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Industry · Marketing Agencies

Cyprus for digital agencies — company, payroll and founder tax planning

International agency work raises company-management, place-of-supply, payroll and founder-residence questions. Cyprus has a 15% standard corporate rate; the 50% salary exemption and dividend SDC relief apply only when their separate conditions are met.

The Cyprus stack

Cyprus rules to review for digital marketing agencies

Cyprus Ltd

Corporate income tax (2026)

15%

Activity review

Income type, VAT and residence conditions

Case-by-case

+ Non-dom founder

Dividend SDC if eligible; GHS may apply

0%

Rates to review

15% standard CIT · IP Box only if eligible

Dividend SDC may be 0% for eligible non-doms; GHS and home-country tax may still apply.

Independent Cyprus advocates + auditors, coordinatedFixed fees, written in advance

15%

Corporate tax on agency profit

50%

Employment-income relief only if eligible

0%

Dividend SDC for eligible non-doms; GHS may apply

Before comparing tax outcomes

The facts that matter for digital marketing agencies

A company rate alone does not determine what a founder keeps. A useful comparison needs the current residence and tax position of the owner, where the work is actually performed, the nature of the income, and the costs of operating and complying in both countries.

  • Agency company set-upCoordinate incorporation and agreed tax/VAT registrations after reviewing management and client locations.
  • Employment-relief eligibilityCheck the individual statutory tests before modelling any 50% employment-income exemption.
  • Founder residence reviewAssess the residence route, non-dom dividend SDC conditions and any GHS or departure-country exposure.
  • Agency contract and privacy scopeMap MSAs, SOWs, IP assignments, privacy notices and data-processing agreements to the actual service flow.

Illustrative savings claims are omitted until the assumptions and source-country rules can be verified for an individual case.

Why Cyprus, specifically

Three Cyprus rules to examine for digital marketing agencies.

Tax

Profit, payroll and owner distributions

A Cyprus tax-resident company pays 15% corporate income tax from 2026. Employee salary relief and a non-dom founder’s dividend SDC position have separate eligibility tests; GHS and foreign tax may remain.

Legal

Client and subcontractor rights

Agency statements of work should address ad spend, platform ownership, creative IP, privacy roles and subcontractor terms. Cross-border clients may require additional local clauses.

Banking & Ops

Payment and advertising accounts

Platform billing, multicurrency banking and KYC depend on the business profile. VAT treatment varies between B2B services and any consumer-facing digital products.

How it works

A practical sequence, with timing set by your case.

1Step 1

Describe your current position

Tell us where you live, where the business is managed, the income streams involved and what you want to change.

2Step 2

Review the legal and tax questions

We identify the relevant Cyprus and departure-country questions, required specialists, documents and any regulatory constraints.

3Step 3

Agree a written scope

Before paid work begins, you receive the proposed services, fixed fees, third-party costs and an indicative sequence of work.

Timing depends on document readiness, authority processing, bank and payment-provider onboarding, and immigration requirements. We set an indicative timeline in the written scope.

What we actually do

A written scope and fee before paid work begins.

One dedicated Zeno point of contact coordinates relevant independent Cyprus Bar advocates and accountants. Before work begins, you receive a written scope and an itemised fixed-fee quote, including any third-party charges.

Agency company set-up

Coordinate incorporation and agreed tax/VAT registrations after reviewing management and client locations.

Employment-relief eligibility

Check the individual statutory tests before modelling any 50% employment-income exemption.

Founder residence review

Assess the residence route, non-dom dividend SDC conditions and any GHS or departure-country exposure.

Agency contract and privacy scope

Map MSAs, SOWs, IP assignments, privacy notices and data-processing agreements to the actual service flow.

Cyprus structuring for digital marketing agencies, done properly.

Tell us about your situation. We will reply to arrange a free consultation, explain which independent specialist would handle your matter, and give you a written scope and fixed-fee quote before any paid work begins.

Keep reading

Deeper guides for digital marketing agencies

Also serving: SaaS Founders · Content Creators

Page last reviewed 23 October 2026. Estimates only — not legal, tax or financial advice.

Primary Cyprus rules behind these examples

The sources describe Cyprus rules, not a guaranteed outcome for your industry or home country. The IP Box requires qualifying assets, income and nexus; securities and forex-trading gains have different tax rules.