5 Reasons Why You Should Start a Business in Cyprus in 2025
Cyprus has long attracted international entrepreneurs thanks to its strategic location, favorable tax conditions, and well-developed infrastructure. The island has become an ideal platform for businesses in industries such as international trade, IT, logistics, finance, and startups.
For Polish entrepreneurs, Cyprus offers opportunities that are hard to overlook. Here are five key reasons why setting up a company in Cyprus could be a profitable solution in 2025:
1. Favorable Tax System
Cyprus stands out as having one of the most attractive tax policies in the European Union:
- Corporate income tax is only 12.5%, making it one of the lowest in the EU.
- IP-Box regime: Up to 80% of intellectual property income is exempt from taxation. This brings the effective tax rate down to 2.5%, which is particularly beneficial for IT companies and innovative projects.
- Additional tax benefits:
- 0% tax on dividends, inheritances, and donations.
- Personal income tax exemption for earnings up to €19,500 per year.
- 50% income tax reduction for foreign specialists earning over €55,000 per year.
These conditions allow businesses to significantly reduce their tax burden and allocate saved funds to business growth.
2. Easy Business Registration and Operations
Registering a business in Cyprus is simple and convenient. Key advantages include:
- Remote registration – all steps, including document submission, can be completed remotely through certified lawyers.
- Minimal requirements – a company can be established with just one shareholder and one director, and they do not need to be residents.
- English as the primary business language – most business processes, including documentation and communication with government institutions, are conducted in English.
These features make Cyprus particularly attractive for entrepreneurs who want to minimize bureaucratic obstacles.
3. Strategic Location
Cyprus is situated at the crossroads of Europe, Asia, and Africa, providing access to over 500 million consumers in the EU and neighboring markets.
- Well-developed transport infrastructure – modern ports and airports enable efficient logistics.
- Support for innovation – the government invests heavily in the IT sector and startups. For example, under the THALIA 2021–2027 program, €150 million has been allocated for startup ecosystem development.
These initiatives make Cyprus a convenient hub for both international expansion and local business growth.
4. Cost Optimization
Running a business in Cyprus is more cost-effective than in most EU countries.
- Lower rental and employment costs – commercial property rental prices are 10–20% lower than the European average.
- Low operational costs – affordable prices for internet, communication, and utilities.
- Tax benefits – no dividend tax and a low corporate tax rate make financial management more efficient.
These factors make Cyprus an ideal choice for entrepreneurs looking to reduce costs without compromising quality.
5. Comfortable Living for Entrepreneurs and Their Families
Cyprus is a perfect place for those who want to combine business success with a high quality of life:
- Safety – the country ranks first in safety among nations with a population under 5 million.
- Climate – a mild Mediterranean climate makes living and working on the island exceptionally pleasant.
- Education and healthcare – high-quality international schools and a well-developed healthcare system ensure convenience for families with children.
- Affordable real estate – the market offers a wide range of properties, from apartments to seaside villas.
These conditions make Cyprus an attractive destination for people who value work-life balance.
Cyprus offers a unique combination of tax advantages, strategic location, affordable costs, and a high standard of living. For Polish entrepreneurs, it could be the perfect platform for international expansion.
