The Cyprus HQ Scheme is delivered through the Business Facilitation Unit (BFU), a one-stop government body established to attract foreign direct investment and international company headquarters to Cyprus. Foreign companies that register through the BFU benefit from a streamlined process for company incorporation, VAT registration, and tax registration, typically completed within a few weeks. The BFU also facilitates the issuance of residence and employment permits for key personnel and their dependants on an accelerated timeline.
Qualifying companies must demonstrate genuine substance in Cyprus, including a registered office, local bank account, and at least one director or senior employee based on the island. In return, they gain access to expedited permit processing, a dedicated government liaison, and priority handling across multiple ministries. This significantly reduces the administrative friction that has historically deterred foreign companies from establishing Cyprus entities.
The HQ Scheme is particularly relevant for technology companies, investment funds, and multinational groups seeking to take advantage of the Cyprus IP Box Regime, the favourable corporate tax rate, and the 50% income tax exemption for senior employees. When combined with Cyprus's network of double tax treaties, the BFU route offers a compelling package for companies looking to establish a tax-efficient EU base.