Business in Cyprus vs Greece: Key Differences

Choosing between Cyprus and Greece is a crucial decision for entrepreneurs planning to enter the EU market. Both countries offer attractive conditions, but they differ in taxation, registration speed, and requirements for foreigners. This guide highlights the main differences—Cyprus vs Greece—and provides practical legal advice for selecting the optimal jurisdiction.

Company Registration and Administrative Procedures

• Cyprus:
  Companies can be registered in 5–10 working days through the Registrar of Companies. Documents submitted include the Articles of Association, appointment of a director and secretary, and reservation of a legal address. Foreigners can own 100% of the company, and remote registration options make the jurisdiction convenient for non-residents.
• Greece:
  Registration takes 3–6 weeks, including tax verification and notarization of documents. Entrepreneurs must open a local bank account and confirm the minimum share capital. Despite reforms, Greek bureaucracy involves more paperwork, increasing the time to start operations.

Tax Regimes and Costs

• Cyprus:
  • Corporate tax: 12.5%
  • No dividend tax for non-residents
  • Capital gains tax applies only in limited cases
• Greece:
  • Corporate tax: 22%
  • Dividend withholding tax: 5%

Cyprus is attractive for international holdings and IT companies due to double taxation treaties and no currency restrictions. Greece offers incentives for startups and small businesses, but eligibility requires demonstrating innovation and meeting formal criteria.

Rental, Offices, and Business Costs

• Cyprus: Office and retail rental is simpler and cheaper, particularly in Limassol and Nicosia. Leases are governed by the Rent Control Law, providing predictability.
• Greece: Rental markets are more centralized, commercial property taxes are higher, and lease registration with TAXISnet is required, adding administrative burden and delays.

Work Visas and Immigration Conditions

• Cyprus:
  No universal “company owner residence permit,” but the Business Facilitation Unit (BCS) program allows companies with foreign capital to hire and relocate staff with simplified procedures. BCS status can lead to accelerated pathways to permanent residency or citizenship under specific requirements.
• Greece:
  Investor and entrepreneur visas exist, but procedures are longer and require detailed justification of economic viability and financial capacity.

Conclusions and Legal Recommendations

Both Cyprus and Greece are reliable for entrepreneurs, but their strategic advantages differ:

• Cyprus: Ideal for those seeking simple administration, low taxes, and access to international operations.
• Greece: Suited for businesses focused on the domestic market and tourism infrastructure.

Professional legal advice is essential to determine the optimal business model, prepare documents correctly, and structure the company efficiently. A qualified lawyer can navigate formal and practical differences with government authorities in both countries.