Cyprus IT services · EU B2B
15% Cyprus CIT (flat). EU B2B services to other VAT-registered EU customers are zero-rated under reverse charge (VIES). Founder dividends 0% SDC under Non-Dom. 50% expat exemption on senior hires. Established EN/GR-speaking talent pool. Strong professional-services ecosystem (Big-4, fintech hubs in Limassol).
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
Cyprus Ltd is the standard vehicle for IT consultancies and dev shops billing EU + global clients. Standard 15% CIT on net profit; EU B2B services reverse-charge handled cleanly via VIES; UK + US B2B services outside EU VAT scope.
If your consultancy ALSO develops and owns proprietary platforms, modules, or libraries you license to clients, Cyprus IP Box can reduce the platform-IP-derived profit slice to ~3% effective. Separate from your standard consultancy service revenue.
EU B2B services: zero-rated (reverse charge), reported on VIES. EU B2C: depends on service type (digital services → Cyprus VAT 19% / OSS for distance sales). UK / US / non-EU B2B services: outside EU VAT scope entirely.
Founder dividends: 0% SDC under Non-Dom for 17 years (with Cyprus personal residency). Senior hires (income >€55k): 50% expat exemption for first 17 years of Cyprus residency. Junior team: standard PIT scale (progressive 0-35%).
— EVERYTHING INCLUDED
— PROCESS
Cyprus Ltd in 10 working days. VAT registration if turnover crosses €15,600 threshold (typical for consultancies in Year 1). VIES registration for EU B2B services.
Online bank (Wise / Revolut Business) operational in 3-10 days for EUR + multi-currency. Cyprus traditional bank 4-8 weeks for SEPA-resident operations + larger flows. Invoicing tool integration (Xero / QuickBooks).
Yellow Slip (EU) or Pink Slip (non-EU). 60-day or 183-day rule. Non-Dom self-declaration. Personal IR1 onboarding. Achieves 0% SDC on dividends for 17 years.
Quarterly Cyprus VAT return. Annual IR4 corporate tax return + audited financials (ICPAC). Annual UBO Register update. Pricing per /pricing/accounting-and-audit transaction tiers.
Every Cyprus IT-consultancy engagement we run ships with a compliance calendar covering VAT, VIES, IR4, social insurance, PAYE. If we miss a statutory deadline through our own fault, we cover the late-filing penalty in full.
— COMMON QUESTIONS
UK B2B services to a UK-VAT-registered business are outside EU VAT scope post-Brexit. Cyprus invoice: zero-rated (no Cyprus VAT). UK client may have UK reverse-charge obligation on its side. UK B2C services: case-specific; UK MoSS-equivalent may apply for digital services.
EU B2B services to a VAT-registered EU business: zero-rated under reverse charge. Cyprus invoice: zero-rated, report on VIES quarterly. German client self-accounts the German VAT.
Generally no — software developed AS A SERVICE for a client (work-for-hire) doesn't qualify because the IP belongs to the client, not your Cyprus Ltd. IP Box applies to YOUR Cyprus-Ltd-owned IP (proprietary frameworks, platforms, internal tools you license).
Issue invoices in GBP; the Cyprus accounting books the EUR equivalent at the invoice-date ECB rate. FX gains / losses recognised on settlement. Wise Business / Revolut Business handle multi-currency at tight margins.
Cyprus social insurance applies to director salary; minimum salary considerations apply. Beyond that, dividend distribution is flexible. Combined with Non-Dom: 0% SDC on dividends → most founders take a modest salary + dividend the remainder. Optimise with accountant against actual tax brackets.
Reply within 24 hours from a senior adviser. No obligation, no upfront fee.