Introduction:

For more than 12 years since its inception in 2011 and pursuant to Article 391 of the Companies Law Chapter 113, the €350- Annual Levy fee imposed on Cyprus Companies is being scrapped.

This decision made by the Cabinet within February 2024, to eliminate the Annual Levy, represents a significant stride towards easing the financial strain on businesses, particularly amidst challenging economic circumstances.

About the Annual Levy:

The Annual Lecy was Introduced in 2011 as part of measures to consolidate finances following the economic downturn, the €350 Annual Levy fee faced backlash from the business community, which criticized its unfairness and disproportionate impact on small and medium-sized enterprises (SMEs).

Over the years, the Annual Levy became a symbol of burdensome bureaucracy, hindering the growth and competitiveness of Cyprus Companies.

Importance of the Elimination:

The elimination of the €350 Annual Levy fee is poised to deliver substantial advantages to Start-Up Cypriot Companies and Businesses, including:

i. Lower Financial Burden:

By removing the Annual Levy, Companies will have more resources to allocate towards growth, innovation, and employment. This newfound financial flexibility can pave the way for increased investment in research and development, expansion into new markets, and hiring additional staff, thereby stimulating economic growth and prosperity.

ii. Enhanced Business Environment:

The abolition of the Annual Levy contributes to an improved business hub in Cyprus, rendering it more appealing for both local and foreign investments. By alleviating one of the financial hurdles faced by businesses, Cyprus can position itself as a more attractive destination for entrepreneurs and investors seeking to establish or expand their operations. This, in turn, can lead to a more vibrant and dynamic business ecosystem, fostering innovation, collaboration, and economic resilience.

iii. Scale-Up the Competitiveness:

Reducing operational expenses enhances the competitiveness of businesses in both domestic and international markets. With reduced overhead expenses, Cypriot companies can offer products and services at more competitive prices, gaining an edge over their counterparts. Moreover, the savings generated from the elimination of the Annual Levy fee can be reinvested into strategic initiatives aimed at enhancing efficiency, quality, and customer satisfaction, further bolstering their competitive position in the global marketplace.

Conclusion:

Fundamental Aid for Start-up Businesses.

The elimination of the Annual Levy fee €350- marks a positive turn for businesses in Cyprus. This move is expected to stimulate economic activity, bolster job creation, and foster overall economic growth in Cyprus.

At Yiorkas Law, we offer tailored made Cyprus Company Incorporation services navigating the evolving business landscape adeptly, ensuring that your start-up company is set up for success from its foundations.

With comprehensive knowledge of local and EU regulations, our team of experts offers an A-Z assistance throughout your Cyprus Company Incorporation journey.

“There is Always a Better Way to Do it – Find it With us”

Opting for Yiorkas Law, transcends more than just establishing a Cyprus Company; it entails setting the stage for forthcoming success and expansion within a nurturing business ecosystem.