Upon the incorporation of a Cyprus company and any subsequent increase of its share capital, there is capital duty payable at the Registrar of Companies.
Set out below is a summary of the Capital Duty provisions and a tip as to how this duty can be minimized.
UPON THE INCORPORATION
Authorised share capital: Upon the incorporation of a Cyprus company, a fixed amount of €105 is payable as capital duty irrespective of the amount of the share capital plus 0,6% on the authorized share capital.
Issued share capital: There is no capital duty payable if the shares are issued at their nominal value but there is a €20 flat duty if the shares are issued at a premium.
UPON SUBSEQUENT INCREASES
Authorised share capital: Additional capital duty is payable for every new increase in the authorized share capital at the rate of 0,6% on the amount of the increase
Issued share capital: There is a €20 flat duty on every issue, whether the shares issued at their nominal value or at the premium.
You can read some practical examples on Capital Duty in our Information Sheet below.