Accounting Services in Cyprus

Overview

A Cyprus company operates inside a mature EU compliance framework. Every entity must keep proper books and records, prepare financial statements under International Financial Reporting Standards (IFRS), undergo a mandatory annual statutory audit by a licensed Cyprus auditor, and file with both the Tax Department and the Registrar of Companies. Cyprus is one of the few EU jurisdictions with no general small-company audit exemption, so this obligation applies to almost every company regardless of size. Legarithm manages the full cycle: ongoing bookkeeping, VAT, payroll and social insurance, preparation of IFRS-compliant accounts, and coordination of the independent audit and corporate tax return. Our objective is a clean, defensible set of numbers filed on time, every year.

Who it suits

Our Cyprus accounting service fits holding and trading companies, IP-owning entities using the Cyprus IP Box regime, professional and consultancy firms, e-commerce and software businesses, and international groups using Cyprus as an EU base. It suits founders who want a single English-speaking partner to handle compliance, as well as larger groups that need structured monthly management reporting and consolidation support.

Requirements & obligations

Cyprus law requires every company to maintain accounting records that explain its transactions and financial position, retained for at least six years. Companies must prepare annual IFRS financial statements, have them audited by a licensed statutory auditor, file an annual return (form HE32) with the Registrar, and submit a corporate income tax return (TD4) to the Tax Department. VAT registration is mandatory once the turnover threshold is exceeded (and often advisable earlier), with periodic VAT returns and, where relevant, VIES and Intrastat reporting for intra-EU trade. Employers must register with the Social Insurance Services, operate PAYE on payroll, and withhold and remit social insurance and General Healthcare System (GHS/GeSY) contributions.

Process & timeline

We begin with an onboarding review of your activity, banking, contracts and prior accounts. We then set up a bookkeeping rhythm (monthly or quarterly), reconcile bank and ledger data, and prepare VAT and payroll filings on their statutory cycles. After year-end we close the books, draft IFRS financial statements, and liaise with the statutory auditor through to signed accounts; we then prepare and file the corporate tax return, manage provisional (temporary) tax instalments, and complete the Registrar filings. Onboarding typically takes a few weeks; thereafter compliance follows fixed annual and periodic deadlines that we track and remind you of well in advance.

Costs

Fees depend on transaction volume, number of bank accounts, VAT and payroll scope, and group complexity. We work on transparent fixed monthly or annual packages, or per-engagement quotes for audit coordination and tax filing. Indicative pricing starts from a modest monthly retainer for dormant or low-activity companies and scales with activity; current figures are available on request after a short scoping call.

Context & comparison

Cyprus levies corporate tax at 12.5%, among the lowest headline rates in the EU, with a 19% standard VAT and attractive regimes such as the IP Box and the notional interest deduction on new equity. Unlike many jurisdictions where audit is optional for small entities, Cyprus imposes a statutory audit on essentially all companies, so clean ongoing bookkeeping directly affects both your audit cost and your tax position. Legarithm bridges the gap between everyday record-keeping and these EU-grade reporting standards.