Incorporation in Cyprus

[Alenka]

Hello everyone!

1. What is the total cost to obtain a tax residency in Cyprus? Like company + director + secretary(can be the same) + office + flat for me(it's required to obtain tax residency)

2. Is it possible to live 70 days in Cyprus and then 120 days in Georgia? Will they clarify that as a Georgian company if I don't obtain tax residency in Georgia and will have it in Cyprus?

3. Does anyone know good law firms that will help with incorporation in Cyprus, not for all the money in the world?

 

[CyprusLaw]

Hello everyone!

1. What is the total cost to obtain a tax residency in Cyprus? Like company + director + secretary(can be the same) + office + flat for me(it's required to obtain tax residency)

2. Is it possible to live 70 days in Cyprus and then 120 days in Georgia? Will they clarify that as a Georgian company if I don't obtain tax residency in Georgia and will have it in Cyprus?

3. Does anyone know good law firms that will help with incorporation in Cyprus, not for all the money in the world?

Hi,

With respect to tax residency - please note that the company's residency is separate from you tax residency. The company will have Cyprus tax residency from the day of incorporation, but you will need to create substance so that this is not challenged by the tax authorities (use nominee directors).

With respect to your personal tax residency, there is the 60 day rule and the 183 day rule, the 60 day rule basically says that if you live in Cyprus for 60 days and no more than 183 days in another jurisdiction then you will be a Cyprus tax resident.

Can I pm you with respect to the other questions you have raised?

 

[Sols]

Hello everyone!

1. What is the total cost to obtain a tax residency in Cyprus? Like company + director + secretary(can be the same) + office + flat for me(it's required to obtain tax residency)

Varies a lot depending on what services you need and how many transactions there are for accountants/auditors.

Incorporation itself is around 1,500 EUR on average. Sometimes a little higher, sometimes a little lower. Local director can cost anywhere from 500 to 2,000 EUR per year (plus cost for time spent in some cases). Secretary and registered office should be around 500-1,000 EUR average.

Accounting is where things get difficult to estimate. If you have a predictable business doing about 50 transactions per month and are in scope for VAT, you can get away with around 2,000 - 3,000 EUR/year plus audit fee which is roughly the same.

3. Does anyone know good law firms that will help with incorporation in Cyprus, not for all the money in the world?

As a general rule, I'd go for smaller boutique law firms in Cyprus. Not too small, but also not too big that they charge very high rates and treat you like a number, not a client.

https://www.hg.org/lawyers/cyprus

https://www.legal500.com/c/cyprus/commercial-corporate-and-ma/

If you don't need to work with a law firm, you can take a look at Administrative Service Providers (ASPs). They are sometimes but not always a bit cheaper.

There is a full list here: Cyprus Securities and Exchange Commission | APPROVED ASP

 

[Alenka]

Varies a lot depending on what services you need and how many transactions there are for accountants/auditors.

Incorporation itself is around 1,500 EUR on average. Sometimes a little higher, sometimes a little lower. Local director can cost anywhere from 500 to 2,000 EUR per year (plus cost for time spent in some cases). Secretary and registered office should be around 500-1,000 EUR average.

Accounting is where things get difficult to estimate. If you have a predictable business doing about 50 transactions per month and are in scope for VAT, you can get away with around 2,000 - 3,000 EUR/year plus audit fee which is roughly the same.


As a general rule, I'd go for smaller boutique law firms in Cyprus. Not too small, but also not too big that they charge very high rates and treat you like a number, not a client.

https://www.hg.org/lawyers/cyprus

https://www.legal500.com/c/cyprus/commercial-corporate-and-ma/

If you don't need to work with a law firm, you can take a look at Administrative Service Providers (ASPs). They are sometimes but not always a bit cheaper.

There is a full list here: Cyprus Securities and Exchange Commission | APPROVED ASP

Thank you!

 

[heliotrope]

Can I pm you with respect to the other questions you have raised?

CyprusLaw, I have some questions on this post and that of the OP, can you PM me?

 

[Alenka]

Hi,

With respect to tax residency - please note that the company's residency is separate from you tax residency. The company will have Cyprus tax residency from the day of incorporation, but you will need to create substance so that this is not challenged by the tax authorities (use nominee directors).

With respect to your personal tax residency, there is the 60 day rule and the 183 day rule, the 60 day rule basically says that if you live in Cyprus for 60 days and no more than 183 days in another jurisdiction then you will be a Cyprus tax resident.

Can I pm you with respect to the other questions you have raised?

Yes, pm me please