Cyprus Accounting Services

Financial reports & Tax Filing at your fingertips

House of Companies is excited to offer clients in Cyprus cutting-edge accounting and bookkeeping services, ensuring that all financial requirements are met efficiently and effectively.

Our team of experts utilizes the latest tools and technologies to deliver customized solutions that meet your unique business needs, whether you are operating within the EU or from outside. With advanced, next-level support, you can be confident that your accounting and financial filing are in the best possible hands.

Automate your OSS VAT filings for e-commerce and imports.

Automate financial year-end and statement preparation in Cyprus

Simplify VAT filing for EU and
non-EU clients in
Cyprus

Expand and manage your business in Cyprus effortlessly

Our services include processing invoices, bank statements, and agreements such as leases, all through a centralized platform that simplifies data submission. You can track the progress of your financial operations and profits in real time, providing transparency and ease of management.

Overview of Cyprus Accounting Regulations

Cyprus has a robust regulatory framework governing financial reporting, grounded in both local and European Union directives. The main body of financial law is governed by the Cyprus Companies Law (Cap. 113) and harmonized with the EU’s Accounting Directive 2013/34/EU. Additionally, Cyprus follows International Financial Reporting Standards (IFRS) as adopted by the EU for accounting purposes.

Entities operating in Cyprus must submit annual financial statements and comply with statutory tax filings. Companies are required to file their financial reports within nine months of the end of the financial year, ensuring that their reporting aligns with both local laws and EU directives.

Difference Between a Cyprus Company with Substance (Permanent Establishment) and Without Substance (Non-Resident) for Corporate Tax and VAT

For corporate tax purposes, a Cyprus company with substance, also known as a permanent establishment (PE), is subject to Cyprus corporate income tax (CIT) on its worldwide income. Conversely, a non-resident company without a permanent establishment in Cyprus is liable only for Cyprus-source income, such as profits from a PE or income generated from Cyprus-based property.

A permanent establishment is defined by Cyprus tax law, and it aligns with the OECD Model Tax Convention and relevant tax treaties. This distinction plays a key role in determining both corporate tax and VAT obligations.

VAT

A Cyprus company with substance must register for VAT and charge VAT on taxable goods and services. A non-resident company without a PE in Cyprus may still be required to register for VAT if it makes taxable supplies in Cyprus, such as distance sales or e-services to non-VAT registered customers.

The presence of a permanent establishment in Cyprus is critical for determining corporate tax and VAT obligations for both EU and non-EU businesses.

Legal Entity Types for Non-Residents

Non-resident entities looking to establish a presence in Cyprus have several legal entity options to choose from, each carrying its own accounting and tax obligations. The main types of entities available are:

1. Branch Office (Permanent Establishment)
A branch office is not a separate legal entity; it is simply an extension of the foreign company. A branch must be registered with the Cyprus Registrar of Companies, and the foreign company’s financial statements must be submitted along with any required reports.

Branch offices are subject to Cyprus corporate income tax (CIT) on profits generated within Cyprus and are required to file quarterly VAT returns. Additionally, if the branch has employees, it must set up a Cyprus payroll system, withholding the necessary wage taxes and social security premiums.

2. Subsidiary
A subsidiary is an independent legal entity incorporated under Cyprus law. Subsidiaries must register with the Cyprus Registrar of Companies, file annual financial statements, and comply with Cyprus’s tax obligations, including corporate income tax, VAT, and wage tax. Subsidiaries offer more operational independence compared to branch offices, along with greater administrative simplicity.

3. Foreign Legal Structures
Foreign companies can also use their own legal structure when setting up a business in Cyprus. Cyprus recognizes a wide range of foreign business structures, excluding sole proprietorships. However, using a foreign legal structure may result in complexities due to the need to navigate multiple tax authorities.

Non-resident businesses should consult with legal and tax advisors to determine the most appropriate entity structure for their needs in Cyprus.

Accounting Consequences of Registering a Branch Office in Cyprus

Setting up a branch office in Cyprus comes with several accounting obligations. The foreign company’s financial statements must be filed, and the branch office must maintain accurate books and records. If the branch employs staff, it is required to establish a Cyprus payroll system, withholding and remitting the necessary wage taxes and social security contributions.

The branch office's profits are subject to Cyprus corporate income tax and must file quarterly VAT returns. Transfer pricing rules apply to transactions between the branch and the foreign head office, requiring documentation to justify the allocation of profits.

Choosing between a branch office, subsidiary, or a foreign legal structure depends on the nature of your activities in Cyprus, as well as the administrative, tax, and legal considerations specific to your situation.

Non-resident entities should seek expert guidance to ensure compliance with Cyprus’s legal and tax requirements when establishing a business presence.

Tax Registration Requirements in Cyprus

Non-resident entities conducting business in Cyprus must comply with various tax registration requirements to adhere to Cypriot regulations. These obligations generally include registering for value-added tax (VAT), payroll taxes, and corporate income tax, depending on the nature and scale of the business activities carried out in Cyprus.

VAT for businesses with VAT taxable transactions

Businesses engaged in VAT taxable transactions in Cyprus are required to obtain a Cypriot VAT number. This applies to both resident and non-resident companies supplying goods or services within the country.

The registration process involves submitting an application to the Tax Department of Cyprus, providing necessary documentation such as proof of business incorporation, identification documents, and appointing a fiscal representative if the business is a non-resident entity.

Once registered, companies must charge VAT on taxable supplies, file periodic VAT returns, and maintain detailed records of all transactions. Cyprus follows the EU VAT Directive, and the standard VAT rate in Cyprus is 19%, with reduced rates of 5% and 9% applicable to specific goods and services. Non-compliance with VAT obligations can result in penalties and legal consequences, emphasizing the importance of timely registration and accurate reporting.

Register as Employer When You Payroll Staff in Cyprus

Businesses employing staff in Cyprus are required to register as an employer with the Cyprus Tax Department and deduct payroll taxes from their employees' wages. Payroll taxes include income tax, social insurance contributions, and employee insurance premiums. Employers are responsible for filing payroll tax returns and remitting the withheld amounts to the tax authorities.

Before hiring employees, companies must register as an employer and obtain a payroll tax number. Employers must also verify the eligibility of their employees to work in Cyprus. Failure to comply with payroll tax obligations can lead to penalties and legal consequences, which may include audits by the Cyprus Tax Department.

Corporate Tax Liability for Resident Companies in Cyprus

Resident companies in Cyprus are liable for corporate income tax on their worldwide income. The standard corporate income tax rate in Cyprus is 12.5%, one of the lowest in the European Union. Non-resident companies are subject to corporate tax only on income generated from sources within Cyprus, such as profits from a permanent establishment (PE) in the country.

Non-resident entities are required to file an annual corporate income tax return and pay taxes on the taxable income derived from their Cyprus-based activities. The tax system in Cyprus allows non-residents to benefit from various exemptions and deductions under the Cyprus Income Tax Law, making it an attractive jurisdiction for international businesses.

To ensure compliance with Cypriot tax regulations, non-resident entities should seek professional advice from tax consultants or legal experts familiar with Cyprus's tax framework. Staying up-to-date with tax deadlines and filing requirements is crucial for avoiding penalties.

Bookkeeping and Financial Reporting Non-Resident Entities in Cyprus

Non-resident entities operating in Cyprus are subject to bookkeeping and financial reporting requirements under Cypriot law. These obligations are primarily governed by the Cyprus Companies Law and the International Financial Reporting Standards (IFRS), with the Cyprus Securities and Exchange Commission (CySEC) overseeing compliance for listed companies.

Non-resident businesses must maintain accurate records of their financial transactions and prepare financial statements at the end of each financial year. These financial statements should comply with Cypriot GAAP (Generally Accepted Accounting Principles) or IFRS, depending on the entity’s size and nature.

Content of Financial Statements

Financial statements must include at least the following:

  • A balance sheet showing the company’s financial position
  • A profit and loss account detailing the company’s income and expenses
  • Notes to the financial statements providing further details, including any changes in accounting principles

The financial statements must accurately reflect the company’s financial position, and any changes to accounting policies must be disclosed in the notes.

Consolidation Requirements

For parent companies, the consolidated financial statements must include the data of controlled subsidiaries and group companies. A subsidiary is considered controlled if the parent can exercise more than 50% of voting rights or appoint the majority of managing or supervisory directors.

Consolidation can be omitted under specific circumstances, such as when a subsidiary qualifies as a small company or when it is exempted under the 7th EU Directive on the preparation of consolidated financial statements.

Audit Requirements

In Cyprus, only medium and large companies or those applying IFRS are required by law to have their financial statements audited by an independent, qualified auditor. The audit report must confirm that the financial statements provide an accurate representation of the company's financial health and comply with Cypriot accounting standards.

Non-resident entities must ensure they meet the audit requirements if they fall under the relevant categories, and they should engage an independent auditor who is licensed by the Cyprus Audit and Accounting Supervisory Authority (CyASA).

Publication Requirements

In Cyprus, financial statements must be prepared and approved by the company’s managing directors no later than five months after the end of the financial year, with a possible extension of up to five additional months.

The publication requirements vary based on the size of the company. For medium and large companies, financial statements must be filed with the Cyprus Registrar of Companies.

Annual Accounts Filing Obligations

Almost all corporate entities in Cyprus, including non-residents, are required to file their financial statements annually with the Registrar of Companies. These filings form the foundation for taxation and corporate governance in Cyprus. Non-residents with a Cyprus branch or permanent establishment must comply with these filing obligations to avoid penalties.

Audit Requirements

In Cyprus, only medium and large companies, as well as those applying International Financial Reporting Standards (IFRS), are legally required to have their annual financial statements audited by an independent, qualified, and registered auditor. The auditor’s report must confirm whether the financial statements comply with the applicable accounting principles and accurately reflect the company’s financial position and performance for the year.

Publication Requirements

The financial statements must be prepared and approved by the company’s directors within nine months after the end of the financial year. Publication deadlines may vary based on the company’s size, as outlined in the table below:

Online Bookkeeping Services in Croatia

Online bookkeeping services are a key component for businesses in Cyprus that wish to streamline their financial operations. These services are designed to support businesses, regardless of size, by leveraging technology to provide accurate financial reports and efficient management of financial data.

Expertise in Online Bookkeeping Services

House of Companies’ online bookkeeping services in Cyprus are led by experienced, certified bookkeepers familiar with the unique needs of non-resident businesses in Cyprus. Our team is proficient in cloud accounting software like Xero and tailored accounting solutions for industries such as e-commerce and international trading.

Pricing for Online Bookkeeping Services

Our pricing structure is designed to provide flexibility for businesses operating in Cyprus. Common pricing models include:

  • Hourly rates for specific tasks
  • Monthly subscription fees for continuous bookkeeping
  • Project-based pricing for occasional projects
  • Value-based pricing focused on the value of the service provided

Online Bookkeeping Services Features

House of Companies’ online bookkeeping services in Cyprus include:

  • Transaction recording and reconciliation
  • Accounts payable and receivable management
  • Bank statement reconciliation
  • Payroll processing and tax compliance
  • Real-time financial reporting and analytics
  • Multi-currency support for international businesses

Our advanced features support VAT/GST returns across multiple jurisdictions and ensure compliance with Cyprus tax laws, making it easier for non-resident entities to manage their financial operations.

Industry-Specific Bookkeepers for Cyprus

Industry-specific bookkeepers offer invaluable expertise, particularly for businesses operating in Cyprus. These professionals possess in-depth knowledge of local financial regulations, tax implications, and sector-specific best practices. Here’s how they can support businesses in Cyprus:

  • Protect Your Financial Policies: Bookkeepers ensure your organization adheres to Cyprus' accounting principles, protecting you from non-compliance penalties.
  • Adherence to Local and EU Regulations: Given Cyprus' position within the EU, bookkeepers ensure compliance with EU Directives and local regulations governed by the Cyprus Tax Department and other regulatory bodies.
  • Quick Error Identification: Cyprus-specific accounting tools and practices help quickly identify discrepancies and address issues early.
  • Maintain Strong Commercial Awareness: Industry-specific bookkeepers in Cyprus work with a wide range of stakeholders, ensuring businesses stay competitive and financially sound in local and international markets.

Pricing Models for Cyprus-based Industry-Specific Bookkeepers

While pricing can vary based on service complexity, industry-specific bookkeepers in Cyprus generally offer several flexible pricing models to suit businesses of all sizes:

  • Value-Based Pricing: Charges are based on the perceived value of services to the business rather than time spent.
  • Tiered Packages: Depending on your needs, you can select from basic, standard, or premium packages tailored to Cyprus' financial and compliance needs.
  • Customized Pricing: Tailored to specific business requirements and industry demands, particularly useful for non-EU companies expanding into Cyprus.

Key Features of Cyprus Industry-Specific Bookkeeping Services

Bookkeepers in Cyprus offer tailored services designed to meet the unique needs of businesses, including:

  • Specialized Software Implementation: Use of local accounting platforms compatible with Cyprus' tax regulations, ensuring accurate bookkeeping.

  • Industry-Specific Compliance: Compliance with Cypriot financial laws, including VAT reporting, corporate tax filings, and annual audits.

  • Risk Management: Risk management practices specific to Cyprus’ economic environment and industry trends.

  • Advanced Data Analytics: Leveraging local business intelligence tools to inform better decision-making processes.

  • Integration with Local Technologies: Seamless integration with Cyprus-specific technologies, including tax portals for VAT and corporate tax filings.

Virtual Bookkeeping Assistants in Cyprus

Virtual bookkeeping assistants provide comprehensive remote financial support for businesses in Cyprus, helping streamline accounting processes with efficiency and accuracy. They offer support across a wide range of tasks:

  • Transaction Recording: Virtual assistants ensure all transactions are accurately recorded and reconciled in accordance with Cypriot regulations.

  • Payroll Processing: Handling payroll, including deductions required by Cyprus law, such as social insurance contributions and taxes.

  • Tax Compliance: Ensuring all tax filings, including VAT and corporate tax returns, are submitted according to Cyprus' tax deadlines.

Defining Your Bookkeeping Requirements in Cyprus

Before choosing a bookkeeper for your Cyprus-based business, it is important to define your financial requirements clearly. In Cyprus, businesses need to prepare financial statements that provide an accurate view of their financial performance and position, in line with local laws. Key considerations include:

  • Annual Financial Statements: Cyprus-based businesses must file balance sheets, profit and loss accounts, and directors' reports with the Department of Registrar of Companies and Official Receiver (DRCOR).

  • VAT Registration and Reporting: Whether your business is based in Cyprus or abroad, having your VAT registration handled by a professional is crucial for compliance with the Cyprus Tax Department.

  • Corporate Tax Filing: Cyprus companies are required to file annual corporate tax returns with the Inland Revenue Department.

  • EU and Non-EU Compliance: Both EU and non-EU businesses expanding into Cyprus need to understand the local tax obligations, including the Cyprus VAT system, which aligns with EU directives.

Analyzing Cost-Effectiveness of Bookkeeping Services

Choosing a bookkeeping service in Cyprus is a balance between cost and the value of compliance, efficiency, and reliability. Businesses should assess the following cost-effectiveness aspects:

  • Scalability: Bookkeeping services that grow with your business, accommodating both local and international operations.

  • Technology Integration: Access to advanced technologies without the overhead of in-house systems.

  • Time Savings: Outsourcing bookkeeping tasks allows business owners to focus on their core activities, while ensuring tax compliance and accurate financial reporting.

  • Risk of Non-Compliance: Minimizing the risk of financial penalties by ensuring timely and accurate filings as per Cyprus and EU regulations.

Cyprus Bookkeeping Services for EU and Non-EU Countries

At House of Companies, we offer expert bookkeeping services not only for businesses based in Cyprus but also for EU and non-EU entities expanding into Cyprus. Our services include VAT registration, tax filings, payroll processing, and annual reports, all tailored to local regulations.

Are you struggling to find an accountant with fair prices and perfect services?

Struggling to find an accountant with fair prices and excellent services in Croatia? We offer transparent pricing and top-notch services tailored to your needs.

Choosing the best corporate structure can be challenging. We provide unbiased advice to help you select the right structure that aligns with your goals and complies with Croatian regulations

Many agents lack real-time insights into your company’s responsibilities. Our services ensure you stay informed and in control with timely updates and transparent operations.

Popular Cyprus Accounting Services
for EU and Non-EU Businesses

Expanding to a new market has never been easier. Our one-stop-shop portal simplifies your transition by handling everything from your new address and business setup to opening a bank account, obtaining a VAT ID, and becoming an employer, all in compliance with Croatian regulations and supported by local government agencies.


VAT number registration

We guide both EU and non-EU companies in obtaining their VAT number in Cyprus, ensuring smooth integration with the local tax system.

 


Register as Employer

 

For businesses establishing a presence in Cyprus, we assist with registering as an employer, whether you are a local or international company.

 


VAT Submission

 

Our subscription service allows businesses to file VAT returns directly with the Cyprus Tax Department using a prepared VAT analysis, or we can submit on your behalf.

 

 


VAT registration & Filing for e-commerce traders

 

Register your non-domestic company as employer in numerous EU countries, without hefty fees or local company formation!

 

Hear what others have
to say about our Dutch Accountants

"We expanded our operations into Cyprus, and House of Companies helped us with VAT registration and tax filings. Their service was fast, efficient, and cost-effective."

Global Talent Recruiter

"With House of Companies, I don’t worry about VAT returns. They take care of everything, including compliance with both EU and Cypriot tax regulations."

Spice & Herbs Export

"The practical know-how in Entity Management provided by House of Companies made me comfortable to get more involved in my own tax filing, and it worked perfectly!"

IT Firm

Looking for Personalized Support from a
Cyprus Tax Advisor?

While online platforms may help with basic needs, having a local tax professional in Cyprus is crucial for businesses that need to comply with detailed tax regulations. A Cyprus-based tax advisor will ensure that your operations are fully compliant with local laws and tax codes.

House of Companies offers real-person support from local tax advisors, ensuring personalized assistance with VAT filings, corporate tax returns, and more.

Advantages of Our Cyprus Accounting Compliance


We ensure your business remains fully compliant with local tax laws and international regulations


Receive expert advice from experienced tax professionals based in Cyprus


From VAT registration to corporate tax filings, we handle everything for both EU and non-EU businesses.

Application Case Studies

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Frequently Asked Questions

Do I need a local accountant to file taxes in Cyprus?In Cyprus, it is mandatory for businesses to have a local tax representative or accountant. Our team can assist in finding the right local accountant and handle all the required filings on your behalf to ensure full compliance with Cyprus tax laws.
How do I register my business for VAT in Cyprus?Our team will assist you in registering your business for VAT in Cyprus. We will guide you through the entire process, including preparation of necessary documents and submission to the local tax authorities, ensuring compliance with Cyprus VAT regulations.
Can House of Companies assist with VAT filings for businesses in non-EU countries?Yes, we can assist with VAT registration and filing in non-EU countries. We are experienced in working with businesses that operate in regions outside the EU, and we ensure that they meet the local VAT regulations and reporting requirements.
What are the costs associated with your accounting services in Cyprus?Our pricing models are flexible and tailored to the specific needs of your business. We offer fixed rates, hourly fees, and subscription models depending on the complexity of the services you require. Contact us for a personalized quote based on your business needs.
Do you provide real-time support and updates for accounting services?Yes, we offer real-time support through our online portal. We ensure that you have full access to your accounting records and receive timely updates regarding tax filing deadlines and compliance statuses.
What is the process for filing tax returns in Cyprus for a foreign company?For foreign companies operating in Cyprus, we help with the preparation and submission of your tax returns in accordance with local regulations. We ensure your filings are accurate, complete, and submitted on time to avoid penalties.

Wherever I pay tax,
that’s my home.

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to bring your business a step closer
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