Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Central Bank of Cyprus decision, including banking and payment rails.
Get an EMI license in Cyprus.
An EU licence at the crossroads of Europe and the Middle East: the Central Bank of Cyprus authorises e-money institutions under the Electronic Money Law, and the 2026 tax reform pairs 15% corporate tax with the EU's best founder-level economics.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Cyprus in brief
The EU's eastern gateway - with founder economics.
Cyprus authorises e-money institutions through the Central Bank of Cyprus under the Electronic Money Law of 2012 (81(I)/2012, as amended in 2018) - the faithful transposition of the EU's EMD2. The numbers are the harmonised ones: €350,000 initial capital, ongoing own funds of at least 2% of average outstanding e-money, safeguarding of client funds and a three-month statutory decision clock from a complete application. Payment-institution licences at €20,000-€125,000 run in parallel under the payment-services framework, and the CBC even publishes dedicated guidance on dual licensing for crypto-asset service providers whose models cross into payments - a desk that understands hybrid fintech.
The 2026 tax reform, gazetted on 31 December 2025, reset the economics: corporate tax moved to 15%, dividend defence contribution fell to 5%, and non-domiciled founders pay 0% on dividends for seventeen years. Add an EU/EEA passport, an English-speaking professional infrastructure inherited from common law, and a genuinely strategic position between European, Middle Eastern and Israeli flows, and Cyprus is the founder-economics play among EU payment desks. Realistic end-to-end timelines run 9-15 months; we manage the file from our Nicosia office.
CBC authorisation under the Electronic Money Law: €350,000 capital, 2% own funds, 3-month statutory clock, EU passport.
The 2026 reform: 15% corporate tax, 5% SDC, and 0% dividends for non-dom founders, seventeen years. The founder-economics play.
The two routes
Full EMI - or the payment-institution tier.
One supervisor, two entries: the e-money institution at €350,000 with the full services list, or payment-institution licences from €20,000. We fix the scope first, then build once.
Full EMI at €350,000 - or PI tiers from €20,000, with CASP dual-licensing guidance.
01 - E-MONEY INSTITUTION
EMI licence
The flagship CBC authorisation: e-money issuance plus the payment-services list, €350,000 initial capital, 2% own funds on outstanding e-money and EU/EEA passporting from the Union's eastern edge.
The flagship CBC authorisation: e-money issuance plus the payment-services list, €350,000 initial capital, 2% own funds on outstanding e-money and EU/EEA passporting from the Union's eastern edge.
- ✓E-money issuance and distribution
- ✓Full PSD2 payment-services list
- ✓€350,000 initial capital · 2% own funds
- ✓Safeguarding of client funds
- ✓EU/EEA passport on notification
- ✓3-month statutory clock from complete
02 - PAYMENT INSTITUTION · HYBRID ROUTES
CASP dual-licensing deskPI and hybrid routes
Payment-institution licences run €20,000-€125,000 by service, and for crypto businesses whose flows cross into payments, the CBC publishes dedicated dual-licensing guidance. We build hybrid files as one project.
PI licences €20k-€125k; CASP/PSD2 dual-licensing desk; upgrade path to the EMI.
- ✓PI licences - €20k / €50k / €125k by service
- ✓Money remittance, transfers, acquiring
- ✓Account information services
- ✓CASP + PSD2 dual-licensing guidance
- ✓Upgrade path to the EMI
- ✓Same CBC supervision
Costs and timelines are confirmed for your case before any work begins. CBC fees follow its published schedule; capital, safeguarding and substance costs are itemised in your quote.
Why Cyprus
Founder economics on an EU passport.
The framework is EMD2/PSD2 under the central bank. With a tax and location profile no other EU desk matches.
✓
15% corporate tax
The 2026 reform set corporate tax at 15%. OECD-minimum aligned, still among the EU's lowest, and paired with an IP-box that can bring qualifying income to ~3% effective.2026 reform; among the EU's lowest.
✓
Non-dom: 0% on dividends
Non-domiciled founders pay no defence contribution on dividends for seventeen years. The sharpest founder-level outcome available on an EU payments licence.Seventeen years, founder level.
✓
The eastern gateway
Cyprus sits on the flows between Europe, the Gulf and Israel. An EU passport where those corridors actually meet, with the time zone to serve all three.EU + Gulf + Israel corridors.
✓
A hybrid-literate supervisor
The CBC publishes dual-licensing guidance for CASPs under PSD2. Crypto-adjacent payment models get a desk that has already thought about them, not a first-impression review.CASP dual-licensing guidance published.
✓
English-speaking infrastructure
Common-law heritage, English-language professional services and a deep banking-and-compliance talent pool. The operational layer runs in English.Common-law professional depth.
✓
EU passport
One CBC authorisation notifies into every EU/EEA state. The full single market from the Union's south-eastern corner.Single market on notification.
How it compares
How Cyprus differs from other routes.
Cyprus trades queue speed for founder economics and geography. The comparison is below.
Cyprus vs other jurisdictions
| Feature |  Cyprus | Other jurisdictions |
|---|---|---|
| Regulatory regime | EM Law 81(I)/2012 - CBC | Same directives, other desks |
| Corporate tax | 15% · non-dom 0% dividends | 12.5-33%, no non-dom |
| Geography | EU + Gulf + Israel corridors | Single-region focus |
| Timeline | 9-15 months realistic | 6-12 at the fastest desks |
Regulatory regime
CyprusEM Law 81(I)/2012 - CBC
Other jurisdictionsSame directives, other desks
Corporate tax
Cyprus15% · non-dom 0% dividends
Other jurisdictions12.5-33%, no non-dom
Geography
CyprusEU + Gulf + Israel corridors
Other jurisdictionsSingle-region focus
Timeline
Cyprus9-15 months realistic
Other jurisdictions6-12 at the fastest desks
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Cyprus | EMI (CBC) | 15% CIT (2026) | Non-dom founder economics |
 Lithuania | EMI (Bank of Lithuania) | 17% CIT (2026) | CENTROlink, specialised desk |
 Malta | EMI (MFSA) | ~5% effective | English file, refund structure |
 Ireland | EMI (CBI) | 12.5% CIT trading | Engagement-led, 12+ months |
CyprusLicense typeEMI (CBC)
Taxation15% CIT (2026)
RequirementsNon-dom founder economics
LithuaniaLicense typeEMI (Bank of Lithuania)
Taxation17% CIT (2026)
RequirementsCENTROlink, specialised desk
MaltaLicense typeEMI (MFSA)
Taxation~5% effective
RequirementsEnglish file, refund structure
IrelandLicense typeEMI (CBI)
Taxation12.5% CIT trading
RequirementsEngagement-led, 12+ months
Before you apply
Requirements for the CBC authorisation.Requirements for the authorisation.
The Electronic Money Law sets the file's contents. The craft is completeness the central bank can verify. The checklist below is what a passing application contains.
01
Cypriot entity. A limited company with its head office and effective management in Cyprus.
02
Initial capital - €350,000 for the EMI, evidenced and paid in; €20,000-€125,000 for PI tiers.
03
Fit and proper management and holders. Competence, clean records and ownership transparent to UBOs.
04
Programme of operations. Services, volumes, three-year financials and unit economics the CBC can interrogate.
05
Own funds. At least 2% of average outstanding e-money, modelled forward with the growth plan.
06
Safeguarding. Segregated client-fund accounts or insurance, with documented reconciliation.
07
AML/CFT framework. KYC, monitoring and MOKAS reporting with a resident compliance officer.
08
IT and security documentation. Architecture, DORA-grade resilience and incident procedures.
09
Internal governance. Control functions, outsourcing register and conflicts procedures.
10
Local substance. Directors, staff and operational reality in Cyprus that survives supervision.
01
Cypriot company, managed locally.
02
€350,000 capital (EMI).
03
Fit & proper holders to UBOs.
04
Interrogable programme of operations.
05
Own funds 2% of outstanding.
06
Safeguarding with reconciliation.
07
AML with resident officer (MOKAS).
08
DORA-grade IT documentation.
09
Governance and outsourcing register.
10
Real substance in Cyprus.
Reflects the Electronic Money Laws of 2012-2018 and CBC supervisory practice as of 2026.Electronic Money Laws 2012-2018 + CBC practice, as of 2026.
How it works
From first call to the CBC authorisation.
01
Route and strategy
EMI, PI tier or a hybrid CASP-plus-payments plan. We fix the scope, capital and timeline in writing.EMI, PI or hybrid - in writing.
02
Cypriot company and people
Company formation, capital evidence and the resident officers the central bank vets.Formation, capital, resident officers.
03
The application file
Programme, safeguarding, AML and IT documentation per the Electronic Money Law. Complete before filing, because completeness is the timeline.Complete before filing. That is the timeline.
04
CBC review
Three months statutory from complete, question rounds answered - 9-15 months realistic end to end.3 months statutory; 9-15 realistic.
05
Authorisation and launch
The licence, passport notifications, safeguarding accounts live, and the non-dom structure running from year one.Passports, accounts, non-dom running.
Quick facts
RegulatorCentral Bank of Cyprus
EMI capital€350,000
Own funds2% of outstanding e-money
PI tiers€20k / €50k / €125k
Statutory review3 months from complete
Realistic timeline9-15 months
Corporate tax15% · from 2026
PassportEU/EEA on notification
The CBC is a central bank, not a licensing shop. The file must read like one an institution wrote. That is our job.
On the ground in Cyprus
Run from our Nicosia office.
Prifinance - Cyprus
Nicosia · Cyprus
Nicosia, Cyprus
01
Cypriot company formation
Limited company incorporation, capital placement and the holding structure that captures the non-dom outcome. Built for the licence from day one.Non-dom structure, built first.
02
The CBC file
Programme of operations, safeguarding design, AML pack and IT documentation per the Electronic Money Law. Drafted by us and defended through the central bank's rounds.Per the EM Law. Defended in rounds.
03
Hybrid and dual-licensing strategy
For crypto-adjacent models, the CASP/PSD2 boundary mapped and both files sequenced as one project. The CBC's own guidance made operational.CASP + EMI as one project.
04
Substance and staffing
Resident directors, compliance officer and MLRO from Cyprus's English-speaking talent pool. Real substance in Nicosia or Limassol.Nicosia or Limassol, real ops.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Good to know
Taxation of payment companies in Cyprus.
The 2026 reform, gazetted on 31 December 2025, reset the system: 15% corporate tax, 5% defence contribution on dividends, and 0% for non-dom founders, for seventeen years.
Corporate tax 15%
From 1 January 2026. OECD-minimum aligned, still among the EU's lowest headline rates, applying to an EMI's fee and float income under ordinary rules.Since 1 Jan 2026 - reform gazetted.
Non-dom: 0% dividends
Non-domiciled tax residents pay no special defence contribution on dividends for seventeen years. The founder-level outcome that separates Cyprus from every other EU desk.Dividends free for 17 years.
Dividends (SDC) 5%
For domiciled residents the defence contribution on dividends fell to 5% under the reform. With transition rules for pre-2026 profits we model case by case.Domiciled residents; transition modelled.
VAT-exempt payment services
Payment and e-money services are VAT-exempt financial services; the 19% standard rate touches only ordinary supplies.19% only on ordinary supplies.
IP box ~3%
Qualifying IP income can reach ~3% effective under the nexus-compliant IP box. Relevant for platform companies holding their own technology.For platform-owned technology.
Treaty network 65+
A deep treaty network across Europe, the Gulf and the CIS. Group structures above the Cypriot entity model cleanly.Europe, Gulf, CIS.
Tax summary
Corporate tax15% · since 1 Jan 2026
Dividends (SDC)5% · 0% non-dom
Non-dom status17 years
VAT on payment servicesExempt
Standard VAT19%
IP box~3% effective
Tax treaties65+
*Figures as of 2026, per the reform gazetted 31 December 2025. Dividends from pre-2026 profits can stay at the old rate if distributed by 2031. We model the transition case by case.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Cypriot company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, authorised institution.
Follow Prifinance
Active across our channels.
Cyprus · Central Bank of Cyprus
Launch your payment project in Cyprus with expert support.
Full-service assistance - from company registration to the CBC authorisation, non-dom structuring and ongoing compliance.
Get a consultation →Free legal opinion
Is Cyprus the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Cypriot EMI licence - the questions we hear.
What licence does an e-money business need in Cyprus?+
An e-money institution authorisation from the Central Bank of Cyprus under the Electronic Money Law 81(I)/2012 (as amended) - €350,000 initial capital, 2% own funds on outstanding e-money and EU/EEA passporting. PI licences at €20,000-€125,000 sit alongside.
How long does licensing take?+
Three months statutory from a complete application - with completeness the real variable. Realistic end-to-end: 9-15 months depending on model complexity. Completeness is our job.
What does it cost?+
CBC fees follow its published schedule; the real investment is capital (€350,000 EMI), substance and the file. Everything is itemised in your quote before we start.
How does the 2026 tax reform change the maths?+
Corporate tax moved to 15% and dividend defence contribution to 5% from 1 January 2026 - while non-dom founders keep 0% on dividends for seventeen years. Cyprus now pairs an OECD-aligned corporate rate with the EU's best founder-level outcome.
What is the non-dom regime worth in practice?+
A founder who relocates tax residence to Cyprus without Cypriot domicile pays no defence contribution on dividends for seventeen years - on an EMI paying out profits, that is routinely the largest single number in the model.
What substance is expected?+
A Cypriot company effectively managed locally, resident directors and compliance officer, real safeguarding arrangements and DORA-grade systems documentation - the central bank reviews like the institution it is.
Does the licence passport across the EU?+
Yes - the CBC authorisation notifies into every EU/EEA state, while Cyprus's position adds working corridors into the Gulf and Israel that pure northern-EU desks lack.
Can a crypto business hold this licence too?+
Yes - the CBC publishes dedicated guidance on dual licensing of crypto-asset service providers under PSD2. Where stablecoin or exchange flows cross into payments, we sequence the CASP and EMI files as one project.
What changes under PSD3?+
PSD3 and the PSR - provisionally agreed in November 2025 and close to formal adoption - fold e-money institutions into a unified payment-institution regime. Files we build now are structured to convert.
Why Cyprus rather than Malta or Lithuania?+
Lithuania wins on speed and CENTROlink; Malta on corporate-level effective rate. Cyprus wins where the founders themselves relocate - 15% corporate plus 0% non-dom dividends beats both at the personal level, with the eastern corridors as the strategic bonus.
What licence is needed?+
CBC EMI - €350k; PI €20k-€125k.
How long?+
3 months statutory; 9-15 realistic.
Cost?+
CBC schedule; capital is the investment.
The 2026 reform?+
15% CIT; SDC 5%; non-dom 0%.
Non-dom worth it?+
0% dividends, 17 years. Usually decisive.
Substance?+
Resident officers, real local ops.
Passport?+
EU/EEA on notification.
Crypto too?+
CASP dual-licensing - one project.
PSD3?+
Agreed Nov 2025 - files convert.
Vs Malta?+
Corporate rate there; founder level here.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
Start today
One message away from your Cypriot EMI.
Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Cypriot route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Central Bank of Cyprus or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.