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In Cyprus, the annual fee for companies of 350 euros has been abolished.
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In Cyprus, a parliamentary session was held during which a decision was made to fully abolish the annual tax imposed on all Cypriot companies in the amount of 350 euros.
According to deputies, this decision is justified, as this tax was introduced as part of economic measures that were necessary, and according to government representatives, the term of the relevant memorandum has expired, allowing the abolition of the said levy.
The fee has been a mandatory requirement since 2011 for all companies registered in Cyprus, bringing the state more than 40 million euros in annual revenue.
The chairman of the House of Representatives committee on energy, trade, industry, and tourism reported that the executive branch has pledged to reimburse the amount received from 1,300 companies that have already paid the fee for the year 2024.
Prior to the legislative changes, the tax payment was due by June 30 of the current reporting year. In case of delayed payment of the fee, a strict system of fines is provided, up to and including the exclusion of the company from the State Register.
Cyprus actively promotes its image as a reliable and transparent international financial center.
It is expected that the abolition of the annual levy in Cyprus will reduce the financial burden for companies by reducing operational expenses.
The abolition of this tax also underscores Cyprus’ commitment to flexibility and support for a diverse entrepreneurial community on the island.
Why Companies Register in Cyprus:
Thanks to legal opportunities for managing tax obligations and a wide range of tax incentives, Cyprus creates a favorable environment for business, promoting entrepreneurship and attracting foreign investment.
Corporate tax rate is fixed at 12.5%.
0% tax on profits from the sale of shares and bonds
0% tax on dividend income, interest, and other passive income.
0% tax on the sale of corporate rights
Employer and employee contributions on wages are among the lowest in the EU
Through the special IP BOX regime for companies in the field of intellectual property, it is possible to reduce the corporate tax rate to 2.5% and distribute dividends tax-free.
Having your own company in Cyprus will provide you with the opportunity to conduct business and engage in entrepreneurial activities in a stable jurisdiction with access to the international market. It will also allow you to legitimately minimize taxation, both at the level of your company and on a personal level. Establishing a company in Cyprus opens up broad prospects for the development of your business.
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting....
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting.
