Cyprus Company Setup, Crypto Investment Structuring & Tax Guidance (prior to the 2026 Tax Reform)

Dear Client,

It was a pleasure talking to you earlier today!

As per our conversation, below you will find important points for your consideration as well as an example including the relevant taxes.

Cypriot Company Incorporation: Cost: Euro 850 + VAT + Disbursements to the Cyprus Registrar of Companies* (one-off) Timeframe: 1 month from the submission date but it always depends on the workload of the Cyprus registrar of companies + Disbursements are approximately Euro 400

Opening of a CY bank account (optional): Cost: Euro 900 + VAT (from Euro 1,000 + VAT) (one-off) Timeframe: 1 month from the submission date Kindly note that Cypriot banks do not accept crypto transactions hence you may need to open an account with Revolut Business or other similar options (the crypto investments must be under the company's name).

Non-Domiciled Application: Cost: Euro 800 + VAT (one-off) Timeframe: Approx. 3 weeks from the submission date but it always depends on the workload of the Tax Department As discussed, you must be considered as a Cyprus taxed resident which means you need to spend at least 60 days in Cyprus and no more than 183 days in any other country OR you need to spend at least 183 days in Cyprus (during a calendar year). Please keep in mind that you need to comply with the tax law in any other jurisdiction you spend days in. In addition, you will need to show business ties so that you are eligible for the non-domiciled status (please refer to points 4 and 6).

Other Services:

• Registration of the company as an employer under the social securities: Euro 150 + VAT (one-off)

• Registration of you as an employee under the company: Euro 150 + VAT (one-off)

• Registration of the company with the Cyprus Income Tax: Euro 150 + VAT (one-off)

• Ultimate Beneficial Owner (UBO) Declaration: Euro 300 + VAT (one-off) All the above mentioned services include the creation of profiles with the online governmental portals.

Accounting, Audit and Tax Services: The cost usually depends on the volume of transactions, the number of employees, the number and currency of the bank accounts, nature of business, if the company is VAT registered etc. Hence, click [link] to get an idea of the approximate cost. We will be able to provide a more accurate offer once we have more information.

Visa (Residence Permit): Since you will be registered as an employee of your company, you will need a visa which allows you to be employed in Cyprus. In order to decide which is the best option for you, please share with us: a) Your academic qualifications (diplomas, degrees etc) and an updated CV of yours b) Passport / ID c) Would you invest Euro 200k in your Cypriot company?

Example: The company buys 2 Bitcoins Euro 90k (Euro 45k each) and sells 1 Bitcoin at a price of Euro 80k (hypothetically). The below occur:

Assets: 1 Bitcoin: Euro 45,000 - This remains under the investments (assets) of the Company. Hence, no taxes apply.

Income Statement: Sales: 80,000 Cost of sales: (45,000) Profit: 35,000 Corporation Tax 15% (new rate): (5,250) Net profit (after tax): 29,750 Gross dividends: 25,000 (example) NHS 2.65% on dividends: (662.50) * This applies as you are a Cyprus taxed resident. However, you have nothing to pay for Special Defense Contribution as you will be a non-domiciled person. Net Dividends: 24,337.50

Notes:

• There is no need to include the UAE company as a shareholder. At the end of the day, you will have to declare these dividends in Cyprus where you will pay the NHS 2.65%, the same as if you were the shareholder of the company (as a physical person). Also, it is better not to connect the CY company with the UAE. You can discuss further with your advisor.

• Cryptocurrencies: In case you do not sell them, you can keep them under the company for as long as you want. There are no restrictions or taxes.

• For cryptos, the standard tax rates apply as discussed during our call. • The NHS (Gesy) has a CAP on the income of Euro 180,000 per annum. Hence, the maximum NHS you can pay is Euro 4,770.

All the above points have been confirmed with our advisor as well (after our call). In the meantime, you can schedule a call in order to discuss further about cryptos and UAE (currently traveling abroad due to business events but will be back late next week).

Dear Eleni,

Thank you so much for your time last week and for this further information.  I am currently figuring out how to proceed and will let you know once I have clarity.

Dear Client, 

Thank you very much for your email.

We are at your disposal for any clarifications or questions. Also, Kyriakos would be happy to schedule a call with you in case you want to discuss further crypto related matters or to explore your options with UAE in case it interests you. 

Kindest regards