How do I start a business in Northern Cyprus?

Starting a business in Northern Cyprus depends on the type of business activity and your personal situation, with various legal forms and processes that offer tax advantages. Tax rates vary between 0% and 38% depending on the industry and service. We recommend consulting an experienced advisor, and we can connect you with a reliable contact.

Legal Forms for Company Formation:
Limited Company (LTD)
This is a limited liability company similar to a German GmbH. These companies are subject to VAT and corporate tax and are ideal for internal trade within the TRNC. Export sales can also be conducted.

International Business Company (IBC)
An offshore company subject to TRNC law, designed for international trade with numerous tax advantages. Shareholders must be foreign investors. This structure is ideal for entrepreneurs dealing with securities and consulting.

Famagusta Free Port Company (Duty-Free Company)
This model is based in a free trade zone, which is an agreement between multiple states to reduce trade barriers. It offers tax benefits for international trade in goods and services. Unlike an IBC, trade within TRNC is also allowed.

Costs and Process:
The cost to set up a company starts at around €4,000, but can be significantly higher depending on the type and purpose of the business.

You will need to appear in person for company registration, but residency in Northern Cyprus is not required.