True Cost of Running a Cyprus Company (2026): Audit & Budget

A Cyprus company is inexpensive to incorporate and competitively priced to run, but the annual running cost is not zero, and it is not optional. Every Cyprus limited company — even a dormant one — must be statutorily audited by a licensed Cyprus auditor, file a corporate tax return, submit the annual return (HE32), and maintain a registered office, secretary, and UBO record.

This article sets out every recurring cost a Cyprus company faces, with realistic 2026 price ranges and three scenario budgets (dormant / typical trading / enterprise) so you can plan with your eyes open before you incorporate.

The honest cost overview

Every Cyprus company carries the same core cost stack. The only questions are how much of each item applies to your company and whether any additional items (payroll, nominees, transfer pricing) are in scope.

Statutory audit (mandatory for all)

A statutory audit is mandatory for every Cyprus limited company, with no small-company exemption. Budget €800–€1,200 for a dormant company, €1,200–€2,000 for a small active one, and €4,000+ for an enterprise. It must be signed by an ICPAC-licensed independent auditor and filed with the tax return and annual return.

This is the single biggest difference between Cyprus and jurisdictions like the UK or Ireland. Every Cyprus limited company must have its annual financial statements audited by an ICPAC-licensed independent auditor. There is no small-company audit exemption. Companies Law Cap.113

Realistic audit fees:

• Dormant company — €800–€1,200.
• Small active company (≤100 transactions/year) — €1,200–€2,000.
• Mid-size trading company (100–500 transactions) — €2,000–€3,500.
• Enterprise (500+ transactions, multi-entity, consolidation) — €4,000+.

The audit must be filed with the corporate tax return and, via the annual return (HE32), with the Registrar. Missing audit filings lead to cascading penalties and, eventually, strike-off.

Monthly bookkeeping & accounts

Every Cyprus company must keep proper books of account in line with IFRS. Bookkeeping is the process of recording every invoice, bill, payment and receipt into the accounting system, producing the trial balance that feeds the statutory audit and the tax return.

Typical bookkeeping fees vary with transaction volume:

• Dormant / nil-activity: minimal, often bundled into the audit fee.
• 1–100 transactions/year: €800–€1,500.
• 100–300 transactions/year: €1,500–€2,500.
• 300+ transactions/year: from €2,500 upwards.

Corporate tax return (TD4)

Every Cyprus tax-resident company must file an annual corporate income tax return (form TD4) and pay tax at the 15% corporate rate. Preparation fees typically run €300 for a simple holding with no trading, up to €1,200 for a trading company with IP Box, NID and group-relief computations.

Every Cyprus tax-resident company files an annual corporate income tax return (form TD4). Under the 2026 reform, for tax years from 2026 onwards the TD4 is due by 31 January of the second year following the tax year (e.g. the 2026 TD4 is due 31 January 2028), which is also the date for settlement of the balance of tax — replacing the previous 31 March return deadline and 1 August payment deadline. Provisional tax is still paid in two instalments on 31 July and 31 December of the relevant year. Cyprus Tax Reform 2026 (KPMG Cyprus, Dec 2025)

Fees for preparation and filing of the TD4 typically range from €300 for a simple holding with no trading activity, to €1,200 for a trading company with IP Box claims, NID, and group-relief computations.

VAT, VIES and OSS filings

A Cyprus company must register for VAT once taxable turnover exceeds €15,600 a year for most services. The standard VAT rate is 19%. Ongoing compliance costs €600–€1,200 a year for a quarterly-only filer, rising to €1,200–€2,400 where VIES and OSS returns are also required.

A Cyprus company must register for VAT once it exceeds the mandatory threshold for its activity type (€15,600/year for most services, a tighter threshold for EU-cross-border services). VAT Law N.95(I)/2000 Once registered, the company files quarterly VAT returns and, where relevant, VIES statements (for intra-EU B2B services and goods) and OSS returns (for B2C digital services sold across the EU).

Typical annual fees for VAT compliance: €600–€1,200 for a quarterly-only filer; €1,200–€2,400 where VIES + OSS are also required. See our dedicated guide on Cyprus VAT registration and compliance.

Payroll & social insurance

If your Cyprus company has employees, monthly payroll processing costs €30–€75 per employee per month (€360–€900 a year each). Beyond the processing fee, employer-side social insurance and GESY contributions add roughly 14–16% to gross salary as a real cash cost.

If your Cyprus company has employees, you must run monthly payroll. Each month, PAYE (income tax withholding), social insurance contributions, and GESY (National Health System) contributions are calculated, paid to the authorities, and documented. At year-end, an annual Employer's Return (IR7) is filed.

Fees typically run at €30–€75 per employee per month (so €360–€900 per employee per year), with a higher first-month fee for new employee setup (€50–€120). Employer-side social contributions add roughly 14–16% to gross salary and are a real-money cash cost separate from the payroll processing fee.

Annual Return (HE32) & registry

Every Cyprus company must file an annual return (form HE32) with the Registrar of Companies, disclosing current directors, secretary, shareholders, registered office, and UBO status. The filing fee is modest (€100–€200 professional fee plus a Registrar fee of €20), but missing the filing triggers escalating penalties.

The UBO registry must also be kept current. Any change in beneficial ownership must be filed within 45 days, and an annual confirmation of the UBO details is due each year between 1 October and 31 December. Prevention and Suppression of Money Laundering Activities Law N.188(I)/2007

Registered office & secretary

A Cyprus company must have a registered office in Cyprus and a corporate secretary. If you have Cyprus-based operations, your own office can serve as the registered office and an employee or director can serve as secretary — no extra fee. For international owners without physical Cyprus presence, both services are typically provided by the firm handling the company:

• Registered office: €300–€600/year.
• Corporate secretary: €300–€600/year.
• Bundled: €500–€1,000/year.

Nominee director & secretary (optional)

A nominee director is a Cyprus-resident lawyer (or their delegate) appointed as director to establish Cyprus tax residency of the company, protect the UBO's privacy on the Registrar's database, or both. Nominee services are not mandatory, but they are important for:

• Tax-residency substance (especially for the 60-day rule). Article 2, Income Tax Law (Amendment) N.119(I)/2017
• Cyprus bank onboarding (the nominee is often known to the bank).
• Privacy, where the UBO prefers not to appear as a director on public records.

Typical fees: nominee director €1,500–€3,000/year; nominee secretary €500–€1,200/year. The UBO still appears on the confidential UBO registry maintained by the Registrar — nominees do not hide ownership, they abstract it from the public-facing HE3.

Transfer pricing & substance (where applicable)

If your Cyprus company has material intra-group transactions (loans, royalties, management fees, services), Cyprus transfer pricing rules require contemporaneous documentation. Since 2023, a dedicated TP file and simplified or full master/local file may be required depending on the volume of related-party transactions.

Basic TP file for a simple structure: €1,500–€3,000. Full master/local file for larger groups: €5,000–€15,000. Most owner-managed Cyprus companies without material intra-group flows do not need a TP file.

Three realistic scenario budgets

Scenario 1: Dormant holding company

A Cyprus holding owning a single foreign subsidiary, no trading activity, no employees, no VAT registration, receiving occasional dividends:

• Statutory audit (dormant): €900
• Bookkeeping (minimal): €300
• Corporate tax return (simple): €350
• Annual Return HE32 + UBO: €150
• Registered office + secretary: €600
• Total: €2,300 per year
• Add nominee director if used: +€2,000 → €4,300

Scenario 2: Typical trading company, 2 employees

A Cyprus SaaS company with ~200 annual transactions, VAT-registered, running monthly payroll for 2 employees:

• Statutory audit: €1,800
• Bookkeeping: €1,800
• Corporate tax return: €700
• Quarterly VAT + VIES/OSS: €1,500
• Payroll (2 employees): €1,200
• Annual Return HE32 + UBO: €200
• Registered office + secretary: €800
• Total: €8,000 per year — or €2,900 under our Scale or Investment Business fixed-fee package (excluding VAT).

Scenario 3: Enterprise trading company, 10+ employees

A Cyprus operating entity with substantial transaction volume, a fully-staffed Cyprus team, multiple EU subsidiaries, IP Box claim, transfer-pricing file:

• Statutory audit: €4,000+
• Bookkeeping: €4,000+
• Corporate tax return (complex): €1,200
• Quarterly VAT + VIES/OSS: €2,400
• Payroll (10 employees): €6,000
• Annual Return HE32 + UBO: €250
• Registered office + secretary: €1,000
• Transfer pricing file: €3,000+
• Total: €21,850+ per year, or our Enterprise accounting package from €3,500 as a base plus per-employee payroll.

Penalties if you skip anything

Penalties are cumulative and are enforced. The only reliable way to avoid them is to engage a firm that tracks the compliance calendar centrally and files on time — which is the core of our Accounting & Audit service.