Corporate redomiciliation generally refers to a company
transferring its registration and registered office address from
one country (hence jurisdiction) to another. Redomiciliation
in Cyprus is possible since 2006 and is provided for by sections
354 (Β)-(Θ) of the Cyprus Companies Law, Cap. 113
(‘the Law'). Moreover, it is certainly on an upward
trend over the past few years, and this increase is only partially
explained by Cyprus's favourable corporate tax rate of
12.5%. The question therefore emerges, what is
this sudden increase fuelled by?
Why redomicile in the first place
Ask any lay person to cite one reason why a company should
redomicile and you are bound to get ‘tax' as the most
popular answer. A more favourable tax regime is one of the
principal reasons to change a company's seat of
incorporation, and even if it does not constitute the driving
motivation, tax implications of redomiciling should ALWAYS be
considered. Nonetheless, Cyprus which enjoys a
