With its tax-friendly policies, streamlined company formation, and Mediterranean lifestyle, relocation to Cyprus is becoming the smart choice for entrepreneurs, digital nomads, and international businesses. The island offers not only personal and corporate tax benefits but also attractive incentives for companies that want to relocate their operations and workforce.
Here’s everything you need to know about relocation in Cyprus with a Cyprus company, including the latest employment benefits for Third Country Nationals (TCNs).
Tax Benefits in Cyprus for Individuals and Companies
Cyprus is known for its advantageous tax system, especially for new residents and businesses:
- 12.5% corporate tax – one of the lowest in Europe
- 0% tax on dividends and interest income for qualifying Non-Doms
- No capital gains tax (except on immovable property in Cyprus)
- 50% personal income tax exemption for new residents earning over €55,000 annually (valid for 10 years)
These benefits make tax in Cyprus highly appealing for business owners, employees, and high-net-worth individuals considering relocation.
Quality of Life: Why Cyprus Is More Than Just a Tax Haven
With over 300 days of sunshine each year, Cyprus offers a relaxed lifestyle ideal for work-life balance. Expats benefit from:
- Affordable cost of living
- High-quality private and public healthcare
- Excellent international schools
- Safe communities with low crime rates
- A strong English-speaking professional environment
This mix of comfort, security, and access makes relocation to Cyprus attractive to families and solo professionals alike.
Strategic Business Location & Access to the EU
Relocating to Cyprus places your business within the European Union, giving access to:
- EU single market and regulatory framework
- Over 60 double tax treaties
- A legal system based on English common law
- Proximity to Europe, the Middle East, and North Africa
Whether you operate in tech, services, shipping, or finance, Cyprus company formation gives your business a trusted platform for international growth.
Relocation in Cyprus With a Cyprus Company: The Business Setup
Establishing a Cyprus company is fast and efficient:
- Fully remote incorporation process
- Affordable setup costs
- Confidential shareholder structures allowed
- Access to IP Box Cyprus Regime for tech and IP-driven businesses
- Eligibility to employ Third Country Nationals (TCNs) under the foreign interest company framework
Eligible Companies for Relocation in Cyprus & Employing Third Country Nationals
Cyprus has a dedicated framework that supports foreign businesses relocating with their international workforce. If your business intends to relocate to Cyprus and employ highly skilled Third Country Nationals, the government offers a structured and fast-track process.
Eligible companies must meet the following criteria:
- Majority ownership by Third Country National (TCN) Ultimate Beneficial Owners
- Or be publicly listed companies
- Operate in specific sectors such as:
- Innovative High-Tech
- Merchant Shipping
- Pharmaceuticals
- Biogenetics & Biotechnology
- Must maintain independent offices in Cyprus
Key Employment Provisions:
- Up to 70% of a company’s workforce can be made up of TCNs over a 5-year period
- Minimum salary: €2,500 gross/month
- Employment contract duration: At least 2 years
- Employee must hold a university degree or at least 2 years’ relevant experience
- Timeframe for permit approval: ~1 month
Relocation Benefits for Employees and Families:
- Spouses of relocated employees gain immediate access to the labour market
- Children and family can relocate under family reunification rules
- Temporary residence/work permits valid for up to 3 years, renewable
- Ability to apply for Long-Term Residency Status
- Social insurance contributions are transferable to the employee’s home country
- 50% personal income tax exemption on salaries over €55,000, valid for 10 years
This framework makes relocation in Cyprus with a Cyprus company a viable, structured, and advantageous solution for international businesses looking to establish a physical presence in the EU.
Whether you’re a startup founder, a tech executive, or an international business leader, relocation to Cyprus provides a rare mix of tax efficiency, operational ease, and lifestyle quality. With benefits extending to your company, your team, and your family, Cyprus is positioning itself as a premium destination for sustainable business growth and personal success.
Thinking of relocating your business?
We’re here to help with your Cyprus company formation, tax planning, and full relocation setup.
Contact us here.
