below 183. Write down the dates in a simple sheet. It costs nothing and it saves an argument later.

Which taxes the company pays

The company is a separate taxpayer. It pays 15% corporate tax on its profit from 1 January 2026, up from 12.5%. Tax losses now carry forward for 7 years instead of 5.

Rent and interest earned by the company are taxed once, at the corporate rate. The old SDC on rental income is abolished. So is the deemed dividend distribution, for profits of 2026 onwards.

Stamp duty no longer applies. A contract you sign on or after 1 January 2026 carries €0.

What the company still has to file

Living in Cyprus does not end the company's paperwork. A private company needs one director, one secretary and a registered office in Cyprus. Three forms go to the Registrar at the start: HE1, HE2 and HE3.

The company applies for its tax number within 60 days of incorporation, online through the Tax For All portal.

If you sell to businesses in other EU states, the company needs a VAT number from the first invoice. Sales to consumers there go into one quarterly return once they pass €10,000 a year.

The Registrar keeps a register of beneficial owners. It lists anyone with more than 25% of the company, and banks and authorities can read it.

Where to start if you register from inside Cyprus

You do not need to live in Cyprus to form a company, and owners and directors can be of any nationality. If you are already here, the order is simple. Register the company, get the tax number, then open a bank account, and keep your residency proof from the first day.

The team at Legarithm sets out the steps, the Registrar's fees and the timeline on one page. The Registrar issues the certificate 8 to 12 working days after the documents are complete.

A bank will ask about substance: an office, staff or directors in Cyprus. If you are the director and you live here, you answer that question better than most.