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Fiscal Representative in Cyprus

Fiscal Representative in Cyprus

A fiscal representative is an agent who can represent a company in a relationship with the tax authorities. In Cyprus, there is no requirement to appoint such a representative, however, using the services of one can be beneficial, especially for foreign companies and investors.

Below, we invite you to discover how a Cypriot fiscal representative can help and the services one can provide. You can rely on our Cypriot company formation agents for such a solution.

Fiscal representation services in Cyprus

Tax agents have usually been associated with VAT registration for foreign companies, as such businesses need local representation with the Cypriot tax authorities. However, such a requirement is no longer in place. Even so, individual investors and companies can still use tax representation with the purpose of making sure they comply with the tax legislation of this country.

Among the services a fiscal representative in Cyprus can offer are:

  • tax and VAT registration for newly incorporated companies, no matter if they are local or foreign-owned;
  • support in filing financial statements and VAT returns;
  • assistance in enrolling in the EORI system;
  • acting as a liaison between a company and the Cypriot tax authorities.

If you want to open a company in Cyprus and need assistance, you can rely on our local specialists for various services in relation to this procedure.

What is and what is not a Cyprus tax agent

When it comes to what is a fiscal representative, this can be a company or individual who has expertise and experience in accounting and accounting legislation. With respect to what it is not, such an agent cannot take as many powers as a nominee agent could, for example. It can only represent a company in the relationship with the tax authorities.

If you want to know whether it is useful for you to appoint a fiscal representative in Cyprus, you can perform the following test:

  • establish the complexity of your operations in Cyprus;
  • set out the fiscal obligations your enterprise will have in Cyprus;
  • decide on whether your business will operate solely in Cyprus or also in other EU member states.

Most of the time fiscal representatives are used by Cypriot branches of non-EU companies that need to comply with more requirements compared to EU businesses that find it easier to operate here.

One of the best uses of a fiscal representative is when you buy a shelf company in Cyprus and need assistance in complying with the financials of your purchased business.

The fiscal agent for VAT purposes in Cyprus for a foreign company

The Cypriot fiscal representative is usually hired for VAT registration and compliance purposes. Such an agent can offer support with respect to:

  • filing VAT declarations in Cyprus, but also in other countries where the company supplies VAT-taxable goods and/or services;
  • claiming VAT refunds in Cyprus;
  • filing for VAT exemptions.

A fiscal representative is usually employed in intra-community VAT matters, in order to comply with the complex EU legislation and avoid the payment of penalties.

Feel free to address our Cypriot company formation consultants for details on the VAT legislation.

Foreign investments in Cyprus

Cyprus is one of the most appealing countries for setting up a company in the EU thanks to its low corporate tax rate of 12.5%. In terms of foreign investments, recent data indicates that:

  • in September 2023, foreign direct investment (FDI) in Cyprus increased to 11.7% of the nominal GDP;
  • the same month, foreign direct investment rose by 990.2 USD million;
  • in September 2023, its foreign portfolio investment dropped by 698.8 USD million;

If you need fiscal representation in Cyprus, please contact our specialists for support.