Cyprus is listed as one of the most favorable destinations for entrepreneurs and international businesses to incorporate a company due to its robust legal framework, extensive network of double tax treaties, and a competitive corporate tax regime. However, remember that establishing a company is just the entry ticket; beyond that lies the actual complexities of financial commitment associated with mandatory compliance costs. If you navigate this journey unprepared, you may encounter significant "sticker shock".
In response, we have curated this publication, offering you a transparent and comprehensive breakdown of the annual accounting and audit fees you can expect in 2026. Understanding this will empower you to budget accurately and avoid unforeseen financial burden.
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The mandatory compliance triad
Every tax-resident entity in Cyprus is legally required to maintain three core functions to remain in good standing, namely:
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Accounting & bookkeeping: Must maintain well-documented, accurate financial records in compliance with Cypriot law and International Financial Reporting Standards (IFRS).
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Statutory audit: Must conduct an annual audit, preferably handled by a qualified Certified Public Accountant (CPA).
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Company secretary: To guarantee that the company meets its statutory obligations and filings on time.
Now, each of these three functions, being a different service, has a varying pricing spectrum, influenced primarily by the company's transactional complexity. For clarity, below is a detailed cost breakdown of these three functions.
1. Accounting & bookkeeping fees
Structured accounting and bookkeeping are the foundation of financial compliance. It typically involves recording all transactions, managing ledgers, preparing management accounts, and generating the trial balance necessary for the audit. As for the fees, these can be:
Low complexity (€800 - €1,500 per year)
Applies to a holding company with minimal banking activity (e.g., less than 25 transactions annually), no trading income, and no payroll. Standard services cover basic bookkeeping, bank reconciliations, and preparation of unaudited financial statements.
Medium complexity (€1,500 - €3,500 per year)
Ideal for a trading or service company with a moderate volume of transactions (e.g., 25-100 per month), a small number of employees (payroll processing), and requires VAT returns. These fees typically cover services, such as total bookkeeping, VAT compliance, payroll processing, and preparation of detailed financial statements.
High complexity (€3,500 - €7,000+ per year)
Usually opted for by a group financing company or a trading entity with high transaction volumes (100+ per month), complex transactions (loans, derivatives), or with involvement in specialized sectors. Specialized services within this pricing range include complex group consolidations, sophisticated tax advisory, and detailed management reporting.
Thus, if you want to estimate accounting costs in Cyprus, you must be clear about your expected monthly transaction volume to receive the most accurate quote for the required accounting services.
2. Statutory audit fees
The statutory audit is a legitimate, mandatory, and independent assessment of your company's financial statements. Its cost is directly influenced by the period of time that the auditor invests, mostly driven by risk and complexity.
Low complexity (€1,200 - €2,000)
A low complexity audit is usually straightforward and requires less substantive testing, making it ideal for simple holding companies or dormant entities with minimal assets and transactions.
Medium complexity (€2,000 - €4,500)
Here, the auditor has to invest more time as it involves testing revenue recognition, verifying payables and receivables, and assessing VAT and tax computations, making it suitable for active trading companies.
High complexity (€4,500 - €10,000+)
This spectrum requires a high level of audit expertise, often involving specialists and extensive procedures. Due to its extensive services and higher pricing, it is usually opted for by large trading groups, financial institutions, or companies with complex international structures.
While many accounting firms offer a bundled service, the audit fee is a separate, distinct cost. Furthermore, in Cyprus, your auditor must be independent from your company's activities.
3. Company secretary fees
Critical for corporate governance, company secretary fees is another most cost-effective component of bookkeeping fees.
Standard fee range: €400 - €900 per year
This typically covers:
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Preparing and filing of the Annual Return (HE32) with the Registrar of Companies.
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Maintaining the statutory registers (members, directors, etc.).
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Providing a registered office address (a legal requirement).
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Organizing and minuting annual general meetings.
Expect additional charges for extraordinary general meetings, share transfers, or changes to the company structure.
The "sticker shock" scenario - A case study
Despite being compliant, how can you still fall into a ‘Sticker shock' scenario? Let’s understand this with a hypothetical case:
Imagine forming a Cyprus company for €1,000. In its first year, the company primarily engaged in consulting services across Europe, with:
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An estimated transaction volume of 80 per month.
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2 employees (including the director).
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VAT registration.
So, the first-year compliance bill comes around:
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Accounting & VAT costs: €2,800
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Statutory audit fees: €3,500
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Company secretary fees: €600
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Total estimated cost: €6,900
Now, if you happen to have only budgeted for the initial corporation fee, this whopping €6,900 bill can be a shocking revelation. That is why maintaining transparency is essential right from the outset.
Additional mandatory costs to consider
Beyond the core triad, you also need to budget for the following recurring government fees:
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The annual levy to the Registrar of Companies is estimated at €350, payable to the respective authority, regardless of the company’s activity, and is a prerequisite for filing the Annual Return.
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VAT compliance: For a VAT-registered company (mandatory if turnover exceeds €15,600), expect annual fees of €300 to €600 for preparation and submission of quarterly VAT return.
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A professional certification fee of approximately €25 to €50, payable to the auditor for certification of the financial statements.
Summing up
This concludes that the "real cost" of a Cyprus company in 2026 is not just the incorporation fee. Business owners should realistically budget for full, mandatory compliance. While the ultimate figure is quite significant, it represents the cost of maintaining good standing in the EU jurisdiction, with assured access to banking services, and building a credible international business. Therefore, understand the cost drivers and seek upfront quotations for confident, strategic financial planning.
