How much money your Cyprus company cost you on a yearly basis?

[LisaSimpson]

I would like to know the maintenance costs of a Cyprus company on a yearly basis. How much cost the audit, the virtual office, the secretary...?
thank you.

 

[James Turner]

This will depend upon how active the company is and how much work is involved in the accounting and audit function. It is impossible to say without more information.

 

[avalanche]

This will depend upon how active the company is and how much work is involved in the accounting and audit function. It is impossible to say without more information.

Multiple accounting companies told me it would cost 1,200 EUR annually for mandatory audit + like 2,000 EUR for accounting. And thats for 50 transactions a year

It does not include any gov fees + virtual office which, in my opinion, is crazy unless you are running 1m EUR/y business.

 

[Mark Rucken]

3300 EUR per year for me. Accounting, Audit, Registered address, secretary and government fee included. I have around 5 invoices a month.

 

[James Turner]

This sounds about right to be honest. I personally find Cyprus quite an expensive location generally.

 

[avalanche]

This sounds about right to be honest. I personally find Cyprus quite an expensive location generally.

What do you think can be a cheaper option for a software IP company?

 

[James Turner]

The company could literally be created anywhere in the world. What is your preference?

 

[avalanche]

The company could literally be created anywhere in the world. What is your preference?

Looking for a setup max $3k, up to $2k / year maintenance, up to 15% total tax on receiving royalties from Europe for the use of the software (IP). Banking should be able to fit in $200k/year income.

 

[avalanche]

3300 EUR per year for me. Accounting, Audit, Registered address, secretary and government fee included. I have around 5 invoices a month.

What was the cost of setup?

 

[Mark Rucken]

What was the cost of setup?

2800 for company formation, Nominee director and VAT number.

 

[JimBeam]

yearly:

€2.200 company renewal (nominees, registered address, secretary and government fee included)
~ €2.000 accounting and auditing (5-10 invoices/month)
~ €1.000 vat returns and vies
€600 bank account maintenance (€50/month)

Comes down to about 5-6k/year, plus 13.75% tax (12.5% tax + extra 1%)

 

[JohnLocke]

It's not that expensive compared to what setup get, that's at least what I considered. I have been looking into many setups and even though many seem to fight against, then Cyprus still has been the savest country to operate in for me for years.

 

[John Andrews]

yearly:

€2.200 company renewal (nominees, registered address, secretary and government fee included)
~ €2.000 accounting and auditing (5-10 invoices/month)
~ €1.000 vat returns and vies
€600 bank account maintenance (€50/month)

Comes down to about 5-6k/year, plus 13.75% tax (12.5% tax + extra 1%)

what's the extra 1% for?

 

[JimBeam]

As far as I know, it's a "penalty for not doing accounting/auditing" every 6 months. I would like some more input on this if someone else has more info.

 

[Mark Rucken]

As far as I know, it's a "penalty for not doing accounting/auditing" every 6 months. I would like some more input on this if someone else has more info.

That is a complete BS. There is no such thing in Cyprus, someone is trying to rip you off. My Cyprus lawyer is not charging for VAT/VIES return for example, it is free ... I think realistic annual maintenance of CY company is some EUR 3500, depending on the amount of work accountants have + bank fees for account maintenance.

 

[JimBeam]

Yes, my lawyer is clearly more expensive (and I'm aware of that).

I'd like to change it but at this point it's not that easy but maybe will be pretty soon.

 

[GrumpyMess]

It's not that expensive compared to what setup get, that's at least what I considered. I have been looking into many setups and even though many seem to fight against, then Cyprus still has been the savest country to operate in for me for years.

Cyprus is ok if you want a clear EU setup with EU banking. But it's still an expensive setup, you pay a half simply for nothing. I'm afraid to imagine what the cost will be for a regular trading company with 100 invoices monthly.

what's the extra 1% for?

Cypriot company must correctly estimate expected annual income and pay tax in advance for it. As a rule, accountants are too lazy to do this and 1% is a fine for not doing this estimation. Simply this is a regular hidden tax.

 

[avalanche]

Cyprus is ok if you want a clear EU setup with EU banking. But it's still an expensive setup, you pay a half simply for nothing.

What would you recommend then as alternative?

 

[GrumpyMess]

What would you recommend then as alternative?

a lot depends on your circumstances, income, residency, how much invoices per month you have etc

 

[celizo]

Hi, do you have recommendations about good lawyers in order to open a non-resident company in Cyprus (PM if needed)?