Cyprus professional firm · 15% CIT · partner Non-Dom
Cyprus's 15% flat CIT + EU B2B reverse-charge mechanism + Non-Dom 0% SDC on partner dividends + 50% expat exemption on senior-hire salaries combine into the cleanest EU base for professional-services firms (legal / accounting / consulting / fintech advisory / wealth management).
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
Most Cyprus professional-services firms use a Cyprus Limited Liability Partnership (LLP-equivalent — partnership of professionals via Cyprus Ltd structure with appropriate share-class design) OR pure Cyprus Ltd with partners as shareholder-directors. Both work; we advise based on partnership-economic structure.
Cyprus-resident partners: Non-Dom 0% SDC on dividends for 17 years. Senior partner salaries (income >€55k): 50% expat exemption for 17 years. Combined: partners take optimized salary + dividend mix with materially lower effective tax than peer EU jurisdictions.
EU B2B services: zero-rated reverse charge + VIES filing. UK B2B services post-Brexit: outside EU VAT scope (no Cyprus VAT charged). US / non-EU B2B services: outside EU VAT scope. Cyprus VAT 19% only on Cyprus-domestic B2C and certain EU consumer flows.
Cyprus Bar Association coordination for legal firms (Bar reserves on litigation + conveyancing + sworn affidavits). ICPAC + ACCA + CIPA + sector-specific professional bodies for accountants / auditors / actuaries. Cyprus EU-regulator AML compliance for financial-advisory firms (CySEC where applicable).
— EVERYTHING INCLUDED
— PROCESS
Define partner economics: equity-partner vs salaried-partner, profit-sharing methodology, voting / governance, partner-buy-in mechanics. Cyprus Ltd + Shareholders' Agreement captures the structure.
Cyprus Ltd Basic / Business tier (10 working days). Founding partners as shareholder-directors. SHA + M&AA tailored to professional-firm needs (capital accounts, drawing rights, partner-exit terms).
Senior partners relocating to Cyprus: Tax Residency + Non-Dom Bundle. 60-day rule or 183-day rule. 50% expat exemption registration. Personal IR1 onboarding.
Quarterly Cyprus VAT + VIES returns. Annual IR4 + audit. Annual partner IR1 personal returns. Cyprus payroll bureau for any associate-level staff.
We deliver Cyprus professional-services-firm structures with documented partnership economics, partner-exit mechanics, regulatory-body alignment (Cyprus Bar / ICPAC / CySEC), and clean ongoing compliance. If a Tax Department or regulatory body identifies structural deficiencies attributable to our own work, we remediate at no cost.
— COMMON QUESTIONS
Cyprus Bar Association restricts certain activities (litigation, conveyancing, sworn affidavits, certified translations) to Bar-licensed advocates. Other commercial / corporate advisory work doesn't require Bar membership. Many Cyprus law firms are hybrid Bar + ICPAC structures. International law firms often partner with Cyprus Bar firm for the reserved-activity scope.
Cyprus doesn't have a UK-style LLP. Standard structures: Cyprus Ltd with partners as shareholder-directors + SHA defining partnership economics, OR Cyprus general partnership (less common, unlimited partner liability). Most Cyprus professional firms use Cyprus Ltd.
Cyprus SHA + share-class design accommodate partner buy-in (new partners purchase shares at fair value, capital contribution) + retirement (Cyprus Ltd share buyback + Article 9(1)(g) 0% titles exemption on the disposal). Smooth partnership-economic mechanics.
UK + US B2B services: outside EU VAT scope. Cyprus invoice issued without Cyprus VAT (reverse charge notation). UK + US clients self-account on their side per their local VAT rules. See /articles/cyprus-vat-services-to-uk-post-brexit-2026.
Yes — Cyprus payroll bureau handles Cyprus-resident associates. Remote-only associates working from outside Cyprus: typically subject to their home-state employer-obligations (EU A1 certificates manage cross-border social security). Coordinate with multi-jurisdiction payroll specialists.
Yes for SALARIED income >€55k for NEW Cyprus tax residents (17 years). Partner dividends are separate (0% Non-Dom SDC). Senior partners optimize compensation as salary (with 50% exemption) + dividend (with 0% SDC) blend.
Reply within 24 hours from a senior adviser. No obligation, no upfront fee.