Cyprus is quickly becoming a preferred destination for Israeli entrepreneurs and tech founders looking to relocate their operations. Whether you’re considering moving your Israeli business to Cyprus or simply exploring tax-efficient structures for growth, Cyprus offers a unique combination: proximity to Israel, EU access, low corporate and personal tax, and a family-friendly lifestyle.
Here’s your complete guide on how to relocate your business to Cyprus, set up operations, and move your family with ease.
Why Move Your Business to Cyprus?
Whether you’re running a startup, a consulting agency, or a tech firm, the advantages of moving your business to Cyprus are compelling:
• 15% Corporate Income Tax – One of the lowest in the EU
• No tax on dividend income (under conditions)
• Access to over 60 Double Tax Treaties
• EU member with simple incorporation process
• Strategic location between Europe, the Middle East, and Africa
• English widely spoken in business and legal sectors
Relocating Your Israeli Business to Cyprus: Key Steps
Cyprus Company Formation
Registering a Cyprus private limited company (LTD) is straightforward. It typically takes 5–10 working days and includes name approval, document submission, and registrar certification. A local registered office is required.
Business Substance & Banking
You’ll need to establish substance—including a local office, director(s), and possibly employees—to benefit from tax residency in Cyprus. Bank account setup is also part of the process, with several international and local banks available.
Tax Residency for the Company
Your company becomes a tax resident of Cyprus if it is managed and controlled from within the country. This allows access to all Cyprus corporate tax advantages.
Moving Yourself: Personal Tax Residency in Cyprus
Cyprus offers two routes to personal tax residency, even if you’re not in Cyprus 183 days a year
- 183-day rule: Standard tax residency if you’re present in Cyprus for at least 183 days per calendar year.
- 60-day rule: Available if you’re in Cyprus for at least 60 days, not tax resident elsewhere, and have business and residential ties in Cyprus.
Personal income tax in Cyprus includes
- 0% tax on worldwide income up to €22,000
- No tax on dividends or interest for non-domiciled residents (Non-Dom regime)
- Up to 50% income tax exemption for high earners relocating to Cyprus
Bringing Your Family Along
Cyprus is not just a tax haven; it’s a lifestyle destination.
Some family relocation benefits include:
• International schools in English, Hebrew, Russian, and French
• High-quality private healthcare
• Easy residence permits for family members
• Safe environment with low crime rates
• A growing Israeli expat community especially in Limassol and Larnaca
Family members can be included in your relocation application, and Cyprus offers dependent visas with access to schools and healthcare.
IP Box Regime for Tech Companies
If you’re operating in software, tech, or R&D, Cyprus’ IP Box Regime is one of the most attractive in Europe
• Effective tax rate as low as 3% on qualifying IP income
• Applies to software, patents, algorithms, and tech-based IP
• Cyprus allows for cost-efficient structuring of licensing income
This is ideal for Israeli tech founders relocating to Cyprus and looking to centralize their intellectual property.
Why Israeli Entrepreneurs Choose Cyprus
- 45-minute flight from Tel Aviv
- Mediterranean lifestyle & beaches
- EU-based financial system with global credibility
- Transparent and investor-friendly legal & tax system
- Easier access to EU markets and funding opportunities
Whether you’re a solo founder or scaling a team, Cyprus gives you the tools to grow globally while saving on tax. The ability to relocate both your company and your family, operate in a stable EU jurisdiction, and enjoy the lifestyle perks makes it a truly compelling business hub for Israeli entrepreneurs.
Our team specializes in Cyprus company formations, relocation strategies, and international tax planning.
Contact us to arrange a meeting with one of our consultants and start your move.