Cyprus or Ireland: where should you start a business?
Cyprus ranks higher in the index, 11 against 17. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Corporate income tax rose from 12.5% to 15% on 1 January 2026. VAT is 19%, and deemed dividend distribution no longer applies to profits after 2025.
Trading income is taxed at 12.5% and non-trading income at 25%, according to PwC. VAT is 23%, and Budget 2027 left the 12.5% rate unchanged.
Set-up
Online registration costs €165 and name approval €10, with a lawyer signing the application. The annual return costs €20, and no minimum capital applies.
Online incorporation costs €50 and the annual return €20. No standard time applies, and on 8 October 2026 the queue ran about eight working days behind.
On the ground
A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary.
At least one director must be resident in the EEA unless the company lodges a €25,000 bond or certifies a real and continuous link.
Ownership
Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year.
Public access was suspended in November 2022, and access now depends on a legitimate interest or on being a designated person.
Residence
A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits.
The Start-up Entrepreneur Programme requires €50,000 in funding and a high-potential start-up. The Immigrant Investor Programme closed in February 2023.
Living and working
Currency
Euro.
Euro.
Time zone
UTC+2, or UTC+3 in summer.
UTC+0, and UTC+1 in summer.
Personal tax
Top rate 35% on income of €72,001 and above from 2026. A 20% capital gains tax applies only to Cyprus property; no inheritance tax.
Income above €44,000 is taxed at 40% for a single person in 2026, plus a charge of up to 8%; gains are taxed at 31%, gifts at 33%.
Flights
Larnaka and Pafos airports served 165 destinations in 42 countries in August 2026; Larnaka handled 9.91 million passengers in 2025.
Language
Greek and Turkish are the official languages and are used in the courts. Most people speak another language, usually English.
Irish is the national and first official language, and English is the second official language under Article 8 of the Constitution.
Cyprus vs Ireland: common questions
Cyprus: Corporate income tax rose from 12.5% to 15% on 1 January 2026. VAT is 19%, and deemed dividend distribution no longer applies to profits after 2025. Ireland: Trading income is taxed at 12.5% and non-trading income at 25%, according to PwC. VAT is 23%, and Budget 2027 left the 12.5% rate unchanged.
Cyprus: Online registration costs €165 and name approval €10, with a lawyer signing the application. The annual return costs €20, and no minimum capital applies. Ireland: Online incorporation costs €50 and the annual return €20. No standard time applies, and on 8 October 2026 the queue ran about eight working days behind.
Cyprus: A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary. Ireland: At least one director must be resident in the EEA unless the company lodges a €25,000 bond or certifies a real and continuous link.
Cyprus: Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year. Ireland: Public access was suspended in November 2022, and access now depends on a legitimate interest or on being a designated person.
Cyprus: A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits. Ireland: The Start-up Entrepreneur Programme requires €50,000 in funding and a high-potential start-up. The Immigrant Investor Programme closed in February 2023.
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