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Every year, Cyprus draws in a growing number of expats eager to begin their business journey. From the appealing 12.5% corporate tax rate to the straightforward setup process, Cyprus has established itself as a pro-business haven. Whether you’re from an EU/EFTA country or the United Kingdom, setting up a trust in Cyprus and living in Cyprus offer compelling opportunities to launch and protect your enterprise. More and more professionals are interested in starting a business in Cyprus due to its simplicity and benefits.
As a national of the EU or EFTA countries (Switzerland, Norway, Iceland, Liechtenstein), you can dive right into your business plans in Cyprus. The process is simple:
You can begin establishing your company as soon as you arrive.
After three months of living in Cyprus, you must apply for the Registration Certificate for EU Nationals – commonly referred to as the “yellow slip.” Learn more at the Civil Registry and Migration Department.
This document formalises your residency and aligns with Cyprus’s requirements for long-term business or personal stay. The application process for the yellow slip is straightforward and includes submitting your passport, proof of address, and evidence of sufficient income or employment. It’s essential to start this process promptly to ensure smooth business operations.
Additionally, registering with the local municipality and tax authorities ensures compliance and facilitates setting up utilities and bank accounts. This quick administrative process is often praised by expats for its efficiency compared to other EU countries. This efficiency is one of the many reasons why starting a business in Cyprus is a preferred option among EU nationals.
If you’re from the UK, or from a country outside the EU and EFTA that does not have a visa waiver agreement with Cyprus, don’t worry – you can still set up a business. However, the journey involves a few more steps:
You will need a visa to enter Cyprus. Visit the Cyprus Ministry of Foreign Affairs for up-to-date information.
A multiple-entry visa for business purposes is available, valid for one year and extendable up to five years.
You may also explore the Business Facilitation Unit which helps non-EU nationals and UK citizens invest or establish companies under specific qualifying conditions.
Setting up a trust in Cyprus is also an option for asset protection or business structuring and can support your entry and operations. Trusts can hold business shares, act as beneficiaries for future succession, or serve estate planning purposes, which is especially relevant for non-EU nationals managing global wealth.
Good to know: Investing more than five million euros may qualify you for Cyprus’s exceptional Naturalisation by Investment scheme, potentially leading to citizenship. Although this programme has undergone changes, high-value investors should consult local legal experts to explore eligibility and benefits.
Cyprus has made huge strides as a modern business centre. Since rebounding from the financial crisis, the island has lowered barriers and made it easier for new ventures to thrive. Here’s why living in Cyprus and starting a business in Cyprus makes so much sense:
Low corporate tax rate: 12.5% – among the lowest in the EU.
Double tax treaties: Agreements with over 40 countries eliminate double taxation. See the Ministry of Finance list of treaties.
Inclusive policy: No nationality restrictions on directors or shareholders.
Minimal capital required: You can start with zero minimum capital.
These policies make Cyprus especially appealing for start-ups, remote entrepreneurs, and those interested in setting up a trust in Cyprus alongside a company.
Cyprus also offers a highly educated, English-speaking workforce, competitive office rental prices, and a reliable legal system based on English common law. These factors combine to provide both stability and flexibility to investors and entrepreneurs.
Additionally, the country’s modern infrastructure, including widespread internet coverage, efficient transport, and professional service providers, makes day-to-day operations straightforward and cost-effective. This creates the perfect environment for starting a business in Cyprus with confidence and minimal friction.
The most popular structure is the Private Limited Company (LTD). To establish an LTD:
You need only one director and one shareholder (up to 50 allowed).
Directors can be of any nationality, but local residents help optimise tax benefits.
Setting up a trust in Cyprus to own the company adds an extra layer of asset protection and planning flexibility.
Other options include public limited companies, partnerships, and sole proprietorships, but for most small-to-medium businesses, the LTD offers the best mix of simplicity, protection, and scalability.
You may also choose to register a branch of a foreign company in Cyprus, which can be a strategic way to enter the EU market without fully incorporating a new entity.
To begin, your company name must be approved by the Cyprus Registrar of Companies. You can do this:
In person
By post
Online via the ARIADNI Government Gateway Portal.
Once the name is approved:
Prepare and submit the incorporation documents
Certification must be done by a Cyprus-registered lawyer
Documents are filed via ARIADNI or directly at the Registrar
You’ll receive your company certificate in 7–10 working days. Following incorporation, your business must be registered for tax, VAT (if applicable), and social insurance if hiring employees. Open a corporate bank account and, if desired, register for e-commerce or online trading permits.
Many new business owners also choose to engage local consultants to manage these processes, ensuring no step is missed. Using a service provider experienced in starting a business in Cyprus can save both time and stress.
Trusts in Cyprus are governed by the International Trusts Law, which was updated in recent years to provide one of the most flexible and advantageous trust regimes in Europe.
A trust can be used to:
Own shares in your Cyprus LTD or international holdings
Provide income to family members under set terms
Avoid probate and manage succession
Protect assets from litigation or political instability
To establish a trust:
Appoint at least one Cyprus-resident trustee
Draft a trust deed outlining the terms, beneficiaries, and purpose
Transfer initial assets into the trust
Maintain ongoing compliance, including possible tax reporting depending on residency status
This structure is particularly popular with high-net-worth individuals and family businesses. Combined with living in Cyprus, a trust offers legal clarity, tax efficiency, and peace of mind.
Living in Cyprus offers far more than financial benefits. It’s a lifestyle choice that combines comfort, convenience, and natural beauty. With over 300 days of sunshine, a relaxed Mediterranean culture, and a strong expat community, it’s no surprise that so many entrepreneurs choose to relocate here.
Affordable living: Compared to Western Europe, Cyprus has lower costs for housing, services, and dining.
Healthcare: Excellent public and private systems, with international insurance accepted widely.
Education: International schools and universities provide quality education in English.
Transport: Reliable local transport and two international airports make internal and external travel easy.
Culture: A vibrant arts, food, and music scene alongside historic and archaeological wonders.
By living in Cyprus, you also access the Non-Dom tax regime, which exempts you from taxation on dividends, interest, and rental income for 17 years. This is particularly attractive for digital nomads, investors, and retirees.
Residency can be gained through various pathways, including:
Employment or business ownership
Property investment (minimum €300,000 for fast-track residency)
Family reunification or long-term stays
All residents are eligible to apply for Non-Dom status if they were not tax-resident in Cyprus for 17 of the past 20 years.
Let’s explore a few scenarios to show how setting up a trust and living in Cyprus could work for you:
1. British Consultant Moves to Cyprus: Jane, a UK-based marketing consultant, relocates to Cyprus for the lifestyle and weather. She sets up a Cyprus LTD to invoice clients and applies for Non-Dom status. Her dividends are tax-free, and she enjoys a much lower cost of living.
2. EU Entrepreneur Establishes Holding Company: Mario from Italy sets up a Cyprus LTD as a holding company for shares in his tech start-up. He also creates a Cyprus trust to manage ownership and succession, safeguarding family interests.
3. South African Investor Seeks Stability: Ahmed, a third-country national, invests in a property development project in Cyprus. He applies for a multi-entry visa, then starts a company and later qualifies for fast-track residency. His Cyprus-based trust oversees his business and assets.
These cases highlight how flexible and beneficial the Cyprus model is for different nationalities and financial goals.
Many entrepreneurs find that starting a business in Cyprus aligns well with their long-term financial and lifestyle objectives.
To wrap up, Cyprus offers a powerful combination for anyone seeking business opportunities and a better quality of life. Whether you’re interested in setting up a trust in Cyprus, launching a company, or simply living in Cyprus, the framework here is built to support success.
With its low tax rates, simplified administrative processes, strong legal foundations, and warm climate, Cyprus continues to grow as a leading destination for global entrepreneurs.
1. What is the benefit of setting up a trust in Cyprus?
It allows for tax-efficient asset protection, estate planning, and international business structuring in a stable jurisdiction.
2. How long does it take to register a business in Cyprus?
Typically 7–10 working days after name approval and submission of documents.
3. Can I live in Cyprus and run a business without EU citizenship?
Yes, through the business visa or investor residency options, third-country nationals can live and work in Cyprus.
4. What are the tax perks of living in Cyprus as a Non-Dom?
You can receive dividend, interest, and rental income tax-free for 17 years, plus enjoy no inheritance or wealth taxes.
5. Do I need a lawyer to set up a company or trust?
Yes, a Cyprus-registered lawyer is required for document certification and trust setup, and highly recommended for company incorporation.
Ready to explore your options? Starting a business in Cyprus could be the perfect fit for your next move, combining strategic benefits with an enviable Mediterranean lifestyle.
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