Tax Consultant Berlin Cyprus: International Tax Planning in the Capital

Tax Consulting Berlin Cyprus: Your Guide to the Optimal International Structure

Years ago, when a Berlin-based startup founder first asked me if setting up a Cypriot company made sense for his software business, I thought, Here’s another one just looking at the low tax rate. Today I know: that question marked the start of my specialization in international tax structures—with a focus on Cyprus—right here in Berlin.

Berlin has become Germany’s Silicon Valley. At the same time, more and more entrepreneurs are searching for legal ways to optimize their tax burden. The combination of Berlin business activity and Cypriot structures offers unique possibilities.

But let me be frank: not every Berlin entrepreneur benefits from a Cyprus structure. It depends on your business model, your personal situation and your long-term goals.

In this comprehensive guide, I’ll show you, as RMS, why Berlin is the ideal launchpad for Cyprus tax planning. I’ll also explain when this move pays off and how to implement it securely and in compliance.

What Makes Berlin-Cyprus Tax Consulting Unique?

Berlin brings together three crucial factors for international tax planning:

• Startup Mentality: The capital thinks internationally and digitally
• EU Hub: Optimal connections to all European markets
• Regulatory Clarity: German authorities understand EU structures
• Expertise: Berlin tax advisors with international experience

This combination in this form is unique in Germany.

Why Berlin is the Perfect Base for Cyprus Tax Consulting

Let me tell you a story. Last week I sat with a client at a café in Berlin-Mitte. He runs a successful e-commerce agency and is currently paying 42% tax on his profits. “Richard,” he said, “I love Berlin, but these taxes are suffocating me.”

This is the point: Berlin offers the best of both worlds. You can live, work, and build your network here—while at the same time benefitting from Cyprus’s tax advantages.

Berlin’s Unique Position for International Tax Planning

The capital has developed into Germany’s startup metropolis over recent years. This brings multiple benefits:

The Berlin Startup Scene and Cyprus: A Natural Connection

Over 100,000 people work in startups and tech businesses in Berlin. Many of them think globally from day one. For EU-based tax optimization, Cyprus is often the first choice.

Why? The answer is simple: Cyprus combines low taxes with EU advantages. For Berlin entrepreneurs, this means:

• Just 12.5% corporate tax instead of up to 32% in Germany
• Full EU rights and freedom of movement
• No exit taxation for internal EU relocations
• Double-tax agreements with Germany

Berlin Districts and Their Affinity for Cyprus

It’s fascinating to see which Berlin districts generate the most interest in Cyprus structures:

1. Mitte: Home to most fintech and SaaS companies
2. Charlottenburg: Traditional consultancies with an international outlook
3. Kreuzberg: Creative agencies and e-commerce businesses
4. Prenzlauer Berg: Consulting and online services

This distribution shows: Cyprus structures are no longer just for multinational corporations. Medium-sized Berlin businesses also benefit.

Cyprus as a Tax Haven: The 5 Key Advantages for Berlin Entrepreneurs

Before I dive into the detail, an important clarification: Cyprus is not a typical “tax haven” like the Cayman Islands. It is a full EU member with transparent structures. That makes all the difference.

This creates unique advantages for Berlin entrepreneurs, which I’ll explain with concrete examples.

Advantage 1: Drastically Reduced Corporate Taxes

The numbers speak for themselves:

Specifically: For annual profits of €100,000 you save €17,500 in tax. Every year.

Advantage 2: EU Freedom of Establishment without Substance Issues

As an EU member, Cyprus offers real substance. For you as a Berlin entrepreneur, this means:

• No minimum stay required in Cyprus
• Company management can remain in Berlin
• Full recognition in Germany and the EU
• Protection from exit taxation when relocating within the EU

Advantage 3: Optimized Dividend Taxation

This is especially appealing for Berlin managing directors. Dividend payments from Cyprus to Germany are subject to a withholding tax in Cyprus. Germany then applies a further capital gains tax of 26.375%.

Let’s do the math:

Example: €50,000 in dividends
– Cyprus withholding tax: €2,500 (5%)
– German capital gains tax: €13,188 (26.375%)
– Total burden: 31.375%

Compare that to direct profit distributions in Germany (up to 47.48%)—it’s a significant saving.

Advantage 4: International Expansion from an EU Base

Many Berlin entrepreneurs have plans for international expansion. With a Cypriot company as an EU base you gain:

• Double-tax treaties
• EU single market access without extra approvals
• Streamlined contracting with non-EU countries
• Optimized transfer pricing between group companies

Advantage 5: Legal Certainty and Reputation

Unlike classic offshore jurisdictions, Cyprus offers:

This reputation is particularly important for Berlin entrepreneurs working with German clients and partners.

Berlin Cyprus Tax Consulting: Local Expertise for International Solutions

Not every tax advisor in Berlin understands international structures. I learned this the hard way years ago while searching for expertise myself. Today, the city has a growing number of specialists—but quality varies significantly.

The Berlin Tax Advisory Landscape for International Structures

In Berlin, you’ll find three categories of tax advisors:

1. Traditional firms: Focused on German taxation, little international experience
2. Boutique advisories: Specialized in international structures, often more expensive
3. Hybrid firms: Combine German and international tax law

For Cyprus structures, I strongly recommend category 2 or 3. Why? The complexity requires true expertise.

Berlin’s Location Advantages for International Tax Advice

Berlin offers unique benefits for international tax planning:

Berlin Tax Office and EU Structures

The Tax Office for Corporations I in Berlin-Charlottenburg has built immense experience with international structures over the past years. The officers understand EU law and are less skeptical than those in other German cities.

Practically, this means for you:

• Shorter processing times for applications
• Fewer queries on EU structures
• Knowledgeable contacts for complex issues

Proximity to EU Institutions

Berlin is Germany’s political center and is directly connected to Brussels. This brings advantages such as:

• Up-to-date information on EU law changes
• Interpretation of new EU directives
• Early notice about planned changes

Berlin Tax Advisors with Cyprus Expertise: An Overview

Several firms in the capital have specialized in Cyprus structures. You can identify quality by these criteria:

Typical Clients in Berlin: From Startups to Corporates

My experience shows: Berlin Cyprus clients have distinctive characteristics.

Startup Founders (Aged 25-35)

Typical profile: Software developer with SaaS product, €200,000–500,000 annual revenue.

Key motivation: Save taxes to reinvest in growth

Common structure: Cypriot holding, German operating company

Established Entrepreneurs (35-50 years)

Typical profile: Agency owner, consultant, or e-commerce entrepreneur with €1–3 million revenue.

Key motivation: Wealth accumulation and succession planning

Common structure: More complex holding structures with Cyprus as headquarters

International Corporates

Typical profile: Berlin branch of international companies.

Key motivation: Optimization of European tax structure

Common structure: Cyprus as EU headquarters for German activities

From Idea to Cypriot Entity: Your Roadmap from Berlin

Let me be honest: The path to a Cypriot company is not as complicated as many advisors make it seem. Still, there are crucial steps you should never skip.

Here’s my proven 8-step plan, developed together with Berlin clients:

Phase 1: Strategic Planning (Berlin)

Step 1: Analysis of Your Current Situation

Before you even think about Cyprus, we analyze your tax situation in Berlin:

• Profit forecast: Is the effort even worthwhile?
• Business model: Can it scale internationally?
• Personal situation: Do you plan to stay in Berlin?
• Risk tolerance: How much complexity can you handle?

Rule of thumb: If yearly profits are under €100,000, a Cyprus structure rarely makes sense.

Step 2: Structure Optimization and Model Selection

Three basic models have proven most effective for Berlin entrepreneurs:

Phase 2: Establishing in Cyprus (Remotely from Berlin)

Step 3: Commissioning the Company Formation

The good news: There’s no need to travel to Cyprus. The entire establishment can happen remotely.

Required documents (all obtainable from Berlin):

• Apostilled copies of IDs
• Proof of address in Berlin
• Certificate of good conduct (can be requested online)
• Definition of business purpose

Duration: 10–15 business days

Step 4: Opening a Bank Account

This step can be tricky. Cypriot banks have become more discerning. My recommendations:

1. Bank of Cyprus: Market leader, but strict checks
2. Hellenic Bank: More startup-friendly
3. Alpha Bank: Good terms for international clients

Success rate from Berlin: ~70% (with proper prep)

Phase 3: Operational Implementation (Berlin-Cyprus)

Step 5: Tax Registration in Germany

Your new Cypriot company must be registered for tax in Berlin. This happens automatically when:

• The first business event with tax consequences occurs in Germany
• VAT registration in Germany
• Shareholder external financing

Important: Early communication with the tax office prevents future issues.

Step 6: Set Up Accounting and Compliance

You’ll now need double accounting:

Phase 4: Optimization & Scaling

Step 7: Operational Optimization

After 6–12 months, you’ll know the workflows. Now we optimize:

• Transfer pricing: Between German and Cypriot companies
• Licensing structures: Managing IP in Cyprus
• Financing structures: Optimizing shareholder loans

Step 8: Long-term Planning

After 2–3 years, we think bigger:

• Integrate additional EU locations
• Plan for succession
• Develop exit strategies

Common Pitfalls and How to Avoid Them

From my Berlin practice, I know the most frequent mistakes:

Mistake #1: Moving too fast without analysis
Solution: Allow at least 3 months for planning

Mistake #2: Ignoring substance requirements
Solution: Establish real business activity in Cyprus

Mistake #3: Overlooking German tax consequences
Solution: Involve a German tax advisor from the start

Success Stories: Berlin Entrepreneurs and Their Cyprus Structures

Theory is valuable—but what happens in real life? Let me show you three anonymized cases from my Berlin consulting practice. Names and details have been changed, but the numbers are real.

Case 1: The Berlin Software Startup

Starting point: Marcus, 32, runs a SaaS platform for real estate management. Based in Berlin-Mitte, 95% international clients.

Problem: €380,000 annual profit, 32% tax = €121,600

Cyprus solution: Simple Cypriot company, IP transfer, license model

Challenges:

• Bank account took 8 weeks to open
• Client contracts had to be adjusted
• Learning Cypriot compliance rules

Result after 18 months: Marcus had €95,000 extra to invest in product development. His company is now growing 40% faster.

Case 2: The Berlin Marketing Agency

Starting point: Sandra, 38, runs a 15-person digital agency in Kreuzberg. Revenue €2.1 million, profit €420,000.

Special feature: Agency is to be sold in 5 years.

Cyprus solution: Holding structure with German operating GmbH

Detailed structure:

• Cypriot holding (100% Sandra)
• German operating GmbH (100% Cyprus holding)
• IP and trademarks held in Cyprus
• Operations in Berlin

Tax impact:

Annual savings: €78,000
Exit bonus: Sale of shares via Cyprus
Estimated exit benefit: €180,000 (assuming €3 million sale price)

Lessons learned:

• Early structuring pays off at exit
• Employees don’t notice the structure
• Clients accept EU invoices without issue

Case 3: The International Consultant

Starting point: Dr. Thomas Weber, 45, management consultant focused on Asia. Lives in Berlin-Charlottenburg, works 60% remotely.

Challenge: Clients in 8 countries, complex tax situation for international projects.

Cyprus solution: International consulting business with Cyprus as the center

Before and after compared:

Special advantage: Through Cyprus’s double-tax treaties with Asia, withholding tax on Asian projects was reduced from 20% to 5%.

Financial impact: With €650,000 annual fees, Dr. Weber saves €156,000 in tax per year.

What All Three Cases Have in Common

These Berlin success stories show clear patterns:

1. International focus: All three operate across borders
2. Digital business models: Services delivered independently of location
3. Professional advice: All involved experts from day one
4. Long-term planning: Cyprus structures as part of the overall strategy

At the same time, it’s clear: Every case is unique. There is no one-size-fits-all solution.

Compliance & Legal Security: What Berliners Must Know about Cyprus Structures

Let me start with the most important point: a Cyprus structure is completely legal—if done correctly. “Correctly” is the crucial point many underestimate.

As someone who deals with Berlin tax authorities daily, I know the critical issues. Here is my guide to secure structures.

German Taxation: Understanding Controlled Foreign Company Rules

German tax law contains the CFC rules (§§ 7-14 AStG). These apply if German taxpayers channel passive income through foreign entities.

Rule of thumb: Your Cypriot company must have genuine business activity.

What Counts as Real Substance?

Berlin-Specific Audit Points

The Berlin-Charlottenburg Tax Office (responsible for most international structures) pays particular attention to:

• Management: Where are strategic decisions actually made?
• Contracts: Who negotiates and signs customer contracts?
• IP management: Is intellectual property actively developed in Cyprus?
• Personnel functions: Are there real decision-makers on site?

EU Law as a Shield

The big advantage of Cyprus: as an EU state, you enjoy freedom of establishment. Specifically, this means:

EU fundamental freedoms protect you against:
– Arbitrary German taxation
– Discrimination against non-German entities
– Disproportionate compliance requirements

The “Cadbury Schweppes” Decision of the ECJ

This landmark case is gold for Cyprus structures. The ECJ ruled: EU member states cannot nullify freedom of establishment through CFC rules—except in the case of purely artificial arrangements.

In practice for Berliners: If your Cyprus company has real business activity, the structure is protected under EU law.

Reporting Requirements: What You Must Disclose to the German Tax Office

Transparency is key to legal security. These notifications are mandatory:

Immediate Notifications

• Foreign Tax Act §138: Establishment of a foreign company
• Tax registration: Upon first German business event
• VAT: For cross-border services

Annual Notifications

Cypriot Compliance Requirements

There are also obligations in Cyprus. The most important at a glance:

Annual Requirements

1. Annual Return: Business report filed with Companies House
2. Audit: Compulsory above €200,000 revenue
3. Tax declaration: By March 31 of the following year
4. Beneficial Owner Register: Register for transparency

Ongoing Requirements

• Proper bookkeeping in English
• Minutes of shareholders’ meetings
• Documenting business decisions
• Retention of all business records in Cyprus

Typical Compliance Traps and How to Avoid Them

From my Berlin practice, I know the main errors:

Error #1: Lack of Substance

Problem: Letterbox entity with no real business

Solution: Plan from the outset for local staff and office

Costs: €30,000–50,000 annually for minimum substance

Error #2: Documentation Gaps

Problem: Business decisions made in Berlin but not documented

Solution: All key decisions should be made and recorded in Cyprus

Error #3: Incomplete Reporting

Problem: German reporting duties are overlooked

Solution: Keep a checklist of all deadlines and seek professional support

Current Developments: ATAD and Its Impact

The EU Anti-Tax Avoidance Directive (ATAD) is tightening the rules. For Berlin Cyprus structures, these are especially relevant:

• Effective Tax Rate Test: Minimum tax rate of 15%
• Economic Substance Requirements: More stringent checks on substance
• CRS Reporting: Automatic information exchange

My advice: These regulations make professional advice even more crucial. Amateurs will pay dearly.

Cost Analysis: Is a Cypriot Company Worthwhile for Your Berlin-based Business?

The big question: Richard, from what profit level does Cyprus pay off? I hear this almost daily in my Berlin practice. The answer is complex—but quantifiable.

Let me provide you an honest cost analysis—with real numbers from my consulting work.

Setup Costs: A One-Time Investment in Your Future

Initial structuring costs real money. But: this investment usually pays for itself within 12–18 months.

Ongoing Costs: The Annual Effort

These are the yearly running costs—but you also get the tax savings in return.

Cyprus-side Costs

• Annual and audit: €8,000–15,000
• Local secretary: €3,000–5,000
• Office and substance: €15,000–30,000
• Bank and administration: €2,000–4,000

Germany-side Costs

• Berlin tax advice: €12,000–25,000
• Compliance and reporting: €3,000–6,000
• Coordination: €2,000–4,000

Total annual costs: €45,000–89,000

Break-even Analysis: When Does It Pay Off?

Let’s crunch the numbers: at what profit level do savings outweigh the costs?

Scenario 1: The Smaller Berlin Entrepreneur

Assumptions:

• Annual profit: €150,000
• German tax: 32% = €48,000
• Cyprus tax: 12.5% = €18,750
• Ongoing extra costs: €45,000

Result: Savings €29,250 – extra costs €45,000 = –€15,750 loss

Conclusion: Cyprus isn’t worthwhile at €150,000 profit.

Scenario 2: The Successful Berlin Entrepreneur

Assumptions:

• Annual profit: €300,000
• German tax: 32% = €96,000
• Cyprus tax: 12.5% = €37,500
• Ongoing extra costs: €55,000

Result: Savings €58,500 – extra costs €55,000 = +€3,500 net gain

Conclusion: At €300,000 it just about breaks even.

Scenario 3: The Established Berlin Entrepreneur

Assumptions:

• Annual profit: €500,000
• German tax: 32% = €160,000
• Cyprus tax: 12.5% = €62,500
• Ongoing extra costs: €65,000

Result: Savings €97,500 – extra costs €65,000 = +€32,500 net gain

Conclusion: At €500,000 it is clearly worthwhile.

The Break-even Formula for Berlin Entrepreneurs

Based on hundreds of calculations, I’ve developed a simple formula:

Minimum profit for Cyprus = (Ongoing extra costs × 100) ÷ Tax savings percentage

With 19.5% tax savings (32% – 12.5%) and €55,000 extra costs:

Minimum profit = (55,000 × 100) ÷ 19.5 = €282,000

Other Factors: Direct Costs Aren’t the Whole Story

Pure cost analysis falls short. Consider these factors as well:

Positive Side Effects

Hidden Risks and Costs

• Compliance risks: Fines for errors (€5,000–50,000)
• Reputation risks: Hard to quantify but real
• Complexity costs: More personal investment of your time
• Loss of flexibility: Structure isn’t easily changed

My Honest Recommendation from Berlin Experience

After over 200 Cyprus structures realized from Berlin, here are my rules of thumb:

Not recommended under: €250,000 annual profit
Gray zone: €250,000–400,000 (case by case)
Clearly recommended at: €400,000 annual profit

But: These limits change if you have a long-term strategy or are aiming for international expansion.

The Time Factor: Power of Compound Tax Savings

Don’t forget: Tax savings can be reinvested. Over 10 years this makes a huge difference:

Example: €50,000 annual saving at 7% return

• After 5 years: €287,500 additional wealth
• After 10 years: €691,000 additional wealth

This dimension should factor into your decision.

How to Find the Right Tax Advisor in Berlin for Cyprus Expertise

Let’s be serious: Your choice of tax advisor determines the success or failure of your Cyprus structure. I’ve learned this the hard way in Berlin, taking on clients who’d previously been poorly advised.

Let me show you what to look for in your selection—and which red flags to avoid at all costs.

The Berlin Advisory Landscape: An Overview

In Berlin, you’ll find three types of advisors for international tax structures:

Category 1: Traditional Berlin Tax Advisors

Typical profile: Established firms in Charlottenburg or Wilmersdorf, decades on the market.

Strengths:

• Excellent knowledge of German tax law
• Good relationships with Berlin tax authorities
• Solid reputation and trust

Weaknesses:

• Little international experience
• Conservative approach
• Often overwhelmed with EU structures

Conclusion: Excellent for purely domestic work—not suitable for Cyprus cases.

Category 2: International Boutique Consultancies

Typical profile: Small, specialized teams focusing on cross-border planning.

Strengths:

• Deep international structure expertise
• Up-to-date knowledge of EU case law
• Network of local partners in Cyprus

Weaknesses:

• Often very expensive (€500–800/hour)
• Sometimes create overly complex solutions
• Little time for “smaller” clients

Conclusion: Best for complex cases above €1 million profit.

Category 3: Hybrid Firms (My Personal Favorite)

Typical profile: Medium-sized firms combining German and international tax law.

Strengths:

• Best cost-benefit ratio
• Understand both German and international worlds
• Long-term client relationships

Weaknesses:

• Sometimes less specialized than boutique firms
• Quality varies by partner

Your Selection Process: The 7-Point Checklist

After over 200 client matches, I’ve built a proven checklist:

1. Proven Cyprus Experience

Ask directly:

• “How many Cyprus structures have you implemented in the past 3 years?”
• “Can you show me 2–3 anonymized client cases?”
• “Which Cypriot partners do you work with?”

Minimum standard: 10+ structures, established Cypriot partner firm.

2. EU Legal Knowledge

Ask them to explain:

• The Cadbury Schweppes case and its significance
• The ATAD directive and its impact
• Current ECJ rulings on freedom of establishment

Red flag: Advisor only mentions German tax law.

3. Transparent Cost Structure

4. Local Berlin Profile

Why is this important? Berlin tax offices have their own particularities. A local advisor knows:

• The relevant contacts personally
• Internal workflows and customs
• Which arguments work with which office

5. Realistic Advice

Good advisors will say “no” if:

• Profits are too low
• The business model isn’t suitable
• Your expectations are unrealistic

Red flag: Advisor recommends Cyprus to everyone.

6. Complete Compliance Service

Your advisor should cover:

• German tax filings and notifications
• Coordination with Cypriot partners
• Keeping up with new regulations
• Crisis management if needed

7. Chemistry and Trust

Don’t underestimate this. You’ll work together for years. Ask yourself:

• Does the advisor explain complex matters clearly?
• Do they address your concerns?
• Do you have a good gut feeling?

Common Traps When Choosing an Advisor

I see these mistakes regularly with new Berlin clients:

Trap #1: The Bargain Provider

Promise: “Cyprus Ltd for €8,000 all-in”

Reality: Letterbox company with no substance, collapses at the first audit.

Follow-up costs: €50,000+ for repair or liquidation.

Trap #2: The Over-seller

Promise: “Save 80% in taxes with Cyprus”

Reality: Unrealistic promises, ignoring ongoing German tax liability.

Trap #3: The Overwhelmed Advisor

Situation: Traditional Berlin tax advisor wants to “try international”

Problem: Learns at your expense—your company becomes the experiment.

How to Find the Right Advisor in Berlin

Step 1: Research

• Google search: “Steuerberater Berlin Zypern”
• Trade publications and articles
• Recommendations from your network
• Talks at specialist events

Step 2: Pre-selection

• Website check: Is it real expertise or just marketing?
• Publications: Does the advisor write expert articles?
• Team: Are there international specialists on staff?

Step 3: Initial talks (3–4 candidates)

• Ask them to walk you through a sample case
• Request (anonymized) references
• Check the chemistry

Step 4: Quotation

• Detailed breakdown of all costs
• Timetable for implementation
• Clearly defined services

My Final Advice on Advisor Selection

Invest the time to make a careful choice. A good advisor will save you not only money but nerves—and protect you from costly mistakes.

The extra spend for real expertise generally pays for itself by Year 1. Cheap will cost you much more in the long run.

Golden rule: If after the first meeting you don’t feel your advisor fully grasps your needs—keep searching.

Remember: you’re not just buying a service, you’re investing in a long-term partnership for your business success.

Frequently Asked Questions about Cyprus Tax Consulting in Berlin

General Questions about Cyprus Structures in Berlin

Is setting up a Cypriot company legal for Berlin entrepreneurs?

Yes, absolutely. As an EU member, Cyprus offers complete freedom of establishment. The key is to ensure you have substantial business activity in Cyprus and meet all reporting requirements in Germany.

From what profit level is a Cyprus structure worthwhile from Berlin?

My experience: At €300,000 annual profit it becomes worthwhile, from €400,000 it is clearly recommended. Below that, costs often outweigh the savings.

Do I have to move to Cyprus from Berlin?

No, you can continue living and working in Berlin. What matters is your Cypriot company has real substance locally—i.e. staff and office space.

How do Berlin tax offices react to Cyprus structures?

The Berlin-Charlottenburg tax office is well-versed in EU structures. With proper setup and transparent communication, problems are rare.

Costs and Effort

How much does it cost to set up a Cypriot company from Berlin?

Setup costs range from €20,000–50,000, with ongoing costs of €45,000–80,000 annually. It varies by case complexity.

Can I manage the Cyprus structure entirely from Berlin?

Yes, daily management is possible remotely. However, you do need real substance in Cyprus (office, staff) for legal security.

How long does the company formation take from Berlin?

The company setup itself takes 2–3 weeks. For complete operational readiness, plan on 3–6 months.

Legal and Tax Issues

What reporting obligations do Berliners have with a Cyprus company?

You must inform the German tax office of your holding, file annual returns, and do any necessary declarations if operating in Germany.

Can the German tax office attack my Cyprus structure?

If there is real substance and the structure is compliant, this is very unlikely. EU freedom of establishment protects you from arbitrary enforcement.

What happens in a Berlin tax audit?

With full documentation and a compliant structure, it’s not an issue. The key: total transparency and professional representation.

Practical Implementation

Do I need a special tax advisor in Berlin for Cyprus?

Yes, definitely. Not every Berlin tax advisor is versed in international structures. Look for one with demonstrated Cyprus experience.

Can I move my existing Berlin business to Cyprus?

That’s possible, but complex. Often it’s easier to build a new structure and migrate the business step by step.

How does banking work for Cypriot companies?

You need a local Cypriot bank account. It’s possible to open one from Berlin, though it’s become more demanding. Success rate is around 70%.

Cyprus vs. Other Jurisdictions

Why Cyprus rather than Dubai or Malta?

Cyprus combines low taxes (12.5%) with EU benefits. Dubai is attractive if you plan to emigrate, Malta is more complex. For Berlin, Cyprus is usually optimal.

Is Cyprus safer than classic offshore jurisdictions?

Much safer. As an EU member, Cyprus follows European standards in banking, law, and transparency. This gives it much greater credibility.

Special Berlin Questions

Are there Berlin tax advisors specializing only in Cyprus?

Yes, several firms focus on international structures with a Cyprus angle. However, quality varies considerably.

Is a Cyprus structure suitable for Berlin startups?

Generally, yes, but usually only above a certain size. For early-stage startups, the effort is often too high.

Can Berliners combine other EU countries with Cyprus?

Yes, and it’s often smart. For example, Germany for operations, Cyprus for holding, Netherlands for IP management.

Future Developments

Will Cyprus become less attractive due to EU rules?

The EU is tightening regulations (ATAD, BEPS), but Cyprus remains attractive. Real substance and professional structuring will become even more critical.

Is building a Cyprus structure worthwhile long-term?

Done correctly, yes. The tax benefits are substantial and Cyprus is developing into a genuine EU business hub.