What can you write off in a Cyprus Limited?

[Hydrox]

Hey Tax Optimizers,
I've followed through on my decision and relocated to Cyprus ”” got myself an apartment, set up a Cyprus Limited company, opened bank accounts, and I'm spending several months a year here. So far, everything's going smoothly.

Since accounting can be quite expensive, my plan is to handle the bookkeeping myself (I've got a lot of experience in it), and then hand things over to a licensed accountant for the audits and tax filings. Does anyone have experience with this approach?

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The main reason for this post is to ask what kind of expenses you can write off through a Cyprus Limited.

I assume a dedicated home office room in your apartment should be fine ”” but has anyone successfully deducted more than that? For example, can you go as far as writing off a larger share of the apartment costs, or even the whole thing? I'd love to hear from anyone who has spoken to solid knowledgeable Cyprus accountants and knows what tends to get accepted here.

Also, what about other write-offs ”” like a car, business-related travel, or private health insurance? And when it comes to audits, what kind of proof or documentation do you need to have ready?

Let me know

 

[OffshoreDude]

Hydrox said:
Since accounting can be quite expensive, my plan is to handle the bookkeeping myself (I've got a lot of experience in it), and then hand things over to a licensed accountant for the audits and tax filings.
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Are you aware that your Cyprus LTD is exempt from submitting full audits, if your annual turnover is below 200.000 Euros? If so, you don't need an audit; an annual review by an accountant would be enough, and that is much cheaper than a full audit!

Hydrox said:
The main reason for this post is to ask what kind of expenses you can write off through a Cyprus Limited.
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I have the impression that troughout your post you seem to confuse / mix up deductions with write-offs. However, these are two differen terms and concepts in taxation. I assume, what you actually meant are deductions to reduce taxable profits.

Hydrox said:
I assume a dedicated home office room in your apartment should be fine ”” but has anyone successfully deducted more than that? For example, can you go as far as writing off a larger share of the apartment costs, or even the whole thing?
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On some website I read that a director of a Cyprus LTD who puts his apartment as registered address, can deduct 30% of the rental costs and utility bills, but couldn't find that confirmed elsewhere, so it may be incorrect information.

Hydrox said:
I'd love to hear from anyone who has spoken to solid knowledgeable Cyprus accountants and knows what tends to get accepted here.
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To me and certainly other Cyprus business owners this is also of interest, so I'm wonderin why this thread doesn't get the attention it deserves. Maybe it is because you used the misleading term "write-offs" in its title, while actually you were meaning general business deductions. Maybe this scares people off, as write-offs are a more complex concept than simple deductions.

By the way, there is also another thread on the topic on this forum ("Cyprus Business Expenses").

 

[daniels27]

OffshoreDude said:
I have the impression that troughout your post you seem to confuse / mix up deductions with write-offs. However, these are two differen terms and concepts in taxation. I assume, what you actually meant are deductions to reduce taxable profits.
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Maybe some language issue:
Abziehen / absetzen etc. => deduct (business expenses are deductible and lower the profit)
Abschreiben => write-off (the company had to write-off a lot of their investment)

 

[daniels27]

Also this page states:

Can I deduct my home office expenses if I work remotely?
If you're self-employed, you can deduct reasonable home office expenses proportionate to the space used for business. However, employees working remotely generally cannot deduct home office expenses under Cyprus tax law.
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The tax law unforutnately is only available in Greece.

 

[cyprus123]

Accounting services in Cyprus are usually very affordable compared to other jurisdictions, it can get as low as 150 EUR per month. To spend months training with a local accounting software and dig into the local tax rules is not worth the "savings" in my opinion.

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https://virtualzonegeorgia.com/

 

[OffshoreDude]

daniels27 said:
Also this page states:
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And what is the situation, if a founder of his own Cyprus company employs himself as the only employee, but has no office space rented, because he solely works from his apartment, so technically that is not "working remotely", but in his company's "office", which is a room or work corner with a desk in his apartment, where he also lives?

 

[daniels27]

OffshoreDude said:
And what is the situation, if a founder of his own Cyprus company employs himself as the only employee, but has no office space rented, because he solely works from his apartment, so technically that is not "working remotely", but in his company's "office", which is a room or work corner with a desk in his apartment, where he also lives?
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You can either translate the Greek text I sent you or you call the tax guys that will be auditing you, explain then the situation and ask what they would accept.

All those related party transactions are dangerous and I would dearly avoid it. Taxes are low enough that you should not have to bother about potential 6000 EUR deductions per year.

 

[Hydrox]

OffshoreDude said:
Are you aware that your Cyprus LTD is exempt from submitting full audits, if your annual turnover is below 200.000 Euros? If so, you don't need an audit; an annual review by an accountant would be enough, and that is much cheaper than a full audit!
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Since turnover means revenue, i should be over that. Is there a way to know which person is performing your audit?

daniels27 said:
Also this page states:


The tax law unforutnately is only available in Greece.
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Thank you I´ve let ChatGPT study the tax document and then asked it what is deductable in my case and whats not. There seems to be little to no difference when i compare it with deductions in germany

 

[Aetherial]

Hydrox said:
Since turnover means revenue, i should be over that. Is there a way to know which person is performing your audit?

Thank you I´ve let ChatGPT study the tax document and then asked it what is deductable in my case and whats not. There seems to be little to no difference when i compare it with deductions in germany
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I hope you didn't actually use ChatGPT to request these kinds of legal info and actually consider them reliable

 

[OffshoreDude]

Hydrox said:
Since turnover means revenue, i should be over that.
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I'm not sure if it is turnover or profits, so please verify that yourself, you should find information when you google for "Cyprus Audit relief small companies 200.000" or so.

Hydrox said:
Is there a way to know which person is performing your audit?
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I'm not even in Cyprus yet (but I do plan to go there within the next 2-3 years).

Hydrox said:
Thank you I´ve let ChatGPT study the tax document and then asked it
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I strongly advise to use ChatGPT and relying on it for topics such as tax matters. The amount of bull*s**t I encountered with AI "answers" with regards to it was ridiculous.

Hydrox said:
what is deductable in my case and whats not. There seems to be little to no difference when i compare it with deductions in germany
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Yes, seems so, indeed. But in Cyprus you are not even allowed to deduct your starting costs like fees for company incorporation / formation, government fees for doing so etc., if I researched that correctly.

 

[daniels27]

OffshoreDude said:
I strongly advise to use ChatGPT and relying on it for topics such as tax matters. The amount of bull*s**t I encountered with AI "answers" with regards to it was ridiculous.
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Do you mean @GPT?

 

[daniels27]

Hydrox said:
Since turnover means revenue, i should be over that. Is there a way to know which person is performing your audit?
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You need to find an auditor yourself and pay him.

 

[OffshoreDude]

Yes, and their fees would most likely also depend on the amount of transactions the business has created in its bank account.

What is a price range for an audit in your experience, @daniels27?

 

[daniels27]

OffshoreDude said:
Yes, and their fees would most likely also depend on the amount of transactions the business has created in its bank account.

What is a price range for an audit in your experience, @daniels27?
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Depends on the country. But I would calculate minimum 500 EUR.

About $80 if you believe this lad:
[COLOR=#ff9e80] N [/COLOR]

Post in thread 'Estonia taxing undistributed profits in 2026 where people will go to now?'​

Jan 7, 2025

daniels27 said:
The costs in those countries are above $4000 per year. What is your annual profit that you are hiding?
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Hiding is not the appropriate term if you are doing accounting and 3rd party audits

4K per year too excecive(higher the cost yearly, higher the country is regulated and lots of red tape) there should be more exotic options well under $150 per year similiar to US LLC which is 60 state annual report cost+ around 70-80 agent cost

• Nw1

Last edited: Apr 23, 2025

 

[lory]

In my experience, bookkeeping and accounting in Cyprus aren't particularly expensive. It's definitely worth consulting a professional to help with the questions you have, and feel free to share your findings here in the thread.

I don't believe Cyprus is overly strict when it comes to reviewing tax filings, at least that hasn't been my impression during the many years I've had a company based there.

 

[OffshoreDude]

OffshoreDude said:
I strongly advise to use ChatGPT and relying on it for topics such as tax matters. The amount of bull*s**t I encountered with AI "answers" with regards to it was rididiculous.
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What I actually wanted to write was "strongly advise against ..", of course.

 

[OffshoreDude]

lory said:
In my experience, bookkeeping and accounting in Cyprus aren't particularly expensive.
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Do you recommend this for things like registering for VAT, also? As I would be reluctant to pay some tax professional 500,- Euros or so, just to do something easy like that, what I could do myself online on some government website in 10 minutes ..

 

[GPT]

lory said:
In my experience, bookkeeping and accounting in Cyprus aren't particularly expensive. It's definitely worth consulting a professional to help with the questions you have, and feel free to share your findings here in the thread.

I don't believe Cyprus is overly strict when it comes to reviewing tax filings, at least that hasn't been my impression during the many years I've had a company based there.
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I tend to agree with you. In 11 years time ive only had two times an instance where I got annoyed by the attention. All the other years no issues. Just make sure that your payroll is flawless (if you run one) including all the contributions.

 

[myshufflemix]

I paid €3,000 / year for accounting and tax filing for a small sized company in Cyprus back in 2020.

 

[GPT]

Hydrox said:
Hey Tax Optimizers,
I've followed through on my decision and relocated to Cyprus ”” got myself an apartment, set up a Cyprus Limited company, opened bank accounts, and I'm spending several months a year here. So far, everything's going smoothly.

Since accounting can be quite expensive, my plan is to handle the bookkeeping myself (I've got a lot of experience in it), and then hand things over to a licensed accountant for the audits and tax filings. Does anyone have experience with this approach?

---

The main reason for this post is to ask what kind of expenses you can write off through a Cyprus Limited.

I assume a dedicated home office room in your apartment should be fine ”” but has anyone successfully deducted more than that? For example, can you go as far as writing off a larger share of the apartment costs, or even the whole thing? I'd love to hear from anyone who has spoken to solid knowledgeable Cyprus accountants and knows what tends to get accepted here.

Also, what about other write-offs ”” like a car, business-related travel, or private health insurance? And when it comes to audits, what kind of proof or documentation do you need to have ready?

Let me know
Click to expand...

It depends on the turnover / profit. I even managed to write off foreign traffic fines, entertainment in full and many other things which you can officially not or only partly write off. It pretty much depends on your turnover.