The Republic of Cyprus has abolished the annual levy (€350 euro) starting from 2024

The Department of the Registrar of Companies and Intellectual Property announced that in accordance with the Companies (Amendment) Law 2024, L.25(I)/2024, which was published in the Official Gazette of the Republic on March 15, 2024, the annual levy (€350 euro) is abolished beginning in 2024. The annual levy for the years 2011 – 2023 remains in effect.

According to the Law 25(I)/2024, for those companies whose annual levy for 2024 has been paid already, the paid fees will be refunded.

The Department of Registrar of Companies and Intellectual Property (DRCIP) has clarified in a recent announcement that in this scenario, for companies that have already paid their annual levy for the year 2024, they will be refunded as follows:

• with the respective amount directly to their bank account used to make such contribution (if payment was made via JCC card payments) or
• to the bank account designated on the FIMAS payment authorisation form (if payment was made at the Cashier Desk of the DRCIP, following submission of the return of funds form “KE1” along with a copy of the payment invoice issued at the time of payment).

The objective for this decision is to give further support to businesses throughout Cyprus, and it is expected to encourage economic activity, increase employment, and contribute to the expansion of the Cypriot economy. Additionally, the initiative to abolish the annual levy is expected to have a favourable influence on Cyprus companies strike-off rate. Failure to pay the tax was a regular reason for companies to be removed from the register. With this obligation abolished, businesses may focus on their activities without fear of being deregistered for failure to pay the annual levy.

According to lawmakers, this decision is plausible, because this tax was implemented as part of the essential economic measures, and according to government authorities, the period of the relevant memorandum has expired, allowing for the abolition of the respective charge.

To summarise, the elimination of the annual levy is an important step forward for Cyprus, demonstrating its commitment to supporting businesses and promoting economic development. Cyprus hopes to establish itself as a top destination for entrepreneurs and investors looking for new opportunities by improving regulatory requirements and lowering administrative costs.

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