Gibraltar or Cyprus: where should you start a business?
Cyprus ranks higher in the index, 11 against 14. 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 tax is 15% on a territorial basis, and 20% for utilities. There is no VAT, but a Transaction Tax on goods applies from 15 July 2026.
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.
Set-up
A certificate usually takes three days, according to a 2018 note, and a same-day service exists. Incorporation costs £110, including capital duty.
Online registration costs €165 and name approval €10, with a lawyer signing the application. The annual return costs €20, and no minimum capital applies.
On the ground
Every company needs a registered office in Gibraltar and a company secretary. A sole director cannot also act as the company's secretary.
A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary.
Ownership
The beneficial ownership register has been public since 2020. The Government said in February 2026 that it will shortly be free to any individual.
Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year.
Residence
Category 2 status requires net assets of £2 million and approved accommodation. A self-employed route also exists under the 2026 Regulations.
A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits.
Living and working
Currency
Gibraltar pound, at par with sterling.
Euro.
Time zone
UTC+1, or UTC+2 in summer.
UTC+2, or UTC+3 in summer.
Personal tax
Top rates are 28% or 39%, by system; Category 2 residents pay tax on £118,000 only. No capital gains, inheritance or wealth 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.
Flights
Only UK destinations are listed: Birmingham, Bristol, London Gatwick, London Heathrow and Manchester, served by British Airways and easyJet.
Larnaka and Pafos airports served 165 destinations in 42 countries in August 2026; Larnaka handled 9.91 million passengers in 2025.
Language
English is the language of instruction in schools.
Greek and Turkish are the official languages and are used in the courts. Most people speak another language, usually English.
Gibraltar vs Cyprus: common questions
Gibraltar: Corporate tax is 15% on a territorial basis, and 20% for utilities. There is no VAT, but a Transaction Tax on goods applies from 15 July 2026. 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.
Gibraltar: A certificate usually takes three days, according to a 2018 note, and a same-day service exists. Incorporation costs £110, including capital duty. 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.
Gibraltar: Every company needs a registered office in Gibraltar and a company secretary. A sole director cannot also act as the company's secretary. Cyprus: A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary.
Gibraltar: The beneficial ownership register has been public since 2020. The Government said in February 2026 that it will shortly be free to any individual. Cyprus: Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year.
Gibraltar: Category 2 status requires net assets of £2 million and approved accommodation. A self-employed route also exists under the 2026 Regulations. Cyprus: A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits.
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