Cyprus Compliance Guide
Filing requirements, deadlines, and fees for Cyprus business entities.
Filing Obligations
Annual Levy
AnnualEvery company registered in Cyprus must pay an annual levy of €350 to the Registrar of Companies. This is separate from the annual return filing.
By 30 June each year
€350
10% surcharge if paid after 30 June but before 30 November; 30% surcharge if paid after 30 November. Company may be struck off for non-payment.
Online via the Department of Registrar of Companies portal or bank payment
Annual Return (HE32)
AnnualAll Cyprus companies must file an annual return (Form HE32) confirming details of directors, secretary, shareholders, share capital, and registered office.
Within 28 days of the anniversary of incorporation
€20 (if filed on time)
€50 if filed late but within 3 months; €100 if filed 3–6 months late; €250 if filed 6–12 months late; €500 if filed over 12 months late
Online via the Registrar of Companies portal
Corporation Tax Return
AnnualCyprus corporation tax is 12.5% (set to increase to 15% from 2026 under the EU Minimum Tax Directive — Pillar Two). Cyprus offers generous exemptions: no tax on dividend income (subject to conditions), no tax on profits from the sale of securities, and an IP box regime with an effective rate as low as 2.5%.
Within 15 months after the end of the tax year (i.e., by 31 March of the second year following the tax year)
No filing fee
€100 penalty for the first late return; €200 for the second consecutive late return; plus 5% of tax due
Online via TaxisNet
Temporary Defence Contribution (Special Defence Contribution)
AnnualCyprus-tax-resident companies are subject to Special Defence Contribution (SDC) on certain passive income: 17% on dividend income (with exemptions), 30% on rental income (after 25% deemed expense deduction), and 0–30% on interest income. Non-domiciled Cyprus tax residents are exempt from SDC.
Same as corporation tax return
No filing fee
Interest and penalties on late payment
Online via TaxisNet
VAT Return
QuarterlyStandard VAT rate is 19%. Reduced rates of 9%, 5%, and 3% apply to certain goods and services. Registration is compulsory when annual turnover exceeds €15,600.
By the 10th day of the second month following the end of the VAT period
No filing fee
€51 per return; interest on late payment at 1.75% per annum above the ECB base rate
Online via TaxisNet
Key Dates
Frequently Asked Questions
What is the corporate tax rate in Cyprus?
12.5%. This is one of the lowest in the EU. From 2026, companies in scope of the EU Minimum Tax Directive (Pillar Two) with group revenue above €750M will be subject to a minimum effective rate of 15%. Cyprus also offers an IP box regime with an effective rate as low as 2.5%, and no tax on gains from the disposal of securities.
Why is Cyprus popular for holding companies?
Cyprus offers an extensive double taxation treaty network (over 65 treaties), no withholding tax on outbound dividends to non-residents, full exemption of dividend income received (subject to conditions), no capital gains tax on disposal of shares, and the IP box regime. Combined with EU membership and the 12.5% rate, this makes Cyprus one of the most efficient holding company jurisdictions in Europe.
What does it cost to register a company in Cyprus?
Registrar fees are minimal: name approval €30, registration of M&A approximately €105 (for standard share capital), certificate of incorporation €35. Annual levy: €350. Total professional fees for formation typically range from €1,500 to €3,000.
What is the non-domicile regime?
Individuals who are Cyprus tax residents but not domiciled in Cyprus (‘non-doms’) are exempt from the Special Defence Contribution on dividends, interest, and rental income. Combined with no tax on capital gains from securities, this makes Cyprus an attractive personal tax jurisdiction for international business owners.
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Get Started FreeLast updated: 2026-02-27. Information is provided for general guidance and may not reflect the most recent changes. Always verify with the official state registrar.