Your Cyprus company in years one and two

In year one a Cyprus company pays mostly one-off costs: name approval at €10 per name, the Registrar's incorporation fee of €165 for a company with share capital (€100 more for accelerated registration), a registered office, a bank account and tax registration. Beneficial owners go into the UBO register within 90 days of incorporation. From then on the yearly cycle starts: bookkeeping, annual financial statements, an audit or, for small private companies that qualify, a statutory review, and the annual return (HE32) within 28 days of its annual return date, the first one 18 months after incorporation. Corporate tax is 15% of taxable profit from 2026, with provisional tax in two instalments in July and December and the return due by 31 January of the second year after the tax year. The old €350 annual company fee was abolished from 2024.

1. Name and incorporation. Approve the name (€10 per name), then a lawyer files forms HE1 to HE3 with the memorandum and articles. The Registrar's fee is €165 with share capital or €235 without, plus €100 for accelerated registration.
2. Registered office and secretary. Every company has a registered address in Cyprus and a secretary.
3. Beneficial owners. Enter the people who own or control more than 25% in the UBO register within 90 days of incorporation.
4. Tax number. Register the company with the Tax Department on the Tax For All (TFA) portal.
5. VAT, if it applies. Registration is required when taxable supplies exceed €15,600 in 12 months, or are expected to within the next 30 days, and without any threshold for intra-EU supplies of goods and services. Check with the VAT registration checker.
6. Employer registration. Before you hire anyone, register the company in the Register of Employers of Social Insurance Services.
7. Bank account. Prepare the bank file early; see opening a bank account for your company.
8. Bookkeeping from the first transaction, so the first accounts can be audited or reviewed without rework.

• Accounting and annual financial statements under IFRS and the Companies Law.
• Statutory audit by an independent auditor, or a statutory review if the company qualifies as small: turnover up to €300,000 and balance sheet total up to €500,000 for at least two years in a row. Groups and companies supervised by the Central Bank, CySEC or the Superintendent of Insurance cannot use the review.
• Annual return (HE32) within 28 days of the annual return date, filed electronically with the financial statements; the fee is €20. Late filing brings a penalty of up to €150.
• Corporate tax return on the audited or reviewed accounts. For tax years from 2026 it is due by 31 January of the second year after the tax year: the 2026 return by 31 January 2028.
• Provisional tax: an estimate of the year's tax, paid in two equal instalments by 31 July and 31 December.
• Registered office and company secretary, renewed yearly with your provider.
• UBO confirmation every year between 1 October and 31 December, and changes within 45 days. Late filing costs €100 plus €50 a day, up to €5,000.

The second year is when most filings arrive for the first time:

• The first annual return falls due 18 months after incorporation, then every year on the same date.
• The first financial statements are audited or reviewed, and the first corporate tax return is prepared on them.
• Provisional tax now has a real profit to estimate from. Underestimating it can bring extra tax later.
• If the company is VAT registered, quarterly VAT returns become routine, and a VIES return for intra-EU supplies is due by day 15 of the following month.
• If you employ staff, monthly PAYE and social insurance payments run, with the employer's annual return the following year.

A company has a taxable profit of €100,000 in 2026. Its owner is a Cyprus tax resident who is not domiciled in Cyprus (non-dom). The figures match the dividend tax calculator.

• Corporate tax: 15% × €100,000 = €15,000, paid as provisional tax of €7,500 by 31 July and €7,500 by 31 December if the estimate is right.
• Profit left to distribute: €100,000 − €15,000 = €85,000.
• Special Defence Contribution on the dividend: none for a non-dom who has claimed the exemption.
• GESY on the dividend: 2.65% × €85,000 = €2,252.50.
• Left for the owner: €85,000 − €2,252.50 = €82,747.50.

If the owner is Cyprus domiciled, Special Defence Contribution of 5% applies to dividends from 2026 profits: €4,250 more, leaving €78,497.50. Dividends paid out of profits of 2025 or earlier carry 17%. This example ignores deductions, losses and costs of running the company.

Compare the same profile with every provider: number of transactions a year, number of staff, VAT and the countries you trade with. Otherwise a cheap first-year price can hide a costly second year.

• Ask for the year-two price in writing: accounting, audit or review, annual return, tax return, provisional tax, registered office and secretary.
• Ask whether VAT returns, VIES returns and payroll are included or charged per filing.
• Ask who prepares the accounts and who audits them. They should be different firms.
• Keep government fees separate from service fees, so you can compare like with like.