Reviewing these factors helps to understand both the advantages and the risks of choosing each jurisdiction. Both countries have attracted increasing interest from international investors and entrepreneurs looking to expand globally.

Tax regime

In Cyprus, the corporate tax rate is 12.5%. Cypriot tax residents may be exempt from paying tax on dividends received from non-residents and can benefit from tax reductions on income from intellectual property (IP Box Regime). Basic information about corporate taxes and the latest tax calendar for Cyprus in 2025 can be found at Legarithm legal services.

For tech startups, this means a significant reduction in the overall tax burden. The cost of annual company support starts from €2,000, with initial registration expenses from €1,500. Cyprus company registration made easy, allowing you to start your business with minimal hassle.

In the UAE, companies operating in Free Economic Zones do not pay corporate tax if they:

• work exclusively with other Free Zone companies, or
• engage in activities and meet the criteria listed for the UAE
• qualify for the small business relief for entities with annual revenues up to AED 3,000,000

Since 2023, a 9% corporate tax rate has been introduced for some companies. Additional costs include mandatory annual Free Zone payments, starting at $3,000 per year.

Business registration and team relocation

The registration process in Cyprus takes on average 10–14 days. All documents can be submitted online, with mandatory KYC checks for beneficiaries. There is a Startup Visa programme for founders, allowing them to legally reside and work in Cyprus and to relocate key specialists. This programme significantly simplifies the process for international entrepreneurs.

Setting up a company in the UAE can take two to seven days. No local partner is required to launch a business. The country offers Startup, Green, and Golden Visa programs for founders, investors, and highly skilled professionals. Both jurisdictions have procedures adapted for foreigners.

Infrastructure for technology companies

In Cyprus, office space for startups starts at €300 per month, and fully remote work is possible. Opening a corporate bank account takes one to four weeks, with banks working with all major global payment systems.

In the UAE, coworking space starts from $250–400 per month. The fintech market is rapidly developing, and banks open accounts for IT companies, although compliance procedures may be stricter than in the EU. The tech infrastructure supports big data operations, the launch of data centres, and scaling SaaS solutions. The growing demand for data services in the UAE is driving technological advancements.

Intellectual property protection

Cyprus applies EU legislation in the field of patents, copyrights, and trademarks. Intellectual property can be registered at the EU level or through WIPO. The UAE uses a common law approach, emphasizing national registration of trademarks, patents, and copyrights. The registration procedure usually takes 4–6 months.

Risks and legal specifics

In Cyprus, the main risk is the requirement to prove real economic presence and dependence on the banking system. In the UAE, banks scrutinise non-residents very thoroughly, and the regulatory landscape – especially regarding KYC and AML – is changing rapidly.

Operational risks and limitations

In Cyprus, the risk is reliance on the banking sector and the need to confirm economic substance. In the UAE, the risk is strict bank compliance and quick changes in regulations for non-residents.

Key jurisdiction parameters:

• Corporate tax: Cyprus 12.5%, UAE 9% (or 0% for some companies)
• Registration time: Cyprus 10–14 days, UAE 2–7 days
• Startup costs: Cyprus from €3,500, UAE from $3,500
• Startup programmes: available in both countries
• Market access: Cyprus – EU; UAE – MENA, Asia, Africa