Cancellation of Annual Levy for Companies in Cyprus from 2024

A parliamentary session was convened in Cyprus, during which a decision was made to annul the annual levy of 350 euros previously imposed on each company on the island. Representatives of the parliament view this as a justified move, considering that the tax was introduced as part of economic measures, but its term has expired.

According to the new Law No. 25(I)/2024, which was published in the Official Gazette of the Republic of Cyprus on March 15, 2024, annual payments levied on Cypriot companies are officially abolished from 2024. Companies that have already paid the annual fee for 2024 will be reimbursed.

Cyprus is actively promoting its reputation as a reliable and transparent international financial center. The cancellation of the annual levy on the island will reduce the financial burden on companies by reducing operational expenses. This is an important step that contributes to improving the business climate in Cyprus.

Many foreign entrepreneurs prefer to register their companies in Cyprus due to its favorable tax policies and various incentives that facilitate business development.

• The corporate tax rate in Cyprus is fixed at 12.5%, and profits from dividends, interest, and other passive income are not subject to tax.
• There is no tax on the sale of corporate rights on the island.
• Employer and employee contributions to wages are among the lowest in the European Union.
• Additionally, thanks to the special IP BOX regime, companies engaged in intellectual property can reduce corporate tax to 2.5% and distribute dividends tax-free.

Registering a company in Cyprus opens up broad prospects for business, providing an opportunity to conduct entrepreneurial activities in a stable jurisdiction with access to international markets.

It also offers the opportunity to legally minimize taxation, both at the corporate and personal levels, making Cyprus an attractive location for business and investment.

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