Corporate and Commercial law in Cyprus FAQ

How can I invest in Cyprus?

• As an individual
• Through a company
• Through a trust
• Through a limited or unlimited partnership
• A combination of all the above

How can I establish a Joint Venture in Cyprus? What are the most common forms of such a joint venture?

There is no generally accepted definition of a joint venture in the law. A joint venture describes a relationship between two or more parties who invest together in a business endeavor. The joint venture can take various forms, the most common of which are:

A contractual joint venture:

Under a contractual joint venture, the parties are bound by contract without forming a formal limited or unlimited partnership. The advantage of this form is independence, cheapness, and simplicity. However, the disadvantages include taxation, unlimited liability, and possible uncertainty due to the absence of a legal code to regulate certain aspects of the venture.

A partnership joint venture:

This form provides certainty on provisions of partnership law. In limited liability partnership joint ventures, one partner can have unlimited liability while others have limited liability. The disadvantages are tax issues, difficulty in organizing an exit strategy, and challenges in raising finance.

A corporate joint venture:

In a corporate joint venture, the parties form a new company to conduct the business. They enter into a shareholders’ agreement and may modify the articles of association to reflect their agreement. The advantages include certainty, limited liability, tax benefits, and versatility, such as using different classes of shares. Disadvantages include formal requirements and statutory obligations for filing annual reports and audited accounts.

If I buy or invest in a company in Cyprus, can I get a passport?

Cyprus no longer operates a citizenship by investment programme. The Cyprus Investment Programme was abolished on 1 November 2020, so buying or investing in a Cypriot company does not lead to a passport. Company investment can, however, support an application for permanent residence. For the routes available today, see our immigration guide.

Does Cyprus have treaties with other countries to avoid double taxation?

Yes, Cyprus has an extensive network of treaties to avoid double taxation.

Should I use a Cyprus International Trust or a company?

This depends on your goals. A Cyprus International Trust is typically used in estate and international tax planning and asset protection. A company is typically used to conduct business or to accumulate dividends from businesses abroad. Sometimes both may be used.

Why do I need to have a shareholders’ agreement with the other shareholder in my company?

A shareholders’ agreement will regulate the relationship between the shareholders. It may provide for different rules than the default rules in the law, such as both shareholders approving significant transactions or each shareholder having the right to appoint a director on the board. On many occasions, the articles of association of the company may also have to change, but this depends on each specific case.

Can I ensure anonymity/confidentiality about my ownership of a Cypriot company?

Yes, you can do this. Contact us for more information.

What kind of documents will I need to provide when opening a bank account for a company?

Banks need to establish the personal and economic profile of the beneficiary of a company or the person opening a personal account. They need to verify that the money being brought to Cyprus does not derive from illegal activities. For more information, you can request our banking guide.

Can you assist me with VAT, accounting and taxes?

Yes, we can offer, or recommend a third party if you would prefer, to offer accounting and VAT services and direct you to independent professionals for the accounting and auditing services required.