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LOAN FOR BUSINESS IN CYPRUS
Business financial support programs in Cyprus
There is not always enough money to start a business in Cyprus. In Cyprus, it is enough to develop small and medium enterprises, the state provides loans for their activities, and thus strengthens its financial system.
Many banks provide favorable conditions for lending, and the procedure for obtaining a loan is not complicated. Therefore, getting a loan for a business in Cyprus is a good option for your business, if you do not currently have the opportunity to provide it in full, but need additional financing.
In which cases can you get a business loan in Cyprus?
There are the following options for getting a loan to start a business:
- The US Small Business Microloan Program, which is favorable because it offers loans of up to $ 50,000 for small businesses that want to start a business or expand one that already exists.
SBA microloans are managed by non-profit lenders of the community, and are generally easier to apply for than larger loans. Disadvantage: financing may not be enough for all borrowers.
The flagship loan program SBA 7 (a) also offers financing that can be used by borrowers to start a business. But SBA 7 (a) loans are harder to obtain. Loans are usually issued to established enterprises that can provide collateral in the form of physical assets, such as real estate or equipment, which the lender may sell in the event of default. Qualifications are rigorous, and even if you meet the requirements, applying for an SBA loan can take several months.
- Take a microloan
- Loans for personal business
New small business owners can also access financing through personal business loans, such as those offered by online lenders. Personal loans are based on your personal credit history, making them a competitive option if your startup is too new to qualify for other business loans.
Consumer loans can have high interest rates (up to 36%), especially for borrowers with a bad credit history. This means that this type of loan for a startup is best suited for borrowers with excellent personal credit and high income.
- Small business grants from private foundations and government agencies are another way to raise start-up funds for your small business. These are not loans that can make it difficult to obtain them. But free capital can cost a lot of work for some new businesses.
- Friends and family
- Credit Cards – Many entrepreneurs rely on business credit cards for startups as financing. You can use this option as short-term financing for business purchases that you can pay off quickly. Allow your balance to linger and interest payments will accrue, quickly turning your credit card into an expensive small business loan.
- Annual interest rates on your business credit card are mainly based on your personal credit ratings. If you have bad personal credit, you will have a higher interest rate.
- Crowdfunding
What documents are required to obtain a business loan in Cyprus?
In this case, a non-resident of Cyprus, so you should submit the following documents:
- A copy of a valid identity card / passport, other identity document, such a copy must be certified by the relevant government agency – as a valid copy
- A document confirming the relevant right to stay in Cyprus (for example, a copy of your temporary residence and stay permit in Cyprus)
If you want to take a loan for a legal entity, you must submit the following documents:
- Financial reports
- Tax returns
- Income and loss statements
- Details of the corporate account
However, depending on the bank in which you will take a loan, as well as depending on the purpose of such lending and whether it will be a traditional bank or online, the documents may differ.
Which banks can I apply for a business loan in Cyprus?
- Chase.
- Live Oak Bank.
- Wells Fargo.
- Capital One.
- Bank of America.
What loans can be provided?
- Term loan
- Loans for equipment
- Long-term real estate loans
Assistance in obtaining a loan for:
- Buying real estate (house, apartment, other buildings) on the secondary market
- Purchase of land for construction
- Purchase of equipment for business
- Investment projects
Often when preparing documents and submitting them to the bank there may be some difficulties, so you need to contact a professional who will help prepare all the documents, prepare applications, select possible grants to receive money and help resolve other issues that may arise when obtaining a loan.
Our services are priced from 200 euros per consultation and subsequent support.
Calculate the cost of services
1 question
Are you currently in Ukraine?
2 question
Are you currently in Cyprus?
3 question
Do you already have a business in Cyprus and want to get a loan?
4 question
Are you planning to register a business in Cyprus?
5 question
You have already chosen a bank in which you will take a loan and in which you need legal and support when getting a loan?
6 question
The amount of the loan you plan to get over 500 thousand euros?
7 question
Do you need a consultation urgently?
The corporate tax rate in Cyprus was raised to 15%. Doesn't this create problems for Ukrainian business?
On the contrary, it is a strategic advantage. The Tax Code of Ukraine provides for exemption from CFC taxation if the effective rate in the foreign jurisdiction is at least 13%. The 15% rate in Cyprus automatically allows legally exempting the profit of a Cyprus company from additional taxation in Ukraine.
How does the updated IP Box regime for IT companies work?
The Cyprus IP Box applies the Modified Nexus Approach, where the benefit depends on actual development costs. If a company develops software locally, 80% of qualifying profit is exempt from taxes. The 15% corporate tax applies only to the remaining 20% of profit, giving an effective tax rate of 3%.
Is it necessary to pay tax on undistributed profit and the annual company levy?
No. The Deemed Dividend Distribution (DDD) rule was completely abolished for profits generated from January 1, 2026. The annual fixed Annual Levy of €350 was also abolished starting in 2024.
Can I get Cyprus tax residency as a business founder?
Yes, the “60-day rule” applies to business founders. It allows you to obtain tax resident status by staying in Cyprus for only 60 days a year if you own or rent housing, have business ties to the country, and are not a tax resident of another state.
What is Notional Interest Deduction (NID) and who is it suitable for?
NID is a powerful incentive for capital-intensive businesses (e.g., industrial or investment holdings). It allows deducting notional interest on the amount of new equity capital introduced from the taxable base. The deduction amount equals the yield of 10-year government bonds of the country of investment plus 5%. This tool can reduce taxable profit by up to 80%.
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