Title: The Annual Compliance Checklist for Cyprus Companies
Every Cyprus company has important annual obligations to stay compliant and avoid fines. Let’s break down the six key requirements you need to know.
1. Annual Return (HE32 Form)
All Cyprus companies must hold an Annual General Meeting (AGM) and submit an Annual Return (form HE32) to the Registrar of Companies. The Annual Return provides an up-to-date snapshot of your company’s status, including any changes in directors, shareholders, or company secretary.
Deadline: within 42 days after the AGM.
Note: New companies don’t need to file in their first year if they file within 18 months of incorporation.
Fee: The cost for filing the annual return is €350 plus VAT.
The Annual Return must be submitted together with your company’s financial statements.
2. VAT Reports (if applicable)
If your company is trading or engaging in activities (not just holding assets), you must register for VAT and file quarterly VAT returns—even if no transactions took place.
Important: VAT quarters do not align with the calendar year but follow the Tax Department’s schedule.
3. Audited Financial Statements
All Cyprus companies must prepare financial statements in line with International Financial Reporting Standards (IFRS). For most companies, a licensed local auditor must review these statements. However, small companies may be exempt from an audit if they meet two of these three conditions:
- Gross assets less than €3,400,000
- Net turnover under €7,000,000
- Fewer than 50 employees
Deadline: Submit the financial statements to the Registrar of Companies by December 31 of the following year.
4. Tax Returns
Companies must keep proper books and records to file annual tax returns.
– Annual tax returns: Due by December 31 of the following year.
– Temporary tax returns: Due by August 1 of the tax year, with payments in three equal instalments (Aug 1, Sept 30, Dec 31).
– Any remaining balance is payable by August 1 of the following year.
Note: Some companies must file tax returns electronically, with an automatic three-month extension for online filings.
5. Annual Levy
For companies registered before June 2023, an Annual Levy of €350 is payable each year starting from the year of registration.
Good news! Companies registered after June 2023 no longer have to pay this annual levy.
6. Register Beneficial Owners
Since March 2021, all Cyprus companies must register their ultimate beneficial owners (UBOs) with the electronic register maintained by the Registrar of Companies.
👉 Learn more here: Ultimate Beneficial Owners Registry for Cyprus Companies
✅ Annual Compliance Checklist
- 📝 Prepare and file your Financial Statements to the Tax Office.
- 📤 Prepare and file your Annual Return (HE32).
- 💡 Submit your VAT reports on time (if applicable).
- 💰 Pay any fees to your service providers.
By keeping up with these annual requirements, you ensure your Cyprus company stays compliant and avoids penalties.
