articles | 11 March 2024 | Elias Neocleous & Co LLC

Abolition of Annual Levy

Companies established prior to 2024 were obligated to pay an annual corporate levy by June of every year amounting to EUR350 according to section 391 of the Companies Law, as introduced during the year 2011 with the Amendment Law 117(I)/2011.

On 21 February 2024 the President of the Republic of Cyprus, announced the decision of the Council of Ministers to abolish this levy which was payable by all companies registered in Cyprus to the Registrar of Companies. On 29 February 2024, the House of Representatives passed the Companies (Amendment) Law of 2024, deleting section 391 of the main legislation enacted in 2011 imposing the annual corporate levy. This deletion is effective for the year 2024 and onward. The entities that have already paid the Annual Levy for 2024 will receive a refund.

 Companies incorporated in or before 2023 that have not yet paid the Annual Levy for any year from 2011 to 2023 will have to proceed with its payment, including applicable penalties.

 The abolishment of the annual levy is part of broader economic measures to be taken by Cyprus to support entrepreneurship and investment by reducing business costs, thus encouraging both local and international businesses to establish and operate in Cyprus.

For any further information, please reach out to your usual contact at Elias Neocleous & Co LLC.

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