Katerina Way on what founders face when relocating to Cyprus in 2027

Cyprus relocation strategist Katerina Way spent 20 years in corporate M&A and business relocation and has opened hundreds of companies. We asked her what founders should know before they move.

Companies like BrainRocket and Centalion Group are leaving Cyprus. Should founders be worried?

KW: It’s a signal, not a verdict. BrainRocket has closed its Limassol offices, and Centalion Group announced on 2 October that it will move its headquarters to Singapore. The business chamber warned that Cyprus’s advantages cannot be taken for granted. Their reasons haven’t been made public, so I won’t go into the details. What I can say is that founders choose Cyprus every year, not once. Winning in 2027 means giving your business and your people a reason to stay.

What’s the biggest mistake founders make when relocating?

KW: Treating registration as relocation. A private limited company can typically be registered in 7 to 10 business days. But it is just the beginning, since the registration alone doesn’t give you a bank account, residence permits for your team or a right to hire anyone you want. You may need a foreign-interest company, which adds a further process and specific substance requirements. A brass plate doesn’t make a headquarters. A leadership team living and working here does.

What changes for hiring and payroll in 2027?

KW: Two things. First, the salary floor: employees from outside the EU must earn at least €2,500 gross a month, and the transitional €2,000 exception for existing key personnel ends on 31 December 2026. Second, the staffing review: companies commit to at least 30% Cypriot or EU staff within five years, and from 2 January 2027 the ratio is checked for new recruitment, with a miss assessed case by case. The good news is that there is no cap on third-country hires and no labour market check for highly paid staff. I suggest mapping your local hiring pipeline in year one, not year five.

How do you keep executives and their families here?

KW: I’d start with the numbers. Employment income above €55,000 qualifies for a 50% exemption for 17 tax years, if the person wasn’t Cyprus-resident for 15 consecutive years beforehand. 

For example, if an executive’s salary is €100,000, with the 50% exemption, the taxable income is treated as €50,000 instead of the full €100,000 gross salary. Under the 2026 progressive brackets (which include an increased tax-free threshold of €22,000), the income tax drops from around €23,300 to around €6,900, resulting in a saving of roughly €16,400 a year. Note, these estimates cover personal income tax only. 

Then there is the family side of the equation. In Limassol, a one-bedroom apartment averages €1,000 a month, while a two-bedroom reaches around €1,500. Picture the frustration of a founder watching their lead engineer struggle just to find a place to live or a school for their children. The permit was the easy part. Housing, schooling and a partner’s career decide whether your people stay.

Want a second pair of eyes on your move? Instagram @katerynaway  |  Telegram @FullPotentialPro

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Doesn’t the rise to 15% corporate tax kill Cyprus’s advantage?

KW: No. Corporate income tax rose from 12.5% to 15% on 1 January 2026, but the participation exemption, the exemption on gains from selling securities, the Notional Interest Deduction and the IP Box all survived. The IP Box’s effective rate is roughly 3%, and tax losses can now be carried forward for 7 years instead of 5. The rate is the headline. The structure is the story. I recommend asking which structure fits the expected income, and then getting it confirmed in writing.

What about dividends?

KW: This is where many owners and executives find the real value. Qualifying dividends received by a holding company aren’t taxed at 15%. For individuals, the special defence contribution on dividends fell from 17% to 5%, and non-domiciled residents remain exempt from that contribution. Eligibility has conditions, so it is best to confirm them.

What should a founder do in the first 90 days?

KW: Here is my checklist.

How do you help founders?

KW: Spreadsheets don’t move companies. People do. With my trusted team of experts we help founders and executives with the part of the move that paperwork misses. That includes a clear strategy for your move, coordinated with the licensed tax and legal advisers, company setup in the right order, premises and banking, hiring and permit planning, executive and family relocation, and all administrative support for housing, schooling and local integration.

You covered it all with such a wide range of services! What is your final message for founders?

KW: Cyprus still rewards the prepared. In 2027, the founders who win won’t be chasing a tax rate. They’ll be building teams, offices and compliance that make leaving the harder choice.

Start the conversation:  Instagram @katerynaway  |  Telegram @FullPotentialPro  |  LinkedIn: Katerina Way

Katerina Way is the author of Graceful & Gutsy: The Woman’s Guide to Thriving in Today’s Modern Business World, a book on business conduct and nonverbal influence, available on Amazon as an audiobook, e-book and paperback.

Author: Din Kumar