I’m planning to set up a Cyprus Ltd company and am comparing accounting and formation providers.

Dear CYAUSE,

I’m planning to set up a Cyprus Ltd company and am comparing accounting and formation providers. I will be the sole director and shareholder, and the company will have low activity — a few international invoices per month, no employees, and no physical office or local clients.

I am a tax resident of Spain and will not take a salary. Instead, I plan to take dividends, which I’ll declare annually in Spain. The company will receive income related to wellness consultancy, professional massage / breathwork and later including products services online. I plan to open a Wise or Revolut Business account myself and do not require a local bank.

Could you kindly provide a quote and breakdown for:

• Company formation

• Accounting (annual or monthly options)

• Auditing

• Annual return filing

• Optional VAT registration

• Secretary and registered address fees (and if I can act as my own secretary)

• Any additional or hidden costs

• Dividend declaration services

• UBO Registry (optional)

I’d appreciate a light package suitable for a startup with modest initial income. I’m ready to proceed soon, and will provide KYC documentation and proof of address as soon as my new rental agreement is finalised.

Warm regards,

Dear Client,

Good day and thank you for your email.

Please find below a breakdown of the requested services, related fees, and timeframes:

1) CY Company formation (Ltd): Euro 900 + disbursements + VAT, one off. With the speed up process the company will be registered within approximately 2 weeks from the date of submitting the application. This will take place once we gather and conduct our KYC checks, documentation and screenings. Brochure attached with useful information.

• Filing of Memorandum and Articles of Association in English - Euro 120,00 plus VAT plus disbursements.
• Ultimate Beneficial Owner Declaration: Euro 300,00 + VAT initially (for the first submission) and then once the government announces an annual update of the UBOs, we charge Euro 100,00   + VAT.

2) Fiduciary Services: Euro 1800,00 + VAT, annual recurring fees (includes: nominee director, company secretary and registered office). If you split them into director, secretary etc, its Euro 800,00 per position per year. You can act as a secretary however, bear in mind that if you will not be a Cy Tax Resident then you won't be benefiting from the CY tax advantages offered. In order for the company to be treated as a CY Tax Resident, the majority of directors must be CY Tax Residents.

 3) Optional: Bank account set up: Euro 950,00 + VAT (but this is something you can do on your own whenever you are in Cyprus however, it is a very time-consuming and tiresome exercise though), one off. Brochure attached with useful information.

 4) Accounting, Payroll, Audit and Tax: Annual recurring fees. Subject to volume, complexity and ease of communication. Please refer to our website for an indicative annual cost, based on the company's needs. A more accurate offer will be provided at a later stage, once we discuss your tax status and the relevant needs. You can send us a zip file including these types of transactions in order for us to get an idea and know how much to charge and what to expect.

 5) Non – domicile application: Euro 800,00 + VAT, one off. Kindly note that in order to be eligible for this, you should be registered as an employee under your Cyprus Company (Ltd). The Non-Dom Application takes approximately 1-2 months to be examined. Brochure attached with useful information.

6) Residence permit: Euro 600,00 + VAT (yellow slip), one off . This is mandatory to be able to live here for more than 90 days per annum and for employment purposes. This takes approximately 1-2 weeks to be examined.

7) Tax Residency Certificate: Euro 600,00 +VAT, one off. This takes approximately 1,5 months to be issued.  Please  bear into account that you cannot apply for 2025 in 2025. You can apply for the 2025 Tax Residency from January 2026 onwards. You will be requested to show rental agreements, tickets of entry to Cy, bank statements showing movements in Cy, etc. 

 8) Tax registration: Euro 150,00 + VAT - one-off fee.

 9) Registration of the Cyprus company as an employer : Euro 150,00  + VAT  - one-off fee.

 10) Registration of employees under the Cyprus company: Euro 150,00 + VAT - per registration, one off fee. 

 11) Registration of the Cyprus company with the VAT : Euro 250 + VAT, one-off fee. 

In order to be a Cyprus taxed resident one of the following requirements must be fulfilled: 

a) You have to spend at least 60 days in Cyprus and no more than 183 days in any other specific country (during a calendar year);

OR

b) You have to spend at least 183 days in Cyprus (during a calendar year).

 You can find useful information related to tax and non-dom status on our YouTube channel here: Cyprus Tax & Relocation - YouTube and via our website

 Documents: Please find attached the brochures including all required documents. 

Please let me know if the above is clear, if you need any clarifications, and if you wish to proceed with a consultation call. Once we conclude on the necessary services we will prepare a tailored made package for you.

If you wish we can proceed with a video call to better facilitate your inquiry. Just let us know your availability and we will arrange it. 

 We are looking forward to providing our services to you.

Remaining at your disposal.

Dear Fivi,

Thank you again for your thorough reply and documentation. I’d like to move forward with a light company setup and just want to clarify a few final points before doing so.

To give you the full picture:

• I am a Cypriot citizen (dual nationality with the UK), and I hold both a Cypriot passport and ID card

• I will be the sole director and shareholder

• I will act as my own secretary

• I will not be tax resident in Cyprus, as I live in Spain more than 183 days per year

• The company will have no physical office, no employees, and no local clients in Cyprus

• All invoices are to international clients, with low activity volume

• I will only withdraw dividends, which I will declare in Spain under my personal tax residency

• I will open the business account myself via Revolut or Wise

My structure is very lean and transparent:

• I am not employing staff

• I am not issuing invoices locally

• I am not attempting to avoid tax, as I’ll be declaring dividends properly in Spain

Given this setup, I’d like to confirm the following:

1. Will the company still be considered a Cyprus tax resident and benefit from the 12.5% corporate tax rate without appointing a Cyprus-resident director? If scrutinised by an Overseas Income Tax Office it will not be consider Cyprus tax resident but most likely as resident of the jurisdiction you reside (spain for instance).

2. If a Cyprus-resident director is required to retain that status:

• What is the annual cost for appointing a local nominee director? 1,850 + VAT per annum

• What are the practical implications if I do not appoint one? You may need to sign papers in Cyprus; you will have to give authorisations to persons; generally it is not advicable for Euro 2k per annum not to appoint a local directors and risk of having tax residency and practical issues in Cyprus.

• Would the company still be taxed in Cyprus, or could Spain attempt to claim taxing rights under management and control rules? Yes - if investigated rest assure Spain will consider it Spanish resident and tax it accordingly.

3. Please provide an updated quote excluding:

• Nominee director - 1,800 + VAT

• Secretary services - Ad Hoc - Small fees per service if neded, usually there are no secretarial services needed other than roudimentary submissions that are charged Euro 150 + VAT per submission.)

• Bank account support - Bank Account opening 950 +VAT

• Residency or non-dom applications - Euro 800 + VAT

Once I have confirmation on the above, I’ll be ready to begin the KYC process and move forward with company formation.

Warm regards,

Hi Client,

Our response in blue (see above).

Note: The nominee fees represent the risk we take for our clients against the local authorities; VAT, Tax , Litigation. The rest are standardised irrespective of volume with the exception of accounting and audit.

Thank you.