Tax advantages
Corporate tax is 0% for a Free Zone company on activity outside Northern Cyprus and 10% for a local company.
Forming a company in Northern Cyprus.
We form two types of company in Northern Cyprus: the Free Zone company for activity directed outside Northern Cyprus and within the Free Zone, and the local company for the domestic market. Formation, accounting and tax processes are carried out by our team in Nicosia.We form two types of company in Northern Cyprus: the Free Zone company for activity abroad and the local company for the domestic market.
- Handled from our own office.
- Not an EU member; not the same country as South Cyprus
- Corporate tax 0% or 10%
- Since 1996
- Turkish lira account available
There are two company types in Northern Cyprus: the market your activity is directed at determines which one fits.
How each item works is shown in the diagram beneath it.Each item is shown in the diagram.
Eastern Mediterranean location
The official language is Turkish and the currency is the Turkish lira; company accounts are opened in lira and foreign currency.
Formation with a single visit
You are required to be in Northern Cyprus once for the signature and bank account; the application, approval and registration processes are carried out on your behalf.One visit is enough; the process is run on your behalf.
Free transfer of funds
Funds can be transferred abroad freely.
Applications, approval and registration are handled from our own office in Northern Cyprus. Your point of contact does not change after formation is complete.Application, approval and registration are handled from our Northern Cyprus office.
- Our own office in Northern CyprusDocument and authority procedures are not handed to a distant intermediary.
- The same team from formation to accountingThe team that handles formation also continues with bookkeeping and filings.
- One point of contactAn adviser assigned to you; direct access during office hours.
Ortac GlobalNicosia · Şht. Murat İlhan Sokak No:5, Kumsal
A general framework is set out below; an assessment specific to your situation is made in a consultation.
Your Northern Cyprus company
Free Zone company0%No corporate or income tax and no VAT apply to activity directed outside Northern Cyprus and within the Free Zone.
Local companyNormal taxCorporate tax, income tax and VAT apply to activity in the Northern Cyprus domestic market.
- Corporate tax
- 0% · 10%0% for a Free Zone company on activity outside Northern Cyprus, 10% for a local company.
- Dividends
- 0% · 15%Tax-free in Northern Cyprus for a Free Zone company; 15% income tax for a local company.
- VAT
- None · 16%A Free Zone company is not a VAT payer; for a local company the standard rate is 16%.
- Fund transfers
- FreeFunds can be transferred abroad freely. The rules of the country in which you are tax resident apply separately.
Do I automatically get a tax advantage by setting up a company? No. Any advantage depends on real activity, management, tax residency, the type of income and the rules of the country concerned.
Ask your questionsWhether and when tax arises in your country of residence depends on its rules, in particular when profit passes to you as personal income. In Northern Cyprus, the tax depends on the company type.Tax in your country of residence follows its own rules, in particular when profit passes to you as personal income.
- Your customerIn Northern Cyprus or abroadInvoice
The invoice is issued by your company; payment is made to the company account.
- Your companyIn Northern Cyprus0% · 10%
No tax arises for a Free Zone company on activity outside Northern Cyprus; a local company pays 10% corporate tax and 15% income tax on dividends.
- YouIn your country of residenceDeclaration
Declared in line with the rules of your country of residence, in particular when profit is distributed to you as a dividend.
Details and sources
- If the company is managed from your country of residence
A company whose activities are actually concentrated in and managed from your country of residence may be treated as a corporate taxpayer there.
International payment providers do not work with Northern Cyprus companies. Card payment collection is possible through the local bank's virtual POS; payments are transferred to the company account in Northern Cyprus.International payment institutions do not work with these companies; card payments are collected through a local virtual POS.
- Northern Cyprus bankAvailable
Corporate account; Turkish lira and foreign currency. Payments from abroad reach it through the correspondent bank in Turkey.
- Virtual POS (Tiko)Available
Card payment collection; payment is transferred to the company account in Northern Cyprus.
- Not supported
Northern Cyprus is not on the country list.
- Not supported
Northern Cyprus is not on the country list.
- Not supported
It could be opened in the past; today it cannot be opened with a Northern Cyprus company.
- Shopify PaymentsNot supported
Northern Cyprus is not among the supported countries.
- AmazonNot supported
Northern Cyprus is not on the seller registration country list.
- EtsyNot supported
Northern Cyprus is not on the seller country list.
The "Cyprus" in these lists refers to South Cyprus; a Northern Cyprus company does not take its place.
Each step states who is responsible; selecting a step pauses the flow.The responsible party is stated at each step.
Determining the company name
2-3 alternative names are determined for the company; name suitability is checked.
With you3 working days on average
Timelines are averages. Decisions by authorities and banks rest with the institutions concerned; neither outcome nor timing is guaranteed.
Tick the documents that are ready for Northern Cyprus; we carry out the process.
On your side
Documents Required from You
The signature is given in Northern Cyprus.
0/4 ready
- Copy of your passport and identity card
- Utility bill or proof of legal address
- Criminal record certificate
- Address lease agreement
For a Free Zone company, the address requirement can also be met through an agreement with an accounting office; in this case a representative who is a Northern Cyprus citizen, determined by the Free Zone, is appointed.
Select the company type; for a Free Zone company the total is calculated item by item, for a local company a quotation is prepared.
Company type
Formation and first year · all items included
- Company formationApplication documents, approval follow-up and registration€4,900
- Free Zone activity feePaid every year by the end of January€2,700
- Registered address and legal representationAnnual service€2,000 + VAT
Accounting · after formation, as you prefer
Select your profile; the assessment is shown below.
If your goods are shipped abroad from the Free Zone Northern Cyprus is a suitable option.
This is the Free Zone's basic function: profit from activity in the Free Zone is exempt from tax and customs duty.
A Free Zone company is formed for activity directed outside Northern Cyprus and within the Free Zone; no corporate or income tax applies to this activity and the company is not a VAT payer. A local company is formed to operate in the Northern Cyprus domestic market; it pays 10% corporate tax and charges VAT on its sales.
For a Free Zone company, it is approximately 30-40 working days once the documents are complete. For a local company, company approval takes 5-7 working days on average; the total timeline depends on the shareholding structure and the permits required and is notified in the first meeting.
Yes, once, for both company types. The documents are signed in Northern Cyprus and the company's capital account is opened at the bank during the same visit. The application, approval and registration processes are then carried out on your behalf.
The capital belongs to your company. An amount equal to the share of the foreign shareholders is blocked at a Northern Cyprus bank at the registration stage; the block is lifted with the company's registration documents and the amount is available in the company account.
No. Northern Cyprus is not on the country list of Stripe or PayPal. Card payment collection is made through the local bank's virtual POS; payments are transferred to the company account in Northern Cyprus.
Forming a company does not by itself provide a right of residence. If you will reside in Northern Cyprus and manage the company, you must obtain a permit to set up a business from the Ministry of Labour and Social Security.
No. Both a Free Zone company and a local company are formed with at least two and at most fifty shareholders.
Dividends are generally declared under the rules of your country of residence, and any exemption depends on those rules. We do not provide personal tax opinions; your situation is assessed in the meeting.
Because the international postal connection of Northern Cyprus is routed through Turkey, addresses carry the wording "Mersin 10, Turkey". Some foreign platforms may treat this address as Turkey; the platforms to be used are assessed together before formation.
Both company types are limited companies registered in Northern Cyprus. The exemption of a Free Zone company is based on the Free Port and Zone Law and is lawful; its condition is genuine activity directed outside Northern Cyprus and records kept regularly. Declaring the income in your country of residence remains your own obligation.
Yes, it is mandatory. Both company types submit their annual accounts and reports every year; for a Free Zone company this obligation continues even if no tax arises.
Through voluntary liquidation. First, all balance sheets and annual reports must have been submitted to the Tax Office and the Registrar; the liquidation decision is announced in the Official Gazette.
Is your question not on the list?You can ask about your own situation in a meeting.
Schedule a Meeting
