Business premises of a Cyprus Limited

The establishment of adequate business premises is inevitable. This business premises requirement is in principle a prerequisite for tax recognition in other European countries.

This regulation applies not only to legal entities in Cyprus, but to all companies wishing to operate within the European Union.

The case law in practice

The Republic of Cyprus does not require a so-called “appropriate business establishment” in all cases. Therefore, if you plan to do business only within Cyprus, you may choose not to establish a permanent establishment.

The opposite is required if a Cypriot company plans to do business within the EU. In this case, the following applies:

‘No permanent establishment, no tax recognition in EU countries.’

Example – A Cypriot company issues an invoice to a customer in another European country. If the company Cyprus company does not have an “appropriate permanent establishment” at the time of invoicing, the customer’s expenses abroad will generally not be recognised for tax purposes. As a result, the client cannot deduct these business expenses for tax purposes. A Cypriot company without a proper permanent establishment (keyword: “shell company”) simply does not exist for the tax authorities in other EU countries. Right or wrong – these are the facts.

The implementation in practice
How does a Cypriot company establish appropriate business premises?

Setting up and presenting “adequate business premises” starts first with renting a suitable space in Cyprus. All that is required is simple furniture and some technical equipment.

Business premises for a Cyprus Limited/Holding company

Your business in Cyprus is a trading company, a holding company, a consulting firm or a company providing services. In this case you will need at least one separate lockable room with a telephone connection, your own internet connection and a desk. The monthly rental costs are between EUR 250 and 350, which can be deducted as an expense for tax purposes in Cyprus.

Business premises for production companies in Cyprus

Companies producing or trading goods do not necessarily have to have their own warehouse or production facility on site, as long as this is justifiable from a logistical point of view. In this case, too, a simple commercial unit with appropriate equipment is sufficient.

We take care of your business premises in Cyprus

As you can see, setting up “adequate business premises” in Cyprus is easy and quick to accomplish and does not even pose a major financial problem. We are happy to support you in this process.

In a first step we advise you about the recommended size and equipment of your premises. We will also support you in finding and renting a suitable space, if you wish.

Next, we will be happy to assist you in setting up your premises, registering your telephone, internet connections and providing the appropriate signage/display for your commercial unit.

Hire staff in Cyprus
Do you intend to employ staff in Cyprus?

We have an extensive database of suitable and multilingual people.

The wage costs in Cyprus are relatively low. You can hire a part-time employee from around EUR 250/m and a full-time employee earns around EUR 900/m.

Information and multilingual advice

Do you have any questions, requests or would you like a written offer? We are gladly at your disposal.