Cyprus Company Annual Costs (2026)

The registered office and the company secretary are the two fixed costs that every Cyprus company must pay, whether it trades or not. A PO box does not qualify as a registered office under Cap. 113 — the Registrar requires a physical address in Cyprus. If the registered office is not genuine, the company cannot receive official correspondence, and statutory notices are deemed served after 14 days regardless. A registered office facility costs €500–€800 per year and is typically provided by the law firm or fiduciary that formed the company.

The company secretary is mandatory under Section 171 of Cap. 113 and cannot be the sole director (Section 171(3)). The secretary maintains the statutory registers, files the annual return (HE32), and ensures compliance with filing deadlines. A corporate secretary service costs €500–€800 per year and is the standard arrangement for foreign-owned companies — it provides continuity (the firm does not resign), professional competence, and registered office facilities in the same package. These two costs together — €1,000–€1,600 per year — are the floor: even a dormant company with zero transactions must pay them.

If the registered office or secretary role lapses, the company is in breach of Cap. 113. The Registrar can impose daily penalties. If the annual return (HE32) is not filed for two consecutive years, the Registrar can strike the company off the register under Section 327 — the company ceases to legally exist, its assets pass to the Crown (bona vacantia), and restoration requires a court order costing €3,000–€8,000 and taking 3–6 months. The registered office and secretary are not optional line items to cut for cost savings — they are the statutory minimum.

Bookkeeping and accounting costs €1,200–€2,400 per year depending on transaction volume. A company with 20–50 transactions per month costs approximately €1,200–€1,500 per year. A company with 100–200 transactions per month costs €1,800–€2,400. Monthly management accounts, bank reconciliations, and VAT return preparation are typically included. The accounting fee covers the corporate tax return (IR4, filed by 31 March), provisional tax calculations (two instalments: 50% by 31 July, 50% by 31 December), and the annual return (HE32) filing with the Registrar.

If you have employees, add payroll processing: €200–€500 per month depending on headcount. The TD7 employer return is filed by 30 September each year, and PAYE is paid monthly. If you are VAT-registered, quarterly returns are due by the 10th of the second month after quarter-end (10 February, 10 May, 10 August, 10 November) — preparation costs €200–€400 per quarter, often bundled into the monthly accounting fee. If you pay dividends, the SDC return is filed by 31 January of the following year.

Provisional tax is based on the estimated annual tax liability. If you underestimate by more than 25%, a 10% under-estimation penalty applies on the shortfall. If you overestimate, you can claim a refund — but the refund process can take 6–12 months. The standard approach is to estimate conservatively based on the prior year\'s actual liability, adjusted for known changes. Your accountant should handle this calculation and remind you of the two instalment deadlines (31 July and 31 December).

For a company with €200,000 turnover, 3–5 employees, and VAT registration, the total annual cost breaks down as: registered office €600, company secretary €600, accounting and bookkeeping €2,000, audit €1,800, payroll processing €1,800 (€150/month x 12). Total: €6,800 per year. For a company with €50,000 turnover (below the audit threshold), no employees, and no VAT registration: registered office €600, company secretary €600, accounting €1,200. Total: €2,400 per year — and no audit is required because turnover is below €120,000.

The 2026 reform raised the mandatory statutory audit threshold from €70,000 to €120,000 of annual turnover. Below €120,000, a compilation report prepared by a registered accountant suffices — not a full audit. A compilation report costs €500–€1,000 per year, compared to €1,500–€3,000 for a full audit. This saves small companies €1,000–€2,000 per year and is one of the most significant cost reductions in the 2026 reform.

The threshold applies to trading companies. Holding companies require an audit regardless of turnover — the Registrar needs assurance that subsidiary valuations and intercompany balances are properly stated. IP Box companies also require an audit regardless of turnover, because the IP Box regime demands documented nexus between R&D expenditure and IP income. A dormant company with no transactions does not need an audit, but it still needs a nil annual return (HE32) and a registered office.

Several competitor pages still state that audit is mandatory for all Cyprus companies regardless of size — that has not been accurate since the 2026 reform raised the threshold. If your accountant or fiduciary tells you that audit is required and your turnover is below €120,000, ask them to cite the specific provision. The reform is law — you are entitled to the lower cost of a compilation report if you qualify.

The €350 annual company levy was separately abolished from 2024. Before that, every Cyprus company paid €350 per year to the Registrar of Companies as an annual levy. Since 2024, this is €0. The annual return (HE32) filing fee remains, but it is small (€20–€50 depending on share capital) and is typically included in accounting packages. If a provider quotes you €350 per year as a "government levy" or "annual company levy" from 2024 onwards, that charge does not exist.