DFT+U calculations of Cu-doped bulk ceria are presented. The first oxygen vacancy in Cu-doped ceria forms almost spontaneously and the second vacancy is also easily created. Whether zero, one or two oxygen vacancies, the Cu dopant is in the form Cu(+II), and prefers to be 4-coordinated in a close to planar structure. Charge compensation, structural relaxation and available Cu-O states all play a role in lowering the O vacancy formation energies, but to different degrees when the first and second oxygen vacancies are formed. The Cu-doped ceria(111) surface system behaves in a similar fashion.