Nicosia, Cyprus. Entrepreneurs and investors evaluating European jurisdictions are increasingly choosing Cyprus, citing its tax regime, treaty network and EU regulatory access through CySEC licensing. Some say they wish they had considered Cyprus earlier.
Shift in jurisdiction selection
An industry professional with more than a decade of experience in Cyprus’s regulated financial environment said international entrepreneurs and investors often assess Malta, Luxembourg, the Netherlands and Ireland before deciding on Cyprus.
Key features cited for Cyprus
The professional pointed to a 12.5 per cent corporate tax rate, an extensive network of double taxation treaties, and CySEC-based EU regulatory passporting that can provide access across all 27 EU member states through a single licence. Other cited factors included an English common law legal system and a business infrastructure that has expanded over the past decade, including licensed investment firms, payment institutions and corporate service providers.
Regulatory maturity highlighted for 2026
Cyprus’s advantages were also attributed to what was described as regulatory maturity, with CySEC tightening its framework through MiFID II alignment, stricter AML/KYC standards and enhanced substance requirements. The professional said a CySEC licence now carries increased credibility with institutional partners and banking counterparties compared with earlier periods.
Common compliance pitfalls for new entrants
The professional said some businesses underestimate regulatory requirements when setting up in Cyprus or rely on service providers that treat compliance as a box-ticking exercise, resulting in structures that may not withstand scrutiny from regulators, banks or institutional investors.
Approaches associated with successful setups
According to the professional, businesses that perform well in Cyprus treat the regulatory environment as a strategic asset, invest in AML/KYC frameworks from the outset, structure operations for substance, and work with advisors who are individually accountable.
What would you want to verify first before choosing Cyprus as a base for your business or investment activity?
