Cyprus Company Registrations Hit a Record High in 2025

Cyprus recorded its strongest year yet for new company formations in 2025, according to figures published by the Department of the Registrar of Companies and Intellectual Property. A total of 18,858 new companies were registered during the year, up 26.5 per cent from 14,908 in 2024. The increase pushed the island's stock of registered companies towards 200,000 (it stood at roughly 197,900 at the end of March 2025).

The figure has often been reported as a 2026 story, but it is worth being precise: 18,858 is the full-year total for 2025, released early in 2026. It reflects a sustained pick-up in incorporations through the year rather than a single-month spike.

What is driving the increase

Several factors converged over 2024 and 2025 to make Cyprus more attractive to founders and international groups:

• Tax clarity. A long-signalled overhaul of the tax system was finalised at the end of 2025, removing the uncertainty that had led some businesses to postpone a decision.
• A faster, digital process. Incorporation is now largely handled online and typically completes within roughly one to two weeks.
• An established corporate framework. Cyprus offers an EU-law company regime, an extensive network of double-tax treaties, and no capital gains tax on most assets other than Cyprus-situated real estate.

The 2026 tax reform in context

From 1 January 2026, Cyprus's corporate income tax rate rose from 12.5 per cent to 15 per cent, bringing it into line with the OECD's global minimum tax for large multinational groups. The reform was approved by parliament in December 2025 and published in the Official Gazette on 31 December 2025. Even at 15 per cent, the headline rate remains among the lowest in the European Union.

The increase came with offsetting measures intended to keep the jurisdiction competitive. The Special Defence Contribution on dividends was cut from 17 per cent to 5 per cent, the deemed dividend distribution rules were abolished for profits earned from 2026, and the intellectual-property (IP Box) regime was retained. The package was designed to modernise the system while preserving the features that international investors value.

Lower friction for new entities

A separate change has made incorporation administratively simpler. Under Law 239(I)/2025, Cyprus abolished stamp duty with effect from 1 January 2026. Documents submitted to the Registrar of Companies no longer require prior assessment, payment or the affixing of a stamp, removing a step that previously added cost and delay to company filings.

A note of caution

Strong registration numbers are a useful signal of confidence, but they are not the whole picture. The count measures companies formed, not economic activity, jobs or tax paid, and a share of new entities are holding or special-purpose vehicles. Registrations are also partly offset each year by dissolutions and strike-offs. The 2025 result is a genuine record and a positive indicator, but it is best read as one measure of Cyprus's appeal as a corporate base rather than proof of a broad-based boom.

For founders weighing up Cyprus in 2026, the practical takeaway is that the jurisdiction has become easier to enter and more predictable to plan around, even as the corporate tax rate has edged up to meet international standards.