What a Cyprus company costs to run each year

Most formation quotes stop at the moment the company is registered — which is exactly where the recurring bill begins. The setup fee is a one-off; the annual running cost is what actually keeps a Cyprus company compliant and in good standing year after year. The good news is that the list is short and predictable, and one line item that used to sit on it — the €350 annual levy — is gone. This page lays out the year-two-onward costs by block, with the state figures as of July 2026. Setup and one-off fees are covered separately on the cost and timeline page.

The four recurring blocks

Every active Cyprus company should budget for these, whether or not it trades much:

• Bookkeeping and VAT compliance. The largest variable, because it scales with transaction volume and whether you are VAT-registered. A dormant holding company is light; a company issuing hundreds of invoices a month is not. Scope and inclusions sit on the accounting services page.
• Financial statements plus audit or review. Every company prepares annual financial statements; most have them audited.
• Registered office and secretary. Statutory requirements under the Companies Law, billed as service fees — usually annually.
• State filing fees. Small and fixed — chiefly the €20 HE32 annual return.

Audit or review — and why the difference matters

The audit is the default, not the exception. Nearly every Cyprus company has its financial statements assured by a licensed auditor, dormant companies included. The relief valve is the review engagement: the smallest private companies can take it instead of a full audit if turnover stays below €300,000 — the threshold rose from €200,000 for financial years beginning on or after 6 February 2026 — and gross assets stay below €500,000, both conditions met for two consecutive years.

Two honest caveats. A review is lighter assurance, but it is still performed by a licensed auditor and the statements are still prepared and filed — it is not a way to skip the year. And qualifying for a review does not always mean taking it: banks, investors and future buyers frequently expect audited statements, so the cheaper route can cost you elsewhere. We model both before recommending one. The full picture is on the audit page.

The HE32 annual return: cheap to file, expensive to forget

The HE32 annual return to the Registrar carries a €20 filing fee and is due within 28 days of the company’s return date, with the prior year’s financial statements attached. Miss it, and the cost stops being trivial: late filing runs €50 plus €1 per day, capped at €150 per return. It is the sort of deadline that costs nothing to meet and adds up quietly when a company drifts without a compliance calendar.

UBO: the annual confirmation nobody remembers

The beneficial-ownership register carries its own recurring obligation: an annual confirmation window at the end of each year, plus filings within 45 days whenever ownership details change. The penalty regime here is the harshest of the routine filings — €100 for the first day of default and €50 per day after, capped at €5,000. It is a five-minute task with a four-figure downside, which is precisely why it belongs on a managed calendar rather than in someone’s memory.

Payroll: only if you employ, but budget properly when you do

If the company has employees — including an owner drawing a salary — payroll adds employer on-costs on top of the gross wage. For 2026 the main components are social insurance at 8.8% employer and 8.8% employee, the GESY health levy at 2.90% employer and 2.65% employee, plus smaller employer funds: the Social Cohesion Fund at 2.0% (uncapped), the Redundancy Fund at 1.2% and the Industrial Training Fund at 0.5%. Social insurance and the capped funds stop at the maximum insurable earnings ceiling of €68,904 for 2026; the Social Cohesion Fund does not. To see the full loaded cost of a given salary, run it through the salary calculator rather than estimating. Setup, month-by-month operation and filings are on the payroll page.

The €350 levy: gone, with a footnote

The annual company levy of €350 was abolished for 2024 and every year since. The footnote: unpaid levies for 2011–2023 did not vanish — they remain collectable with surcharges of 10% to 30% for late payment. Form a fresh company and you will never see the charge. Take over an existing one, and asking for proof the arrears are settled is basic diligence before you sign.

What this means for you

A Cyprus company’s annual cost is not a mystery — it is four predictable blocks plus payroll if you hire, and a couple of state fees measured in tens of euros. The traps are not the fees themselves but the penalties: a slipped HE32 at up to €150, a forgotten UBO confirmation at up to €5,000. Both disappear the moment someone owns the calendar. If you want a running-cost estimate built around your actual transaction volume and headcount rather than a generic figure, send us the shape of the business and we will price the year honestly, line by line.