Relocating Your Business to Cyprus Post-Brexit: Guide
The UK's departure from the European Union has created a new set of challenges and opportunities for businesses with a global focus. For many UK-based companies, relocating to an EU member state has become a strategic necessity to maintain access to the single market and a business-friendly regulatory environment. Cyprus, with its long-standing business ties to the UK and its highly favorable tax system, has emerged as a premier destination for post-Brexit business relocation. This guide will provide a detailed look at the process, from understanding the legal and tax benefits to navigating the logistical steps for a smooth transition in 2025. For a broader overview of the local business environment, you can read our guide on The AI-Powered Marketer: Business Adviser. You can also explore our guide on Cyprus for Expats to get a good overview of the local life.
1. The Strategic Advantage of Relocating to Cyprus
Relocating a business from the UK to Cyprus is a strategic move that provides a number of key advantages that go beyond just tax incentives. These benefits are particularly appealing for companies that need to maintain a strong presence in the European Union.
Access to the European Single Market
As a full member of the European Union, Cyprus provides businesses with seamless access to the European single market, which is crucial for trade, services, and talent mobility. This allows UK companies to continue operating within the EU's regulatory framework and to serve their clients without the new tariffs, customs checks, or administrative burdens that have been introduced since Brexit. This is a crucial benefit for companies with international operations and a global client base. Our directory of business categories has all the information you need to find a partner on the island.
Favorable Tax and Legal System
Cyprus's tax and legal system is a major reason for its appeal. The country offers a highly competitive corporate tax rate of **12.5%**, which is one of the lowest in the European Union. This low rate, combined with a number of significant tax exemptions, makes Cyprus an ideal jurisdiction for a wide range of business activities, from holding companies to trading and professional services. The country also offers a number of tax incentives for foreign investors and professionals. You can read our guide on Tax Incentives for Foreign Investment in Cyprus for a more detailed look. You can also explore our guide on Cyprus Corporate Tax for a deeper dive.
A Highly Skilled and Educated Workforce
Cyprus has a well-educated, multilingual workforce, with English widely spoken and used in business. The legal and accounting professions are highly skilled, and the country's professional services sector is well-developed. This makes it easy for companies to find qualified employees and to operate in a professional and efficient environment. The government has also introduced a number of incentives to attract and retain skilled professionals, which is a major benefit for companies. You can explore our Career section to find a good employee or a new job.
2. The Relocation Process: A Step-by-Step Guide
Relocating a business to Cyprus from the UK is a straightforward process that is best handled with professional guidance. The process involves several key stages, from initial planning to a fully operational company on the island.
Step 1: Planning and Legal Advice
The first step is to engage a professional corporate services provider or a lawyer in Cyprus. They will advise you on the best legal structure for your company, such as a Limited Liability Company (LLC) or a branch of a foreign firm. This is a very important part of the process, as the legal structure has a significant impact on your tax and legal obligations. For more information, you can read our guide on Cyprus Company Registration: A Step-by-Step Guide 2025. You can also explore our guide on Cyprus Company Formation Requirements for Foreigners.
Step 2: Company Registration
Once you have a legal structure in place, the next step is to register your company with the Registrar of Companies in Cyprus. This process involves submitting a name application and all the necessary documents, such as the Memorandum and Articles of Association. The registration process is fairly efficient and can be completed in a few weeks. You can find a professional to help with this in our directory of Professional Corporate Services.
Step 3: Financial and Administrative Setup
After your company is registered, you must open a corporate bank account in Cyprus and register with the tax department and social insurance services. You will also need to find a registered office and a company secretary on the island. This is a crucial step for managing your company's finances and ensuring legal compliance. You can find more information in our finance, banking, and investment section. You can also explore our business directory of all businesses on the island to find a good partner.
Frequently Asked Questions (FAQ)
1. What are the main benefits of relocating a UK business to Cyprus post-Brexit?
The main benefits include maintaining access to the European single market, a highly favorable tax system with a low corporate tax rate of 12.5%, and a business-friendly regulatory environment. Cyprus also has a long history of business ties with the UK, which makes the transition much smoother. You can also get more help and information on our FAQ Guides section.
2. Is it better to set up a new company or a foreign branch?
The choice between setting up a new company and a foreign branch depends on your specific needs. A new limited company is a separate legal entity with limited liability for its shareholders. A branch is an extension of the parent company, and the parent company remains fully liable for all the debts and obligations of the Cyprus branch. It is always best to consult with a professional to determine the best legal structure for your business. You can read our guide on Cyprus Company Registration for more detail.
3. What is the corporate tax rate in Cyprus?
The corporate tax rate in Cyprus is a flat 12.5%, which is one of the lowest in the European Union. This low rate, combined with a number of significant tax exemptions, makes Cyprus an ideal jurisdiction for a wide range of business activities. You can read our guide on Cyprus Corporate Tax for a deeper dive.
4. Do I need to have a physical presence in Cyprus?
To be considered a tax resident of Cyprus, a company's management and control must be exercised on the island. This means that a company must have a physical presence, such as a registered office, and a director who is a resident of Cyprus. A virtual office can be a great option for a cost-effective solution. You can read our guide on Virtual Office in Cyprus for more information. You can also explore our business directory of all accommodation and lodging to find a good partner.
5. What is the process for company registration?
The process of company registration in Cyprus typically takes around two to four weeks and is handled by a professional corporate services provider or a lawyer. It involves submitting a name application and all the necessary documents to the Registrar of Companies. You can find a professional to help with this in our directory of Professional Corporate Services.
6. What are the key tax exemptions in Cyprus?
Cyprus offers a number of tax exemptions, including a full exemption on dividend income and capital gains from the sale of securities. The country also has a highly attractive Intellectual Property (IP) Box Regime, which offers a very low effective tax rate on profits generated from qualifying IP assets. You can read our guide on Tax Incentives for Foreign Investment in Cyprus for a more detailed look.
7. Do I need to hire a local workforce?
While you do not need to hire a local workforce, it is highly recommended. Cyprus has a well-educated, multilingual workforce, with English widely spoken and used in business. The government has also introduced a number of incentives to attract and retain skilled professionals, which is a major benefit for companies. You can explore our Career section to find a good employee or a new job. For more on the expat life, you can read our guide on Cyprus for Expats.
8. What is the role of a registered office and a company secretary?
A company registered in Cyprus must have a registered office and a company secretary on the island. The registered office is the official address of the company and is used for all legal and administrative purposes. The company secretary is responsible for the administration and compliance of the company. These services are typically provided by a professional corporate services provider. You can find more information in our finance, banking, and investment section.
9. Can a UK citizen get a work permit in Cyprus?
Yes, a UK citizen can get a work permit in Cyprus. However, the process is now more complex than it was before Brexit. A UK citizen is now considered a third-country national and must apply for a work visa and a residency permit. The process is typically handled by the employer and requires a number of documents, such as an employment contract and a clean criminal record. You can find more information about this in our FAQ Guides section.
10. What are some of the key sectors for a business in Cyprus?
The key sectors for a business in Cyprus include professional and corporate services, finance and banking, technology, and real estate. The government has introduced a number of incentives to attract foreign investment in these sectors, which is a major benefit for companies. You can explore our all businesses directory to find a good partner on the island. For more on the local business environment, you can check out our guide on Cyprus Company Registration.
