Cost of Setting Up a Company in Cyprus

Published on October 2, 2025 and written by Cyril Jarnias

Cyprus has become a popular destination for international entrepreneurs and investors looking to establish a presence in Europe. With its favorable tax regime and strategic location, the Mediterranean island offers a conducive environment for business development. However, before embarking on this venture, it’s crucial to fully understand the costs associated with setting up a Cypriot company. In this article, we’ll examine in detail the various financial aspects to consider and provide tips to optimize your investment.

Registration Fees: First Step of Your Cypriot Adventure

Setting up a company in Cyprus begins with its official registration with the competent authorities. This step involves several fees that are important to budget for from the start.

The company name reservation cost is the first expense to anticipate. It typically amounts to about €40. This fee allows for checking the availability of your chosen name and reserving it for a specified period.

Next come the actual registration fees. These vary depending on your company’s share capital. For a standard limited liability company (LLC) with €1,000 share capital, expect about €150 in registration fees. These fees increase proportionally with the declared share capital.

Preparing and filing the incorporation documents also represents a significant cost. If you hire a lawyer or specialized firm to assist with this process, budget between €1,000 and €2,000. This amount may vary depending on your structure’s complexity and any additional services you might require.

Don’t forget document translation and certification fees. If your original documents aren’t in Greek or English, you’ll need to have them translated by a certified translator. The cost can range from €50 to €100 per page, depending on the source language and document complexity.

Compliance Costs: Ensuring Your Business’s Longevity

Once your company is registered, it’s essential to remain compliant with Cypriot legislation. These recurring costs need to be factored into your annual budget.

Bookkeeping and annual audit are mandatory for all Cypriot companies. Fees for a qualified accountant can range between €1,000 and €3,000 per year, depending on your business’s size and complexity. The annual audit itself can cost between €1,500 and €5,000, or more for larger companies.

Preparing and filing tax returns represents another significant expense item. Budget between €500 and €1,500 per year for this service, which typically includes corporate tax returns and quarterly VAT declarations.

Maintaining a company secretary, mandatory in Cyprus, generates annual fees of approximately €300 to €500. This professional is responsible for keeping company records up to date and ensuring compliance with legal obligations.

Don’t forget the annual business license renewal fee, which amounts to about €350. This license is essential to keep your company operational.

Initial Investment: Laying Solid Foundations for Your Company

Beyond administrative fees, setting up a company in Cyprus requires an initial investment to start your operations.

The minimum share capital required for an LLC in Cyprus is symbolic, set at €1. However, it’s recommended to inject more substantial capital to give credibility to your business and facilitate bank account opening. Share capital of €5,000 to €10,000 is generally considered reasonable for a small structure.

Opening a bank account in Cyprus can incur variable fees depending on the chosen institution. Budget between €200 and €500 for opening fees, plus monthly maintenance fees (approximately €20 to €50 per month).

Office rental, if necessary, represents a significant investment. In Nicosia, Cyprus’s main business center, rents for quality offices range between €10 and €20 per square meter per month. For a 50 m² space, budget between €500 and €1,000 monthly.

Office equipment and furniture also constitute an expense item not to be overlooked. A budget of €3,000 to €5,000 generally allows for properly equipping a small office to start.

Operational Expenses: Managing Your Business’s Daily Operations

Once your Cypriot company is established, several recurring expenses need to be anticipated to ensure its proper daily functioning.

Salaries and social charges often represent the most significant expense item. In Cyprus, the minimum wage is approximately €940 per month for full-time employment. Employer social charges amount to about 8.3% of gross salary. For a qualified manager, budget a monthly salary between €2,000 and €4,000, or more depending on the sector and experience.

Telecommunications and internet fees are essential for any modern business. A professional high-speed broadband package with landline typically costs between €50 and €100 per month.

Professional insurance, although not mandatory for all activities, is highly recommended. Professional liability insurance can cost between €500 and €1,500 per year, depending on your activity’s nature and turnover.

Marketing and business development fees vary considerably depending on your strategy. A minimum budget of €500 to €1,000 per month is recommended to maintain an online presence and conduct basic prospecting activities.

Business travel, particularly for companies working internationally, can represent a significant cost. Budget an annual amount according to your specific needs, taking into account transportation, accommodation, and meal expenses.

Cost Reduction Strategies: Optimizing Your Investment in Cyprus

Although creating and managing a company in Cyprus involves unavoidable costs, several strategies can help you optimize your investment.

Opt for virtual office services initially, rather than renting physical offices. Many business centers in Cyprus offer virtual office services starting from €100 per month, including a professional address and mail management.

Outsource certain non-essential functions. For example, instead of hiring a full-time accountant, use an external accounting firm for bookkeeping and tax declarations. This approach can save you several thousand euros per year.

Take advantage of Cypriot tax incentives. Cyprus offers one of the lowest corporate tax rates in the European Union at 12.5%. Furthermore, the Cypriot tax system provides numerous exemptions, particularly on dividends and capital gains. Wise tax planning can enable substantial savings.

Invest in technology to automate certain processes and reduce labor costs. Project management tools, online accounting software, or CRM systems can increase your efficiency while reducing long-term expenses.

Negotiate with your suppliers. Don’t hesitate to compare offers and negotiate rates for your banking, insurance, or telecommunications services. Many providers offer special deals for new businesses.

Conclusion: A Calculated Investment for a Promising Future

Setting up a company in Cyprus represents a significant investment, but one that’s potentially very profitable for savvy entrepreneurs. By understanding and anticipating the various associated costs, from initial registration to ongoing operational expenses, you can effectively plan your project and maximize your chances of success.

Cyprus offers an attractive business environment, with considerable tax advantages and a strategic position at the crossroads of Europe, Africa, and the Middle East. Although initial costs might seem substantial, they’re generally lower than many other European jurisdictions, while offering comparable or even superior benefits.

The key to success lies in meticulous planning, rigorous cost management, and a thorough understanding of the local market and the opportunities it offers. By adopting a strategic approach and leveraging available resources, you can transform your initial investment into a thriving business on Cypriot soil.