Cancellation of the Annual Levy for Companies in Cyprus Has Been Announced

The President of Cyprus announced the decision of the Council of Ministers of February 21 to abolish the annual levy imposed on companies registered in the country. This decision will enter into force during 2024 and is aimed at strengthening the status of Cyprus as a business-friendly jurisdiction and stimulating economic growth.

Currently companies registered in Cyprus must pay an annual fee of EUR 350 to the Registrar of Companies; in the opposite case, they face the risk of a strike-off from the register. This legal obligation, established since 2011, has created a financial burden for businesses and complicated the regulatory environment. A large number of “dormant” companies are debtors to the Cypriot treasury, the debt being estimated at EUR 30 million.

By abolishing the annual levy, Cyprus aims to optimize its regulatory framework and create a more favorable environment for entrepreneurship and investment. The decision is expected to have a positive impact on the number of cases of removal of companies from the Cyprus register due to non-payment of the levy.

In order for the decision to enter into force, the relevant amendments to the Companies Law of Cyprus are expected.