The reasons more Indian Businesses Are Choosing Cyprus as Their Gateway in 2026
By Stella Koukounis
Fresh back from the Presidential and business delegation visit to Mumbai, India, and having the benefit of meeting up with business people, lawyers, accountants and entrepreneurs in Mumbai, who are looking into Cyprus and what it offers, I’ve noticed the following: a common misconception amongst businesses expanding into Europe is that success depends primarily on choosing the right market.
In reality, the corporate structure through which a business enters Europe often proves just as important as the market itself.
Over the past decade, many international groups approached Europe on a country-by-country basis. But this approach is changing. And this was evident from our business trip to India. Increasingly, businesses are looking for a platform capable of supporting acquisitions, fundraising, intellectual property ownership, regional headquarters functions and long-term growth across multiple jurisdictions.
This is one of the reasons Cyprus continues to attract attention from Indian entrepreneurs, family offices and corporate groups. Cyprus combines EU membership, a common law legal system familiar to many international investors, an extensive treaty network and one of the most competitive corporate tax environments within the European Union. However, the real advantage is not the jurisdiction itself. It is the flexibility the structure creates.
A corporate structure established today will often determine how efficiently future acquisitions can be completed, how easily external investment can be attracted and how effectively a business can scale across Europe.
As economic ties between Cyprus and India continue to deepen, more businesses are recognising that European expansion is not simply a commercial decision.
Expanding into Europe is not only a commercial decision—it is also a legal and tax structuring decision. Cyprus offers Indian investors a strategic gateway to Europe, combining full EU market access with a competitive 15% corporate tax rate, an extensive double tax treaty network, a robust holding company regime, no withholding tax on outbound dividends and exemptions on gains from the disposal of qualifying shares. Businesses can also benefit from the Cyprus IP Box Regime, which can reduce the effective tax rate on qualifying intellectual property income to as low as 3%, making Cyprus an attractive jurisdiction for technology, software and innovation-driven companies. Combined with its English common law legal system, highly skilled professional services sector and strategic location connecting Europe, the Middle East, Africa and Asia, Cyprus provides the legal certainty, tax efficiency and operational flexibility required for international expansion and cross-border investment.
Stella Koukounis is the Managing Partner of Solsidus Law based in Nicosia, Cyprus.
