In the rapidly expanding world of e-commerce, choosing the right country to register your e-commerce business can make a huge difference in your operations & profits and how easy it is to run everything. Cyprus is one of the best places in Europe to base your e-commerce company. It offers low taxes, easy access to the European market, and strong professional services to support your business.
What is a Cyprus Company?
Think of a Cyprus company like a container that holds your online store, your payments, your profits, and your business activity. It’s a legal structure (called a “limited liability company” or LLC) registered with the Cyprus Registrar of Companies under the Cyprus Companies Law, Cap. 113.
Your Cyprus company will have:
- A company name
- Shareholders (the owners)
- Directors (who run the company)
- A registered office in Cyprus
- Accounting records and yearly audit
- Bank / Merchant Accounts
How Is the Company Operated?
Running a Cyprus company is straightforward:
- You register the company through a licensed provider like Asterisk Corporate Services.
- We help appoint directors and shareholders, who can be you or nominees for confidentiality.
- We open a corporate bank account, either in Cyprus or with a European fintech institution.
- You operate your e-commerce business as usual — sell online, receive payments, pay suppliers.
- We handle all the accounting and tax filings according to Cyprus and EU regulations.
This means you can live anywhere, but your company is based in Cyprus, enjoys EU benefits, and is managed professionally.
Why Cyprus Is Perfect for E-commerce
1. Low Corporate Tax
Cyprus has one of the lowest corporate tax rates in the EU — just 12.5% on net profits (revenue less tax deductible expenses). This means if your online store earns €100,000 in profit (profit, not revenue), you pay only €12,500 in tax.
Even better:
- No tax on dividends sent abroad to shareholders who are not tax residents of Cyprus (exceptions apply).
- No tax on selling shares or certain assets.
2. Easy VAT Compliance with EU
Because Cyprus is in the EU, your Cyprus company can register for VAT and use the One Stop Shop (OSS) system. This lets you handle VAT for all EU countries from one place. It’s very useful if you sell physical or digital products across Europe. You can also open merchant accounts and operate/sell within EU with more ease.
3. Ultra-Low IP Tax for Digital Assets
If your business has intellectual property (like software, trademarks, or online tools), you can use Cyprus’s IP Box regime. Effective tax rate can be as little as 2.5% tax on profits from that IP. More information can be found here.
4. Strong Double Tax Treaty Network
Cyprus has tax treaties with over 65 countries, including major markets like the UK, Germany, China, and India. This can reduce or eliminate tax on payments between countries.
5. Easy Residency Options
Want to move to Cyprus and enjoy a sunny, EU lifestyle? The 60-day tax residency rule means you can become a Cyprus tax resident by spending just 60 days per year in the country (under certain conditions).
Real Examples of E-commerce and Tech Companies in Cyprus
Cyprus is home to a growing ecosystem of digital and e-commerce companies. Some notable and current players include:
- eToro, a major global trading platform, operates out of Cyprus under EU regulation.
- Wargaming.net, the game development company behind World of Tanks, has its European headquarters in Cyprus.
- Unlimint, a fintech payment provider servicing online merchants, operates through its Cyprus structure.
- XLMedia, a performance marketing company focused on digital customer acquisition, has a base in Cyprus.
These companies show that Cyprus is not just a tax haven — it’s a serious tech and e-commerce hub with real infrastructure and talent.
Banking and Payments
Opening a business bank account is essential. We assist in opening bank accounts in:
Traditional Cyprus banks (subject to successful completion of compliance procedures)
European fintech platforms (like Revolut, Wise, Payoneer, etc.)
Payment gateways (Stripe, PayPal, Checkout.com)
We ensure your Cyprus company can accept payments from global customers and pay suppliers easily.
Accounting, Reporting, and statutory Compliance
Your Cyprus company will be fully compliant with EU and OECD standards:
- Bookkeeping and Accounting (IFRS)
Cyprus companies are legally required to maintain proper accounting books and records in accordance with IFRS, the internationally recognized financial reporting framework. - Annual Audit
All Cyprus companies must undergo an annual statutory audit conducted by a licensed auditor, regardless of size or activity level. - Tax Filings
Companies must file annual corporate income tax returns with the Cyprus Tax Department, disclosing income, expenses, and tax liability. - VAT Reporting & OSS
If registered for VAT, businesses must submit periodic VAT returns and, if applicable, use the OSS system for reporting EU-wide B2C sales of goods and services. - Substance Requirements
In certain cases, especially for tax residency or banking purposes, companies may be required to demonstrate local substance, such as having offices, employees, or active management in Cyprus.
At Asterisk, we manage all of these for you so that you can focus on running your business.
Selling on Amazon, eBay, and Other Marketplaces
Many entrepreneurs use Cyprus companies to operate their Amazon FBA, eBay stores, Etsy shops, or Shopify websites. These platforms allow EU-registered businesses to access a wide customer base, and a Cyprus company provides the necessary EU VAT registration and legal structure to do so.
Using a Cyprus company to manage marketplace accounts enables smooth onboarding with payment processors, EU VAT compliance via OSS, and efficient profit repatriation with no withholding taxes.
How We Can Help You
At Asterisk Corporate Services, we guide you from start to finish:
We register your Cyprus company quickly and correctly
We help set up banking, merchant accounts and payment systems
We manage accounting, audit, and tax filings
We provide local directors, registered office, and substance as needed
We support ongoing compliance and give strategic advice
Whether you’re selling fashion, dropshipping electronics, launching a SaaS platform, or monetizing digital content — we offer the corporate setup to help you grow.
Let’s Build Your Business
Cyprus is a stable, affordable, and business-friendly EU location with all the right ingredients for e-commerce success.
Contact Asterisk Corporate Services today to learn how we can support your global business — from strategy to full administration. Email us at contact@asterisk.cy for more information.
Simplify your business. Maximize your profits. Do it with Asterisk — your Cyprus partner in e-commerce.
