How to Start Exporting Goods from Cyprus: Rules and Resources

Cyprus, located at the crossroads of Europe, Asia, and Africa, is an ideal hub for international trade and exporting goods. The country’s strategic location, favorable trade agreements, and well-established infrastructure make it an attractive destination for businesses looking to expand their reach. With its membership in the European Union (EU), Cyprus offers businesses access to the single market, which includes over 500 million consumers. If you’re considering starting an export business from Cyprus in 2025, there are several important rules, regulations, and resources to keep in mind.

In this article, we will provide a comprehensive guide on how to start exporting goods from Cyprus, including the legal steps, customs procedures, and available resources for entrepreneurs.

Why Cyprus Is an Ideal Export Hub

Cyprus offers several advantages for businesses looking to export goods:

Strategic Location: Cyprus’s geographical position at the junction of three continents – Europe, Asia, and Africa – makes it a prime location for trade. The country’s ports, particularly in Limassol and Larnaca, serve as important transshipment hubs, facilitating easy access to regional and global markets.
EU Membership: As a member of the European Union, Cyprus offers businesses tariff-free access to EU markets. This is especially valuable for companies exporting to European countries, as they benefit from streamlined regulations and easier market entry.
Favorable Tax System: Cyprus has one of the lowest corporate tax rates in the EU at 12.5%, and offers various tax incentives, including exemptions on dividends and capital gains, which are highly beneficial for businesses involved in international trade.
Advanced Infrastructure: Cyprus boasts modern ports, excellent air transport links, and robust telecommunications, which help facilitate smooth export operations.
Skilled Workforce: The island has a highly educated, multilingual workforce, making it easier for businesses to find skilled employees to support their export operations.

Step-by-Step Guide to Exporting Goods from Cyprus

1. Understand the Export Requirements

Before you start exporting goods from Cyprus, it’s important to understand the basic requirements and regulations surrounding international trade. The key steps include:

Product Classification: Ensure that your products comply with international standards, including those set by the EU. This may involve certifications, quality control processes, or compliance with product safety and environmental standards.
Customs and Tariffs: While Cyprus benefits from being in the EU, businesses exporting outside the EU will need to be aware of any tariffs, duties, or taxes that may apply to their products. Exporters should familiarize themselves with the Customs Union regulations of the EU and ensure compliance with any third-party country regulations.
Export Licenses: Depending on the type of product, certain goods may require an export license. Goods that are subject to international agreements or trade restrictions, such as defense articles, pharmaceuticals, or controlled substances, may require additional licensing or documentation.
Incoterms: Before exporting, it’s crucial to decide on the Incoterms (International Commercial Terms) that will govern the trade relationship between the buyer and seller. Incoterms define the responsibilities of each party in relation to the delivery of goods, including who bears the costs for transportation, insurance, and customs duties.

2. Register Your Business for Exporting

If you haven’t already, you’ll need to register your business with the appropriate authorities in Cyprus. This process typically involves the following steps:

Company Formation in Cyprus: To engage in exports, you’ll first need to establish your business by registering a company. A private limited company (Ltd.) is the most common structure for export businesses, as it provides liability protection and flexibility. B2B Hub can assist with company formation in Cyprus, providing support throughout the registration process.
VAT Registration: As an exporter, you will likely need to register for VAT (Value Added Tax) with the Cyprus Tax Department, especially if your annual turnover exceeds €15,600. Cyprus offers a zero-rate VAT on exports of goods to non-EU countries, making it an attractive tax regime for export businesses.
Customs Registration: You must register with the Cyprus Customs Department to engage in export activities. Customs registration is necessary for compliance with the EU’s customs procedures and to ensure that your products are legally exported.

3. Prepare Your Goods for Export

Once your business is registered, you’ll need to prepare your goods for export. This step involves several tasks:

Packaging: Goods must be packaged to meet international standards, especially if they are being shipped to countries with strict regulations on packaging. Make sure the packaging protects the product during transit and complies with safety standards.
Labelling: International labeling requirements vary from country to country. Ensure that your goods are properly labeled with essential information such as product name, country of origin, and any relevant certifications. In Cyprus, the Cyprus Standards Organization (CYS) oversees the implementation of product standards, so it’s important to comply with these regulations.
Documentation: When exporting goods, you will need to prepare several documents, including:
Commercial Invoice: A detailed bill showing the transaction between you and the buyer.
- Packing List: A list of the items being shipped.
- Bill of Lading: A document that serves as proof of shipment and title to the goods.
- Certificate of Origin: This confirms where the goods were produced and is often required by customs authorities.
- Export Declaration: In some cases, an export declaration will be necessary for customs clearance.

4. Choose the Right Shipping Method

Cyprus has modern ports and airports that facilitate smooth transportation of goods. When deciding on the best shipping method for your business, consider the following options:

Sea Freight: Cyprus has several well-connected ports, with Limassol Port being the largest and most important. Sea freight is ideal for bulkier shipments or when cost-efficiency is a priority. Cyprus also benefits from its proximity to key shipping routes between Europe, the Middle East, and Africa.
Air Freight: If speed is essential, air freight might be a more suitable option. Cyprus’s Larnaca International Airport offers direct connections to major international airports, which can help expedite shipments to global markets.
Road and Rail Transport: Cyprus also offers road transport connections to the rest of Europe via its EU membership. Although the island lacks rail infrastructure, trucking services can connect Cyprus to mainland Europe for overland shipments.

When choosing a shipping method, it’s important to consider factors such as delivery time, cost, and the type of goods you’re exporting.

5. Comply with Export Documentation and Customs Procedures

Once your goods are ready to be shipped, you will need to clear them through customs. Cyprus is part of the EU Customs Union, which means that businesses exporting goods to non-EU countries must follow EU customs procedures. This includes:

Customs Declarations: For exports to non-EU countries, you’ll need to file a customs declaration, which provides detailed information about the goods, their value, and their origin.
Export Duties and Taxes: While exports to the EU are generally free from duties, exports to non-EU countries may be subject to import taxes or tariffs depending on the destination country.
Customs Inspections: Customs authorities in Cyprus may inspect shipments to ensure compliance with regulations. It’s essential to have all necessary documentation prepared and accurate to avoid delays in customs clearance.

Resources for Exporters in Cyprus

Several resources are available to support new exporters in Cyprus:

Cyprus Chamber of Commerce and Industry (CCCI): The CCCI provides various resources, advice, and services to businesses involved in international trade. They can help with market research, export strategies, and connections to potential buyers.
Cyprus Customs and Excise Department: The Cyprus Customs and Excise Department oversees customs regulations, provides information on duties and taxes, and ensures compliance with EU and international trade rules.
B2B Hub: If you’re considering starting an export business in Cyprus, B2B Hub offers comprehensive company formation services, including assistance with VAT registration, customs compliance, and export documentation. Our team of experts can help you navigate the complexities of exporting goods from Cyprus and ensure that your business operates in full compliance with all regulations.

For inquiries or assistance with starting your export business in Cyprus, please contact us at +44 770 018 3107, visit our website at b2bhub.ltd, or email us at reg@b2bhub.ltd.

Starting an export business in Cyprus offers significant opportunities thanks to its strategic location, favorable tax environment, and robust infrastructure. By following the necessary steps for registration, complying with customs and export regulations, and leveraging available resources, your business can successfully tap into global markets and expand its reach.