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Company Relocation to Cyprus
If you are considering an intra-European company transfer (relocation) to for a more favourable tax regime and/or lex societatis[1] the Republic of Cyprus (“Cyprus”) constitutes a preferred candidate to establish or relocate your business within the European Union. Cyprus combines a competitive corporate tax system, EU market access, a Common law legal framework and a stable and developing business environment, making it an attractive destination for European companies looking to relocate or expand within the European Union.
One of the main advantages offered by relocating to Cyprus is its company friendly tax regime. From 2026, Cyprus has a 15% corporate income tax rate,[2] which remains among the lowest in the EU. Depending on the nature of your business, it may also benefit from the Cyprus IP Box, with an effective tax rate of around 3% on qualifying intellectual property profits, including income from eligible software, patents and other intellectual property.
Furthermore, Cyprus also operates within a legal system strongly influenced by English common law, providing an environment that many international businesses find familiar and transparent with a strong authoritative basis and a plethora of established company related case law.
Beyond the corporate tax related benefits and the legal certainty provided by established case law transferring a company to Cyprus maintains full access to the EU Single Market.
Following the adoption and implementation of the EU Directive 2019/2121[3] on cross-border conversions, mergers and divisions the framework for companies considering cross-border restructuring and relocation within the EU has been further strengthened. In light of the above Directive and the development of case law from the CJEU[4] including Polbud[5] and Edil Works[6] the relocation of one’s company and by extension lex societatis can be as simple as transferring their company’s registered office. Professional advice is important to determine the appropriate structure and ensure compliance with Cyprus and EU requirements.
[1] (Applicable Law)
[2] Income Tax (Amendment) (No. 40 Law of 2025, Law 244(I)/2025, paragraph 24(b))
[3] Directive (EU) 2019/2121 of the European Parliament and of the Council of 27 November 2019 amending Directive (EU) 2017/1132 as regards cross-border conversions, mergers and divisions [2019] OJ L321/1.
[4] Court of Justice of the European Union.
With strong fiscal performance, declining public debt and established banking infrastructure, Cyprus can be a practical destination for businesses seeking an efficient and friendly jurisdiction to carry out its European Business. Our team of professional are available to offer advice on the benefits of your company’s relocation to Cyprus.
(Our legal team can assist with the process, from choosing the right structure and handling the transfer procedure to supporting the relocation of management and employees.)