What Does Substance Mean?
Substance refers to the actual management and operational presence of a company in Cyprus. It requires physical offices, local directors and staff, as well as accounting records maintained on the island.
Key Requirements 2025
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Offices of at least 20m² in a commercial area.
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Majority of directors must be Cyprus tax residents.
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Local staff employed under Social Insurance.
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Actual Board of Directors meetings and minutes kept in Cyprus.
Implementation Costs
Indicatively: rent €600–1,200/month, secretarial support €1,000/month, employer contributions 20.4%.
The investment pays off with easier bank account opening, access to favorable tax conditions, and improved credibility.
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