As from 2021, the Committee of the Union of Cyprus Municipalities decided on the adoption of a uniform policy for the imposition of the annual professional license fee to legal entities who carry on any business, trade or profession within each municipality’s limits.
Legal entities are classified into the below categories and the fee that will be levied to each category of legal entity is as follows:
- Active legal entities that are part of a group of companies (EUR150);
- Active legal entities that are not part of a group of companies (EUR250);
- Dormant legal entities (No fee is payable);
A confirmation must be submitted to the municipality by the entity’s accountant/auditor, providing information for the entity’s group structure and shareholding percentages.
A dormant company is considered a company that has no income or activities and maintains a cash balance equal to its share capital. A dormant company must submit certain information to the respective municipality to verify its dormant status.
Exemptions apply in case a legal entity is under a compulsory or voluntary liquidation or under strike off procedure.
How can we help?
We are at your disposal to discuss the effect of the above provisions to your corporate structure and arragements.