Setting up a Cyprus company is only the start. Every year the company has fixed government charges, compliance filings and professional costs. Knowing them in advance helps you budget properly and avoid penalties. Here is what to expect.
Government fees
- Annual levy: currently €350 a year, paid to the Registrar of Companies by 30 June.
- Filing fees for the annual return and for any company changes, such as new directors, share transfers or a new registered office.
- Stamp duty was abolished for documents signed from 1 January 2026, which removes a cost that used to apply to many contracts.
Compliance you must keep up with
- Bookkeeping: proper accounting records for every transaction.
- Audited financial statements: every Cyprus company needs a yearly audit by a licensed auditor, whatever its size.
- Annual return (HE32): filed with the Registrar of Companies together with the audited accounts. See our annual return guide.
- Corporate tax return: filed once a year, with provisional tax paid in two instalments during the year.
- VAT returns, normally every quarter, if the company is VAT registered, plus VIES statements if you supply businesses in other EU countries.
- Payroll filings, social insurance and GeSY (health system) contributions, if the company has employees, including salaried directors.
Tax on profits
From 1 January 2026 Cyprus taxes company profits at 15%. The same reform abolished the old “deemed dividend distribution” rule for profits earned from 2026 onwards, so companies are no longer treated as having paid out part of their profits automatically. When dividends are actually paid to Cyprus-domiciled shareholders, the special defence contribution is now 5%. Shareholders with non-dom status are generally exempt; see our non-dom guide.
Professional services
- A registered office address in Cyprus and handling of official mail. See our registered office service.
- A company secretary, which every Cyprus company must have.
- Accounting and audit fees, which depend mainly on how many transactions the company has.
- Tax and VAT filing, if you do not handle them yourself.
- Bank charges for the corporate account.
What makes costs go up or down
- Number of transactions: a holding company with a few payments a year costs far less to account for and audit than a trading company with hundreds of invoices.
- VAT registration: quarterly returns and EU reporting add regular work.
- Employees: payroll and monthly contributions add a recurring cost.
- Good records: tidy, complete records make the audit faster and cheaper.
Avoid the expensive mistakes
- Missing the annual levy or the annual return deadline brings penalties and, in the end, the risk of the company being struck off.
- Late tax returns and late provisional tax payments attract penalties and interest.
- Leaving the audit until the last minute usually costs more than spreading the work through the year.
Government fees and tax rules are set by law and can change. We check the current figures for your company before every filing.
How CyCorporate helps
We give you one fixed yearly price for the services your company needs, remind you of every deadline and handle the filings for you. See our annual return and company filings service, or ask for a fixed quote below.
Frequently asked questions
What is the annual levy for a Cyprus company?
Every company registered in Cyprus pays an annual levy to the Registrar of Companies, currently €350, due by 30 June each year. Late payment brings surcharges.
Does every Cyprus company need an audit?
Yes. Cyprus companies must prepare financial statements each year and have them audited by a licensed auditor, even if the company is small or did not trade.
What is the corporate tax rate in Cyprus?
From 1 January 2026 the corporate income tax rate is 15% of taxable profit. Tax is normally paid in advance through two provisional tax instalments during the year, with a final settlement once the tax return is filed.
Can CyCorporate give me a fixed annual price?
Yes. Tell us about your company, its activity and roughly how many transactions it has, and we will send a written fixed quote covering the services you need.