Are you thinking to start business in Cyprus? Many foreign investors like this idea. Cyprus has nice weather, good location, and friendly tax system. But before you pack your bags, you need to know the real costs. Not just the big numbers you see in advertisements. We talk about the hidden costs that surprise many business owners.
This guide will help you estimate accounting costs in Cyprus for 2026. We give you real numbers, not promises. You will learn about the annual levy, incorporation fees, and why audit fees are getting more expensive now.
Why Cyprus is Still Good for Business
Cyprus is small island in Mediterranean. But it is big in business world. Many companies choose Cyprus for European base. The corporate tax is only 12.5%. There are many double tax treaties. English is widely spoken. The legal system is based on UK law, so many investors feel comfortable.
But starting company here is not free. You must pay many fees. Some fees are clear. Some fees hide in small print. This article show you all costs. So you can budget proper.
The Real Incorporation Costs: Not What You Think
Many websites tell you “start company in Cyprus for €1,200”. Sounds cheap, yes? But this is not full story. The real cost is higher. Let me explain why.
The basic incorporation fee is around €1,200 to €1,500. This include lawyer fees and registration. But this is minimum package. For foreign investors, you need more services. You need proper setup, not just basic one.
Real incorporation cost is approximately €3,950. Why so much? Let me break down:
- Lawyer and professional fees: €1,200 (basic)
- Government registration fees: €500-600
- Company name approval: €40-50
- Memorandum and Articles of Association: included
- First year registered office: €280-380
- Company secretary (first year): €380-450
- Compliance and onboarding: €150
- Document certifications and stamps: €100-200
- VAT registration: €150-500
- Tax identification code: €200
- Social insurance registration: €150
- Bank account opening assistance: €500-750
Add all these, you get near €3,950. Some service providers charge even more if your company structure is complex.
Pro tip: Always ask what is included in the price. Many cheap quotes hide extra fees. They charge separately for certificates, stamps, and registrations. This adds up fast. Get detailed breakdown before you pay anything.
Annual Levy: The €350 You Must Pay Every Year
Every Cyprus company must pay annual levy to government. This is compulsory. No exceptions. Even if your company does no business, you must pay.
The annual levy is €350 per year. You must pay before 30 June each year. For year 2026, you pay by 30 June 2026.
If you forget to pay, there is penalty. The fine is 10% if you pay within 2 months after deadline. After that, it becomes 30% penalty. So pay on time. Save money.
This levy is for Registrar of Companies. It keeps your company in good standing. If you don’t pay for many years, your company can be struck off. Then you have big problems.
Many foreign investors forget this small cost in their budget. But €350 every year adds up. For 5 years, this is €1,750. Keep this in mind when you estimate accounting costs in Cyprus for long term.
Audit Fees: The Hidden Cost That is Rising Fast
Now we come to biggest surprise for many investors. Audit fees in Cyprus are going up. Fast. Why? This is because of new rules. The government has made stricter rules to stop money laundering and to manage companies better.
Why Audit Fees Are Higher in 2026
In past few years, Cyprus made many new laws. These laws make audits more difficult. More work for auditors means higher bills for you.
Key regulations increasing audit costs:
- New AML Directive (2025): Central Bank of Cyprus made stricter anti-money laundering rules. Auditors must check more documents. They must verify customer due diligence. This takes more time.
- CySEC Directive R.A.D 282/2024: This came in August 2024. It requires enhanced due diligence. Auditors must check electronic verification systems. They must review risk assessments. More work, more fees.
- Economic Substance Requirements: Companies must prove real business activity in Cyprus. Not just shell company. Auditors must check office, staff, and board meetings. This means more documentation and higher audit cost.
- Digital Filing Requirements: All companies must file documents electronically. Auditors need new software and systems. They pass this cost to clients.
- Independent AML Audits: Now many companies need separate AML compliance audit. This is not part of normal audit. You pay extra for this.
Real Audit Fee Numbers
So what you actually pay? It depends on your company size and transactions.
For dormant companies (no activity): €500-€750 per year. This is minimum. Just to file nil returns and dormant accounts.
For small companies (1-50 transactions): €1,500-€2,500 per year. This include basic audit and tax returns.
For medium companies (51–200 transactions), the cost is €2,500 to €4,000 per year. When there are more transactions, auditors have more work to do.
For large or complex companies: €4,000-€8,000+ per year. If you have many invoices, employees, or international transactions, expect higher fees.
For companies with high-risk business (crypto, gaming, international trade): Add 30-50% more. Because auditors must do enhanced checks.
To estimate accounting costs in Cyprus properly, you must include audit fees. Don’t think you can avoid this. It is legal requirement for almost all companies.
Accounting Fees: The Ongoing Monthly Cost
Audit is once per year. But accounting is ongoing. You need accountant to keep your books. This is separate from audit fee.
Accounting fees depend on number of transactions:
- 1-25 transactions per month: €1,400-1,500 per year
- 26-50 transactions: €1,500-1,750 per year
- 51-100 transactions: €1,750-2,000 per year
- 101-200 transactions: €2,000-2,500 per year
- 201+ transactions: €2,500-3,500+ per year
These fees include:
- Posting transactions to accounting software
- Quarterly VAT returns (if registered)
- VIES returns (if you trade with EU)
- Payroll processing (if you have employees)
- Preparation of management accounts
If you have online business with many small invoices, some accountants offer batch pricing. This can reduce cost. Ask about this option.
Important: The prices above are for accounting only. Audit fee is extra. Many people think one fee covers both. This is wrong. You pay accounting fee monthly/quarterly, and audit fee annually.
Other Hidden Costs You Must Know
There are more costs that many service providers don’t tell you upfront. Be ready for these:
1. Registered Office and Secretary Fees
Every Cyprus company must have registered office in Cyprus. You must also have company secretary.
- Registered office (from second year): €280-350 per year
- Company secretary (from second year): €380-450 per year
If you use nominee director or shareholder, add more:
- Nominee director: €950-1,200 per year
- Nominee shareholder: €300-500 per year
2. VAT and Tax Compliance
If your company registers for VAT (compulsory if turnover over €15,600), you have more costs:
- VAT registration: €150-500 (one-time)
- Quarterly VAT returns filing: €50-100 per return (if not included in accounting fee)
- VIES returns (for EU trade): €50 per month
3. UBO Registry Update
Cyprus has public registry of Ultimate Beneficial Owners (UBO). You must update this every year.
- UBO registry update: €50 per year
4. Annual Return Filing
Every company must file annual return with Registrar of Companies.
- Annual return preparation and submission: €80-150 per year
5. Tax Residency Certificate
If you want to use double tax treaties, you need tax residency certificate.
- Tax residency certificate: €250-350 per year
6. Bank Charges
Cyprus banks charge maintenance fees:
- Annual bank account maintenance: €150-300 per year
- Transaction fees: €5-25 per transaction
7. Apostille and Document Legalization
If you need to use Cyprus documents abroad, you need apostille.
- Apostille per document: €150-180
Total Budget for First Year: Real Example
Let me give you real example for small trading company with 50 transactions per month.
The estimated total first-year costs amount to €8,750. This total includes:
- Incorporation (all included): €3,950
- Annual Levy 2026: €350
- Accounting fees (50 transactions/month): €1,600
- Audit fees: €2,000
- VAT registration: €300
- UBO update: €50
- Annual return: €100
- Bank charges: €200
- Miscellaneous: €200
Note that the first year’s registered office and secretary fees are included in the overall cost.
This is for simple company. If you have employees, complex transactions, or high-risk business, budget €12,000-15,000 for first year.
How to Save Money: Practical Tips
Now you know the costs. But you can save money. Here are tips from people who already have companies in Cyprus:
1. Choose right service provider: Don’t go for cheapest option. They add hidden fees later. Choose provider with transparent pricing. Ask for full breakdown.
2. Combine services: Some firms offer package deals. Accounting + audit + secretary together can be cheaper than separate providers.
3. Keep good records: If your documents are organized, accountant spends less time. This means lower fees. Use simple accounting software from day one.
4. Pay annual levy on time: Avoid 10% or 30% penalty. Set reminder in your calendar.
5. Consider ready-made company: If you need company fast, ready-made (shelf) company costs €2,710. This includes first year office and secretary. Can be cheaper than new incorporation if you value speed.
6. Negotiate audit fee: If your transactions are simple, ask fixed fee audit. Some auditors give discount for long-term contract.
7. Use batch invoicing: For online businesses, ask accountant about batch processing. This reduces number of transactions they process.
8. Stay compliant: Non-compliance fines are very expensive. Better to pay correct fees on time than pay penalties later.
Red Flags: When Costs Are Too High
Some service providers try to cheat foreign investors. They think you don’t know local prices. Watch for these red flags:
- Incorporation quote below €1,200: Usually missing many necessary services
- “No audit required” claims: Almost all Cyprus companies need audit
- “All inclusive” under €2,500: Too good to be true. Hidden fees will come.
- Separate charges for every small thing: Should be package deal
- High nominee fees: Above €1,500 for director is too much
If you see these, get second opinion. Compare 3-4 providers before deciding.
2026 Outlook: What Will Change
For 2026, expect costs to rise slightly. Here’s why:
- Inflation: Service providers increase fees 5-10% each year
- More AML checks: New regulations mean more audit work
- Digital systems: Companies invest in new software, pass cost to clients
- Substance requirements: Proving real presence costs more
Budget 10% increase from 2025 prices. If something cost €3,500 in 2025, expect €3,850 in 2026.
Conclusion: Plan Your Budget Right
Starting company in Cyprus is still good idea. But you must budget correctly. The real cost is more than what advertisements show.
Key numbers to remember:
- Incorporation: ~ €3,950
- Annual levy: €350 every year
- Audit fees: €1,500-4,000 (rising due to new regulations)
- Accounting: €1,400-3,000 per year
- Other costs: €500 to 1,000 per year
Total first year budget for simple company: €8,000-10,000
When you estimate accounting costs in Cyprus, always add 20% buffer for surprises. There will always be something you forget.
Do your research. Ask many questions. Choose honest service provider. And keep money ready for all these costs. Then your Cyprus business will start smooth.
Cyprus is good place for business. But only if you know the real costs. Now you know. Good luck with your 2026 business plans!
