Annual Company Levy of €350 Abolished by the Cyprus Cabinet

On February 21, 2024, despite previous opposition from the Ministry of Finance, the Cyprus Cabinet decided to abolish the annual company levy of €350 imposed on Cyprus companies.

The Ministry of Finance pointed out that the abolition of the annual levy could create a potential loss of annual revenues amounting to €40 million budgeted for 2024, and suggested a gradual elimination based on turnover of the companies.

The annual levy fee of €350 was first introduced in 2011 as part of the fiscal consolidation measures.

Our view is that the abolishment of the annual levy will reduce the financial burden of especially SMEs by lowering operating costs.

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