Estonia vs Cyprus: where to incorporate?
Cyprus is no longer the 12.5% jurisdiction: the rate rose to 15% on 1 January 2026. What is still genuinely strong there is personal, not corporate — the non-dom regime. Figures verified August 2026.
Estonia vs Cyprus: where to incorporate?
Cyprus is no longer the 12.5% jurisdiction: the rate rose to 15% on 1 January 2026. What is still genuinely strong there is personal, not corporate — the non-dom regime. Figures verified August 2026.
Estonia vs Cyprus: where to incorporate?
Cyprus is no longer the 12.5% jurisdiction: the rate rose to 15% on 1 January 2026. What is still genuinely strong there is personal, not corporate — the non-dom regime. Figures verified August 2026.
The short answer
The short answer
The short answer
Choose Estonia if
Choose Estonia if
Choose Estonia if
You reinvest most of what you earn, you sell into the EU and need an EU VAT number, or you want accounting, invoicing and contracts in one subscription.
Choose Cyprus if
Choose Cyprus if
Choose Cyprus if
You are moving to Cyprus yourself and want the non-dom regime, you are building a holding or IP structure, or you want dividends out with no withholding.
The number that decides it
Cyprus now charges 15% as profit is earned, not 12.5% as most pages still claim. Estonia charges 0% until profit leaves, then 22% of the pre-tax pot.
Cyprus now charges 15% as profit is earned, not 12.5% as most pages still claim. Estonia charges 0% until profit leaves, then 22% of the pre-tax pot.
Estonia and Cyprus at a glance
Estonia and Cyprus at a glance
Estonia and Cyprus at a glance
🇪🇪 Estonia
🇪🇪 Estonia
🇪🇪 Estonia
🇨🇾
🇨🇾
Cyprus
Cyprus
Cyprus
Entity type
Osaühing (OÜ)
Osaühing (OÜ)
Private company limited by shares (Ltd)
Private company limited by shares (Ltd)
Minimum capital
€0.01, and you can defer paying it
€0.01, and you can defer paying it
None in law, usually €1,000 nominal
None in law, usually €1,000 nominal
State fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€175 to the Registrar — €10 for the name, €165 to incorporate
€175 to the Registrar — €10 for the name, €165 to incorporate
Time to register
15 minutes to an hour — but the e-Residency card takes weeks
15 minutes to an hour — but the e-Residency card takes weeks
Usually five to ten working days
Usually five to ten working days
Can you do it remotely
Yes, fully — you collect the e-Residency card in person once
Yes, fully — you collect the e-Residency card in person once
Yes, through a provider — but banking normally needs a visit
Yes, through a provider — but banking normally needs a visit
Mandatory local roles
Legal address and contact person, both FIU-licensed
Legal address and contact person, both FIU-licensed
A director, a company secretary and a registered office in Cyprus
A director, a company secretary and a registered office in Cyprus
Tax on profit you keep
0%, for as long as you keep it
0%, for as long as you keep it
15% from 1 January 2026, up from 12.5% — charged whether you distribute or not
15% from 1 January 2026, up from 12.5% — charged whether you distribute or not
Tax on profit you take out
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
No withholding tax on dividends to non-residents
No withholding tax on dividends to non-residents
VAT and threshold
24%, register above €40,000
24%, register above €40,000
19%, register above €15,600 — the lowest threshold here
19%, register above €15,600 — the lowest threshold here
Mandatory audit
Not at founder scale
Not at founder scale
Yes, though a review report is allowed below €300,000 of turnover
Yes, though a review report is allowed below €300,000 of turnover
Annual filings
One annual report to the Business Register; monthly returns with payroll or VAT
One annual report to the Business Register; monthly returns with payroll or VAT
Audited financial statements, an annual return and a tax return
Audited financial statements, an annual return and a tax return
Banking as a non-resident
EU IBAN through Estonian banks, or Wise and Revolut
EU IBAN through Estonian banks, or Wise and Revolut
Slow and document-heavy, though easier than Malta
Slow and document-heavy, though easier than Malta
Market access
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
Year-2 running cost
From €124 for the mandatory address and contact person, plus accounting
From €124 for the mandatory address and contact person, plus accounting
The audit or review, the secretary, the registered office and accounting — the €350 annual levy was abolished in 2024
The audit or review, the secretary, the registered office and accounting — the €350 annual levy was abolished in 2024
What each one is
What each one is
What each one is
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
The Estonian private limited company. Registered fully online through e-Residency, taxed only when profit leaves the company, and inside the EU single market with an EU VAT number.
🇨🇾
🇨🇾
Private company limited by shares (Ltd)
Private company limited by shares (Ltd)
Private company limited by shares (Ltd)
The Cypriot private limited company. An EU company with an English-language legal system, a strong treaty network, and — since January 2026 — a 15% corporate rate rather than the 12.5% it was famous for.
Setting the company up
Setting the company up
Setting the company up
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Cyprus
Filed with the Registrar of Companies for €175 and usually registered within one to two weeks, through a local provider. Nothing about the filing is hard; the friction is the bank account and the audit that follows.
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
Cyprus
Filed with the Registrar of Companies for €175 and usually registered within one to two weeks, through a local provider. Nothing about the filing is hard; the friction is the bank account and the audit that follows.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Cyprus
€175 to the Registrar and no statutory minimum capital, so the entry cost is low. The €350 annual levy that used to apply was abolished from 2024, which genuinely improved the running cost.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
Cyprus
€175 to the Registrar and no statutory minimum capital, so the entry cost is low. The €350 annual levy that used to apply was abolished from 2024, which genuinely improved the running cost.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Cyprus
A director, a company secretary and a registered office in Cyprus. There is no residency requirement for directors, but if you want the company to be tax resident in Cyprus, management and control has to be exercised there — which usually means local directors in practice.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
Cyprus
A director, a company secretary and a registered office in Cyprus. There is no residency requirement for directors, but if you want the company to be tax resident in Cyprus, management and control has to be exercised there — which usually means local directors in practice.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Cyprus
Single and multi-shareholder companies, no nationality limits. Holding structures, IP and shipping are the traditional strengths, supported by an 80% IP-box deduction and a notional interest deduction.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
Cyprus
Single and multi-shareholder companies, no nationality limits. Holding structures, IP and shipping are the traditional strengths, supported by an 80% IP-box deduction and a notional interest deduction.
Money, tax and filings
Money, tax and filings
Money, tax and filings
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Cyprus
15% from 1 January 2026, raised from 12.5% as part of the OECD Pillar Two alignment. It is charged in the year profit is earned, whether it stays in the company or not.
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
Cyprus
15% from 1 January 2026, raised from 12.5% as part of the OECD Pillar Two alignment. It is charged in the year profit is earned, whether it stays in the company or not.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Cyprus
No withholding tax on dividends paid to non-residents. For a Cyprus tax resident individual under the non-dom regime, dividends are also free of the usual defence contribution for seventeen years.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
Cyprus
No withholding tax on dividends paid to non-residents. For a Cyprus tax resident individual under the non-dom regime, dividends are also free of the usual defence contribution for seventeen years.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Cyprus
19%, with registration above just €15,600 — by far the lowest threshold in this comparison, so almost every real company registers immediately.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
Cyprus
19%, with registration above just €15,600 — by far the lowest threshold in this comparison, so almost every real company registers immediately.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Cyprus
Slow, document-heavy and de-risked, though not as difficult as Malta. Most small companies run on EU payment institutions and use the Cypriot bank only when a client demands it.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
Cyprus
Slow, document-heavy and de-risked, though not as difficult as Malta. Most small companies run on EU payment institutions and use the Cypriot bank only when a client demands it.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Cyprus
Audited financial statements — a review report is allowed below €300,000 of turnover and €500,000 of assets — plus an annual return and a tax return. Heavier than Estonia, lighter than Malta.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
Cyprus
Audited financial statements — a review report is allowed below €300,000 of turnover and €500,000 of assets — plus an annual return and a tax return. Heavier than Estonia, lighter than Malta.
Which one fits your business
Which one fits your business
Which one fits your business
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
You reinvest instead of paying yourself
You reinvest instead of paying yourself
Profit left in the company is not taxed at all, so every year you do not distribute is a year you do not pay.
You sell into the EU
You sell into the EU
An EU VAT number plus OSS and IOSS access is something a non-EU company cannot give you.
You want one bill for the back office
You want one bill for the back office
Accounting, invoicing, contracts and e-signing in one subscription instead of four suppliers.
🇨🇾
🇨🇾
Cyprus
Cyprus
Cyprus
You are moving to Cyprus yourself
You are moving to Cyprus yourself
The non-dom regime is a personal benefit, and it is the strongest reason to choose Cyprus.
You are building a holding or IP structure
You are building a holding or IP structure
The treaty network, the IP box and the notional interest deduction are built for exactly that.
You want dividends out with no withholding
You want dividends out with no withholding
Nothing is withheld on the way out to a non-resident, where Estonia charges 22/78 inside the company.
Where Estonia loses
Where Estonia loses
Where Estonia loses
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
The non-dom regime
The non-dom regime
Seventeen years of tax-free dividends for a new Cyprus tax resident. Estonia offers nothing comparable to a person who actually moves.
A rate that applies as you earn
A rate that applies as you earn
At 15% on retained profit Cyprus is worse than Estonia’s 0% — but predictable, with no event that triggers a bigger bill later.
A deep treaty network and an IP box
A deep treaty network and an IP box
For holding structures and intellectual property, Cyprus has tooling Estonia simply does not offer.
How incorporation with Enty works
How incorporation with Enty works
How incorporation with Enty works
Open with e-Residency
Open with e-Residency
1-3 days
€60
+ €290 state fee
1
5-minute application on Enty
2
We file directly with the Estonian registry
3
Company registered!
1-3 days
Plan to get an e-Residency card? Buy incorporation now and get €150 off
We lead you through the whole process
No e-Residency yet
No e-Residency yet
14 days
Fastest formation with a notary on the market
€1,000
+ €290 state fee
1
10-minute application on Enty
2
20–30 min video call — identity check and notarisation, fully online
3
We file directly with the Estonian registry
4
Company registered!
14 days
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Methodology and sources
Methodology and sources
Methodology and sources
Registrar fees of €10 for the name and €165 to incorporate, and the abolition of the €350 annual levy from 2024, from the Department of Registrar of Companies and Intellectual Property. The 15% corporate rate effective 1 January 2026 and the VAT threshold of €15,600 from the Cyprus Tax Department. Audit and review-report thresholds — €300,000 of turnover and €500,000 of assets — from the Companies Law and the Institute of Certified Public Accountants of Cyprus.
Estonian state fee of €290 — the €265 registry fee plus a €25 API fee. Cost comparisons are computed in our own cost model, not quoted from third parties.
Figures verified 21 August 2026.
Figures verified
Frequently asked questions
Frequently asked questions
Frequently asked questions
Is Cyprus still 12.5%?
No. Corporate income tax rose to 15% on 1 January 2026, as part of aligning with the OECD Pillar Two minimum.
A large share of comparison pages, and even some advisers’ own sites, still quote 12.5% — that figure is out of date.
Is Cyprus still 12.5%?
No. Corporate income tax rose to 15% on 1 January 2026, as part of aligning with the OECD Pillar Two minimum.
A large share of comparison pages, and even some advisers’ own sites, still quote 12.5% — that figure is out of date.
Is Cyprus still 12.5%?
No. Corporate income tax rose to 15% on 1 January 2026, as part of aligning with the OECD Pillar Two minimum.
A large share of comparison pages, and even some advisers’ own sites, still quote 12.5% — that figure is out of date.
Do I need an audit in Cyprus?
In principle every Cyprus company is audited. Below €300,000 of net turnover and €500,000 of total assets, sustained for two consecutive years, a cheaper review report can substitute.
Estonia has no audit requirement at founder scale.
Do I need an audit in Cyprus?
In principle every Cyprus company is audited. Below €300,000 of net turnover and €500,000 of total assets, sustained for two consecutive years, a cheaper review report can substitute.
Estonia has no audit requirement at founder scale.
Do I need an audit in Cyprus?
In principle every Cyprus company is audited. Below €300,000 of net turnover and €500,000 of total assets, sustained for two consecutive years, a cheaper review report can substitute.
Estonia has no audit requirement at founder scale.
Is there still a €350 annual levy?
No. The €350 annual company levy was abolished from 2024 onwards, so it no longer forms part of the running cost.
Anything still quoting it is describing the old regime.
Is there still a €350 annual levy?
No. The €350 annual company levy was abolished from 2024 onwards, so it no longer forms part of the running cost.
Anything still quoting it is describing the old regime.
Is there still a €350 annual levy?
No. The €350 annual company levy was abolished from 2024 onwards, so it no longer forms part of the running cost.
Anything still quoting it is describing the old regime.
What is the non-dom regime and does it apply to me?
It is a personal regime, not a corporate one: a new Cyprus tax resident who was not domiciled there can receive dividends and interest free of the special defence contribution for seventeen years.
It only helps if you actually move — which is exactly the opposite of what e-Residency is for.
What is the non-dom regime and does it apply to me?
It is a personal regime, not a corporate one: a new Cyprus tax resident who was not domiciled there can receive dividends and interest free of the special defence contribution for seventeen years.
It only helps if you actually move — which is exactly the opposite of what e-Residency is for.
What is the non-dom regime and does it apply to me?
It is a personal regime, not a corporate one: a new Cyprus tax resident who was not domiciled there can receive dividends and interest free of the special defence contribution for seventeen years.
It only helps if you actually move — which is exactly the opposite of what e-Residency is for.
How does the VAT threshold compare with Estonia?
Cyprus is much stricter. VAT registration starts at €15,600, against €40,000 in Estonia, so almost every real company registers straight away.
The rate is lower — 19% against 24% — but you reach it far sooner.
How does the VAT threshold compare with Estonia?
Cyprus is much stricter. VAT registration starts at €15,600, against €40,000 in Estonia, so almost every real company registers straight away.
The rate is lower — 19% against 24% — but you reach it far sooner.
How does the VAT threshold compare with Estonia?
Cyprus is much stricter. VAT registration starts at €15,600, against €40,000 in Estonia, so almost every real company registers straight away.
The rate is lower — 19% against 24% — but you reach it far sooner.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported