Pay 0% Tax
on Your Business
in North Cyprus

There are three main structures for international business owners: the Free Trade Zone (FTZ) Company, the International Business Company (IBC), and the Local Limited Company. In most cases we recommend the FTZ Company due to its complete tax exemption on international operations. We advise on the best fit during your free consultation.

An FTZ Company is established under the Free Port Trade Law 26/1983 and is also subject to Cap 113 Companies Law. It operates with a special status that exempts it from all income tax, corporation tax, VAT and customs duties on income generated from international activities. The company must not serve the local North Cyprus market.

An IBC is subject to 1% corporation tax and an annual licence fee of €5,000. It is designed for businesses operating exclusively outside North Cyprus. While less tax-efficient than the FTZ structure, it suits certain business models. We can advise whether an IBC is appropriate for your situation.

A Local Company operates under standard TRNC tax rates — currently 23.5% on taxable income. It can serve the local North Cyprus market and generally has stronger relationships with the banking system, which can make the bank account opening process more straightforward. It is best suited for businesses with physical operations inside North Cyprus.

A minimum of 2 shareholders is required. Both can be non-TRNC citizens — there is no requirement for any shareholder to be a local resident or citizen.

No. The company board requires a minimum of 1 Director and 1 Secretary. Both positions can be held by non-TRNC citizens. There is no requirement for local residency.

FTZ companies are permitted to operate from a registered address in TRNC — a physical office space is not mandatory. However, a registered local office address and at least one local employee must be maintained as part of ongoing compliance. We provide a fully managed turnkey solution covering these requirements.

FTZ Companies are fully exempt from income tax, corporation tax, VAT and customs duties on all income derived from international activities — that is, from clients and operations outside North Cyprus. This exemption is enshrined in law under the Free Port Trade Law 26/1983.

Dividend taxation depends on your personal country of tax residence and is governed by your home country's laws rather than North Cyprus regulations. As part of our service, we provide ongoing advisory to help you build tax-efficient structures tailored to your situation. Personal tax advisory is available as an additional service and is evaluated on a case-by-case basis.

If you do not withdraw a salary from your company, there is no personal income tax liability in North Cyprus. Additionally, shareholders are exempt from social security contributions in relation to the management of their company. For a complete picture of your personal tax position — including obligations in your home country — we offer personal tax advisory as an additional service, evaluated on a case-by-case basis.

If your FTZ company conducts any business with clients inside North Cyprus, that portion of income becomes subject to standard local tax rates. The 0% exemption applies strictly to international operations. We advise on structuring to ensure full compliance.

The FTZ licence fee is a one-time payment of $2,000 with no annual renewal. However, there are ongoing requirements: a registered office address in TRNC and at least one local employee must be maintained, along with annual licence fees. We provide a fully managed turnkey solution covering all of these requirements — so you face no unexpected costs or compliance surprises. Your personalised annual quote will cover accounting, audit, compliance, office and staffing requirements based on your specific business activity and transaction volume.

Yes. North Cyprus has no Tax Information Exchange Treaties with other countries. Your company's financial details can only be disclosed to the local North Cyprus Tax Office. This provides a significant level of financial privacy for international business owners.

North Cyprus has a well-developed banking sector including major Turkish banks — Ziraat Bankası, İş Bankası, Halk Bankası — as well as international bank branches including Denizbank (Emirates NBD Group), TEB (BNP Paribas Group) and Garanti Bank (BBVA Group). Multi-currency accounts in EUR, USD and GBP are available.

Yes. While the company incorporation process can be completed remotely, you must visit North Cyprus in person to open your bank account. This is a one-time requirement — all subsequent banking can be managed online. Online banking is typically activated within 1–2 days of your visit.

Account approval is entirely at the bank's discretion. Banks conduct thorough AML (Anti-Money Laundering) procedures and background checks on all shareholders. Applicants with a clean business history and straightforward business activities are generally approved without difficulty. We guide you through presenting your application in the best possible way.

Yes. North Cyprus is fully integrated with the international banking system. There are no embargoes on international funds transfers in major currencies. Standard AML procedures apply as they would with any international bank.

Local banks can open accounts in Euro (EUR), US Dollar (USD), British Pound (GBP) and Turkish Lira (TRY).

You will need: 3 proposed company names, passport copies for all shareholders (minimum 2), proof of address for all shareholders (recent utility bill, bank statement or official document), and a clean criminal record certificate from a government agency. We guide you through every step.

Yes. The criminal record document must be verified by a TRNC or Turkish Republic consulate or embassy in your country of residence. We provide clear guidance on how to obtain and certify this document wherever you are based.

Standard incorporation takes 4–8 weeks from the time all documents are received and verified. We keep you updated throughout the entire process.

The incorporation process itself can be completed remotely through a notarised Power of Attorney. The only step requiring your physical presence is opening the bank account — a one-time visit that typically takes 1–2 days.

All foreign investors are required to deposit a minimum of €25,000 as paid-up share capital into a designated local bank account. Importantly, this is your own money — it can be withdrawn once the company is fully incorporated. It is a legal formality, not a permanent cost or fee.

Yes. A notarised Power of Attorney is required to allow us to act on your behalf during the incorporation process. We provide full guidance on how to prepare and certify this document in your country.

The legal framework for Contracts, Companies and Mortgages in North Cyprus was established during the British colonial period and is closely modelled on UK law. This provides a familiar, internationally recognised and reliable legal structure for business operations and agreements.

Foreign investors are protected under the Foreign Investment Law 69/2002, which guarantees equal treatment with local investors, protection against nationalisation and expropriation, and the free movement of capital in and out of North Cyprus.

Yes. FTZ Companies are fully legal entities established under TRNC law. They operate transparently with proper accounting records, annual audits and full compliance with local regulations. Hundreds of international businesses — including well-known names in tech, finance and e-commerce — operate through this structure.

This depends on your personal tax residency and the laws of your home country. A North Cyprus company is a separate legal entity — your personal tax situation is determined by where you are tax resident. This is something we discuss in detail during your free consultation, and we always recommend consulting a tax advisor in your home country as well.

FTZ Companies are widely used by e-commerce businesses, software developers, web hosting companies, media companies, payment card operators, financial services firms, IT consultants, digital marketing agencies, telecommunications companies, online gaming operators and any business providing services to clients outside North Cyprus. The key requirement is that clients must be outside TRNC.

Yes. Import/export, manufacturing, warehousing, logistics and transit trade are all permitted activities under the FTZ structure. The Famagusta Free Zone is strategically located with port access and proximity to Turkey, Europe and the Middle East.

Yes. Service businesses including consulting, advisory, legal support, accounting, design, IT and management services are among the most common users of the FTZ structure, since they serve international clients entirely remotely with no physical goods involved.

Yes. FTZ Companies are required to maintain accounting records and submit annual accounts in the same way as local companies, as per Section 20 of the Free Port Trade Law 26/1983. Our team handles all bookkeeping, accounting and audit requirements as part of our ongoing service.

Annual costs depend on your business activity, transaction volume and the scope of accounting and audit work required. Every client is different, which is why we provide personalised quotes after understanding your specific situation — rather than publishing a one-size-fits-all price that may not reflect your actual needs.

We are a full-service chartered accountancy firm — not just a company formation agent. We provide continuing support including bookkeeping, management accounts, audit, tax compliance, banking liaison and strategic financial advice. Our team is reachable by phone, email and WhatsApp throughout the year.

We are certified chartered accountants — members of ACCA, ICAEW and ICAS, the same professional bodies that certify accountants in the UK. This means we provide legally accountable professional advice, not just paperwork processing. We have been operating in North Cyprus for over a decade with offices in both Lefkoşa and Turkey.