The Ultimate EU Holding
Choose the Right Cyprus Entity for your situation.
Maximize your ROI with the EU’s most efficient business structures, now updated with the 15% Corporate Tax and €22,000 personal tax-free bands and, 10-Day incorporation time and 0% Dividend Tax for Non-Doms
| Entity Type | Best For… | 2026 Key Advantage |
| Private Limited (LTD) | Most SMEs & Tech Startups | 15% Flat Tax + Asset Protection (most-chosen) |
| Holding Company | Asset & Subsidiary Management | 0% Tax on Dividends & CGT |
| Public Limited (PLC) | Large Capital Raising | Access to Stock Exchange Listing |
| Partnership | Professional Services | Flow-through Taxation |
| Sole Trader | Small Local Freelancers | €22,000 Tax-Free Threshold |
Choosing your legal structure is the most critical decision in your Cyprus journey. Under Cyprus Companies Law, and the 2026 Tax Reform, here is the technical breakdown:
The Cyprus Ltd. is the “gold standard” for international business. In 2026, it offers the perfect balance of global credibility and tax optimization.
For 2026, the Holding Company remains the EU’s premier vehicle for dividend pooling.
Designed for large-scale operations requiring more than 50 shareholders.
With the new €22,000 tax-free limit, the math for freelancers and solo-founders has shifted.
| Feature | Self-Employed (2026) | Cyprus LTD (2026) |
| Personal Tax-Free | First €22,000 (0% Tax) | First €22,000 (Salary) |
| Tax on Profits | Progressive (20% to 35%) | 15% Flat Rate |
| Social Insurance | ~16.6% on estimated income | ~8.8% on salary |
| Asset Protection | None (Unlimited Liability) | Full (Limited Liability) |
| Audit Obligation | Only if Revenue >€120,000 | Mandatory for all companies |
The Strategy: If your net profit exceeds €45,000, the flat 15% corporate tax combined with the Non-Dom dividend exemption (0%) is mathematically superior to the progressive individual tax bands.
For most international business owners and tech startups, the Private Limited Liability Company (LTD) is the best choice. It provides full protection of personal assets and allows you to utilize the 15% corporate tax rate while enjoying 0% dividend tax if you hold Non-Dom status.
The main difference is legal personality and taxation. A self-employed person is taxed as an individual (progressive rates up to 35%) and has unlimited personal liability. A company is a separate legal person taxed at 15% and protects the owner’s personal assets from business debts.
Legally, there is no minimum paid-up capital requirement for a private company. Most people set it at €1,000 to cover initial administrative costs.
For most, a Private Limited Company (LTD) combined with the 60-Day Tax Residency Rule is the best setup. It protects your personal assets while allowing you to pay yourself a tax-free salary up to €22,000.
Yes. We specialize in “In-Kind” transfers where your existing business assets are moved into a new LTD structure to optimize for the 15% tax rate.
