Open your Cyprus LP
The Cyprus LP is an excellent alternative to the US LLC for those looking for tax-free business in the EU.
Cyprus LP: 0% Income Tax in the European Union
The Best EU Alternative to US LLCs
If you are considering tax optimization opportunities within the European system, you don't need to look only at models like the US LLC.
As a leader in structuring and managing US LLCs in the European market, we are fully aware of the attractiveness and advantages of a tax-free environment like the one offered by an LLC.
However, especially for companies targeting the European market, a Cyprus-based company may stand out as a more advantageous option.
The Limited Partnership in Cyprus
- 0% tax as long as you have no clients in Cyprus
- Allows (officially) for multiple partners or shareholders
- EU VAT number
- Better access to EU banking and payment service providers
- Automatically provides proof of income
- Compliance with EU data protection rules
In this context, we have thoroughly studied European alternatives and identified a solution that may be particularly relevant for this target group: the Limited Partnership (LP) in Cyprus.
This legal form is recognized as a tax-transparent entity in Cyprus and can be a more advantageous option than a US LLC in certain situations.
Although the US LLC has its own advantages, in some cases it can increase tax and legal complexity. In such instances, forming a Cyprus LP can be considered less complex while still being tax-efficient.
In certain situations, the Cyprus Limited Partnership can be a great alternative to the US LLC.
There is already a detailed article on this topic on our blog. There is no one-size-fits-all solution—everything depends on your individual situation, your intentions, and your preferences. But with Settee's experience and contacts, your chances of achieving your goal are extremely high.
See for yourself—there is nothing a brief overview can't solve. Note: You should not serve clients in Cyprus with this structure, otherwise local taxation may apply.
Open your Cypriot LP
The Cypriot LP is an ideal entity for anyone looking for a company to provide services, dropshipping, FBA, affiliate marketing, and various other digital businesses within the European Union.
You can find more information and documents here:
Simple. Transparent. No surprises.
Is the Cyprus LP right for me?
We Recommend Opening a Cyprus LP For:
- Clients Wishing to Operate in the European Market: An excellent choice for entrepreneurs and investors looking to establish a presence in the European market, taking advantage of free trade benefits and easy access to the Eurozone.
- Service Providers Who Need a VAT Number: Recommended for service providers who require a VAT (Value Added Tax) number to operate in Europe.
- Those Who Want Access to the Best European Banking Services: A Cyprus LP provides access to the European banking system, including cutting-edge financial services and stability for international transactions.
- Companies with Multiple Partners: The LP structure is ideal for companies with multiple partners, allowing for flexibility in the distribution of profits and responsibilities among them.
- Clients Providing Remote Services in Europe Seeking Tax Optimization
We Do Not Recommend Opening a Cyprus LP For:
- Clients Intending to Provide Services Within Cyprus: The Cyprus LP structure is better suited for companies operating internationally.
- Companies Seeking Direct Business with the USA: For companies intending to conduct transactions or operations directly with the USA, a Cyprus LP may not be the most efficient structure, as tax and regulatory complications can arise due to cross-jurisdictional taxation. A US-registered company may be more advantageous.
- Those Seeking a Higher Level of Anonymity: While a Cyprus LP offers a degree of privacy, there are jurisdictions better suited for those seeking greater anonymity, such as locations known for strict secrecy policies, like Nevis or the USA.
Frequently Asked Questions (FAQ)
The registration process typically takes from 2 weeks to 1 month from the time we receive your documents.
No, you do not need to be present in person to complete the registration.
KYC (Know Your Customer) documents include a copy of your passport, CV, and proof of address.
KYC stands for Know Your Customer, which refers to the requirement for companies to better understand their clients.
The KYC requirements for incorporating your company in Cyprus are in place to ensure that Cyprus can continue to offer all its well-known benefits.
The biggest difference between an LP and an LTD is the taxation.
An LP is a pass-through entity. Profits are taxable directly at the individual partner level as business income. There is no taxation in Cyprus as long as there are no local clients. It is ideal for partners who do not have tax residency, or who can obtain an exemption for profits derived from abroad.
An LTD is a corporate entity. Profits are taxable at the company level at 15%. When a partner wants to withdraw profits, they distribute dividends, which generally have more favorable personal tax treatment in most countries with worldwide income taxation.
Yes, it is possible to have a company as a partner or director.
A Cyprus LP requires a minimum of 2 members. However, you can appoint another company as the second partner.
There are several options available to you. We would be happy to advise you!