Frequently Asked Questions

A business may be required to register for VAT in Cyprus if it exceeds the applicable registration thresholds or carries out certain taxable activities.

The main registration thresholds include:

  • €15,600 for taxable supplies made in Cyprus over any consecutive 12-month period.
  • €15,600 for expected taxable supplies in the following 30 days.
  • €10,251.61 for acquisition of goods from other EU Member States.
  • No threshold for businesses receiving services from abroad that are subject to the reverse charge.
  • No threshold for businesses supplying certain services to VAT-registered businesses in other EU Member States.

If you are unsure whether your business must register, we can assess your circumstances and assist with the entire registration process.

Employers with employees working in Cyprus are generally required to:

  • Register as an employer with the Social Insurance Services.
  • Register for PAYE with the Cyprus Tax Department.
  • Register employees with the relevant authorities.
  • Calculate salaries, PAYE tax and Social Insurance contributions.
  • Calculate and remit other statutory contributions, where applicable, including GESY, Redundancy Fund, Social Cohesion Fund and Industrial Training Fund.
  • Issue monthly payslips.
  • Submit the required monthly and annual payroll reports.
  • Remit payroll taxes and contributions within the prescribed deadlines.

We can manage the entire payroll process, ensuring compliance with Cyprus employment and tax legislation.

VAT returns in Cyprus are generally submitted quarterly, with each business allocated a specific VAT period by the Cyprus Tax Department.

VAT returns and any VAT payable must generally be submitted and paid by the 10th day of the second month following the end of the VAT period.

Where applicable, businesses may also be required to submit:

  • VIES declarations for intra-EU supplies of services and goods.
  • Intrastat declarations for arrivals and/or dispatches of goods within the EU once the applicable reporting thresholds are exceeded.

We can prepare and submit all required indirect tax filings on your behalf.

Yes. Balancium supports international businesses establishing or operating in Cyprus.

Our services include:

  • Accounting and bookkeeping
  • Payroll administration
  • Tax, VAT and employer registrations
  • Tax compliance
  • Corporate Administration
  • Ongoing statutory compliance

Whether you are setting up a Cyprus company, employing staff locally or expanding your international operations, we can help you meet your local compliance obligations efficiently.

Yes. We support overseas employers engaging employees in Cyprus, whether through a local Cyprus entity or other employment arrangements, subject to the applicable legal and tax requirements.

Our payroll services include:

  • Employer registrations
  • Employee registrations
  • Monthly payroll processing
  • PAYE and Social Insurance compliance
  • Preparation of payslips
  • Monthly and annual employer reporting
  • Liaison with the relevant Cyprus authorities

Whether you require payroll support for a single employee or a larger workforce, we can provide a reliable and compliant payroll solution tailored to your business.