Setting Up an Insurance Brokerage in Cyprus: Fees, Licensing and Compliance Requirements

(real client enquiry)

Dear Client,

Thank you for your email and the information provided.

In accordance with the information provided, please find below our response in red.

…………………………….……..Client email………………………………………………….

Dear CYAUSE,

Thank you for the detailed follow-up and confirmations. This has been very helpful and has allowed us to model the structure and costs with much greater accuracy.

To assist you on the accounting and audit scoping, I can confirm our actual activity levels for 2025 were as follows:

– 342 sales invoices and 456 bills

This equates to an average of approximately 28.5 invoices and 38 bills per month.

Based on this, I would be grateful if you could confirm or clarify the remaining points below so that we can finalise assumptions and proceed.

1. Accounting and audit fees

Based on the above transaction volumes, please confirm the expected annual accounting and audit fee range applicable to the Cyprus insurance brokerage.

- Based on the number of sales invoices and bills and assuming it is the first year of accounting and audit the fees can be in a range between 5,200-6,000 euros + VAT. In case of any increased fees, we will discuss it beforehand in order to reach an agreement in case of increase of workload.

2. Professional indemnity insurance

You indicated an estimated annual premium of €200–€500.

Please confirm:

– the minimum limit of indemnity assumed - Yes, the amount 2.5 million is assumed in this occasion

– whether this covers life insurance mediation and EU passporting - Confirmed

– whether IBIPs / international investment bonds are expressly included - This can be confirmed with the insurance company that can issue the PI cover.

3. Local qualified insurance person

You indicated an estimated cost of €1,200–€1,500 per month if a Cyprus insurance-qualified person is required.

Please confirm:

– whether this person must also be Cyprus tax resident

- The company must have at least one Cyprus tax resident as a Director and secretary. In case you have the qualifications, we can include you as a director along with the nominee director. If you want the CY insurance qualified person as a director, then it covers the physical presence in Cyprus and you can be the UBO of the company.

– whether their role is expected to be executive or supervisory only

- Their role will be just executive, the operations etc can be done by you and this person will allow your company to operate since he has the qualifications that the company and insurance brokers licence need.

– whether this cost is inclusive of all related social insurance or if those are additional

- If we include this person in the payroll system and register the company under Social Insurance Department, the expenses are separate.

1. Substance requirements

Please confirm whether ICCS will accept:

– a Cyprus tax-resident qualified insurance person, together with

– a nominee registered office and secretary, - As explained in point 3 

where the shareholder and main director are non-resident but approved based on foreign qualifications. - as explained above. The shareholder can be non-resident and the director but you must have one director who is CY tax resident.

2. IP / CRM income within the insurance entity

You confirmed that CRM / IP-related income may sit within the insurance entity provided income streams are clearly segregated. - Correct

Please confirm whether this structure is acceptable from the ICCS perspective at licensing stage, or whether it is preferable to introduce this only after licensing. - This will be acceptable after the licensing stage.

3. Capital adequacy

You confirmed the minimum paid-up capital requirement of €20,000 for an insurance broker.

Please confirm whether this must be fully paid prior to licence submission or prior to licence issuance. - It must be paid prior to the licence issuance in the company's bank account.

Once we have clarity on the above, we will be in a position to confirm structure, timeline, and next steps.

Many thanks again, and I look forward to your response.

Kind regards,