Company Taxation in Cyprus: What You Really Pay in 2026

15% is perhaps the most advertised number in European taxation. Every time a Greek entrepreneur hears about forming a company in Cyprus, this is the first thing they're told. And it's true — it's just not the whole truth.

At GrowthBusiness, we receive dozens of inquiries every month from professionals who have already done their calculations based on 15% and then discover the special defense contribution, the dividend tax in Greece, the cost of audited financial statements, and the substance requirement. That's when the real percentage starts to look quite different.

In this article, you'll see what a Cypriot company truly pays in 2026, from the first euro of profit until the money reaches your personal account.

The 15% corporate tax: where it applies and where it doesn't

Cyprus taxes the profits of companies that are tax residents of Cyprus at a rate of 15% on taxable profits. It is one of the lowest rates in the EU and it is real — it's not a tax deferral like in the Estonian model.

The crucial point lies in the phrase "tax resident of Cyprus." A company is considered Cypriot for tax purposes when its management and control are exercised in Cyprus. If the company is registered in Nicosia but all decisions are made from an office in Thessaloniki, the Greek authorities have every right to consider it a Greek tax resident and demand 22% corporate tax plus surcharges.

This is not a theoretical risk. It is the most common reason why Cypriot structures collapse under audit.

What is added on top of the 15%

Beyond corporate tax, a Cypriot company also encounters the following:

• Special defense contribution: imposed on interest (17%) and rents (3% on 75%). For dividends, 17% applies to tax residents of Cyprus who are domiciled — non-doms are exempt.
• GHS contribution: 2.65% on dividends and other income for individuals who are tax residents of Cyprus, with an income ceiling.
• Annual fee and compliance: audited financial statements by an approved auditor — mandatory for every Cypriot company, even dormant ones.
• VAT 19% where registration is required, with the rules for intra-community transactions and VIES.

The non-dom regime: who it really works for

The Cypriot non-domicile regime is Cyprus's truly powerful tool. An individual who becomes a tax resident of Cyprus without having a Cypriot domicile of origin is exempt from the defense contribution on dividends and interest for 17 years. Practically: they receive dividends from their Cypriot company with 0% dividend tax (excluding GHS).

The "but" is significant: you have to move. Non-dom requires you to become a tax resident of Cyprus — either under the 183-day rule, or the 60-day rule, which requires residency, employment, or a Cypriot company address and non-tax residency in another country.

If you continue to live and declare income in Greece, non-dom does not concern you at all. And this is where the real mathematical problem begins.

The Greek shareholder: the full calculation

Let's take a consultant with €100,000 in net profits per year, who lives permanently in Greece and has a Cypriot company:

Stage	Amount
Pre-tax profits	€100,000
Cypriot corporate tax 15%	-€15,000
Available for distribution	€85,000
Greek dividend tax 5%	-€4,250
Net in pocket	€80,750
Actual rate	19.25%

19.25% is still much better than the Greek IKE (22% + 5% = 25.9%). However, it's not the advertised 15%, and it doesn't yet include operating costs.

Add audited statements (usually €1,200–€2,500), accounting services, secretarial support, annual fees, and — if you want to maintain substance — a real office or at least a Cypriot address with substance. The annual operating cost of a serious Cypriot structure rarely falls below €3,000–€5,000.

Where substance "breaks down"

Cyprus is no longer 2010. With ATAD I/II, CFC rules, and automatic information exchange, a Cypriot company without substance is exposed. Greek authorities examine:

• Where the board of directors actually meets and who signs contracts
• If there is an office, staff, and operating expenses in Cyprus
• From which IP address banking transactions are made
• If the main clients and suppliers are Greek

Paying a nominee director who makes no decisions does not create substance. It creates paper.

The alternative most people are now considering

For someone living in Greece, working with clients outside Greece, and not planning to relocate, the best option today for an offshore company is no longer Cyprus but forming a company in America — specifically a Wyoming LLC.

The reason is simply numerical. A Wyoming LLC with a foreign owner and income outside the U.S. pays no federal income tax, and Wyoming has no state tax. The only tax is the 5% Greek dividend tax when you distribute profits to yourself. In the same example of 100,000 euros, we're talking about 95,000 euros net instead of 80,750 euros — a difference of almost 15,000 euros per year, with annual operating costs around 1,200 euros instead of 3,000–5,000.

Cyprus remains an excellent choice for one specific category: anyone who genuinely relocates and utilizes the non-dom status, or anyone who needs an EU VAT number and intra-community trade in goods. For everyone else, the numbers point elsewhere.

What to do before you decide

Don't start with the country. Start with three questions: where do you actually live, where are your clients located, and how much profit do you want to make each year for personal use? The answers to these determine the structure — not which country advertises the lowest tax rate.

If you want to see your own numbers side-by-side, we can go over them together in a free meeting, so you can make a decision based on facts, not impressions.

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Frequently Asked Questions

How much is corporate tax in Cyprus in 2026? Corporate tax is 15% on taxable profits for companies that are tax residents of Cyprus. Additionally, a special defense contribution may apply to interest and rents, as well as 19% VAT where registration is required.

Do I pay tax in Greece for dividends from a Cypriot company? Yes. If you are a tax resident of Greece, dividends from the Cypriot company are declared in Greece and taxed at 5%. Cyprus does not withhold tax on dividends to non-residents, so there is no double taxation, but the Greek tax is due.

What is non-dom status and how do I obtain it? It is a status that exempts from the special defense contribution on dividends and interest for 17 years. It requires you to become a tax resident of Cyprus (183 days or the 60-day rule) without a Cypriot domicile of origin. If you continue to live in Greece, you are not eligible.

Can I have a Cypriot company and live in Greece? Legally yes, but the management and control must genuinely be exercised in Cyprus. Otherwise, the company risks being considered a Greek tax resident and being taxed at 22% in Greece, with penalties and surcharges.

What is the actual annual cost of a Cypriot company? Typically 3,000–5,000 euros, including audited financial statements, accounting services, annual fee, secretarial support, and registered office. The cost increases if real substance with personnel is required.

Why is a Wyoming LLC cheaper than a Cypriot company? Because there is no corporate tax for a foreign owner with foreign source income, audited financial statements are not required, and the annual compliance cost is around 1,200 euros. The only tax is the Greek 5% on dividends.