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Fiscal Representative in Cyprus

Fiscal Representative in Cyprus

A fiscal representative in Cyprus is an agent who can represent a company in a relationship with the tax authorities. Such an agent must be appointed by companies registered in non-EU countries with which Cyprus does not have a mutual assistance agreement.

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 are usually associated with VAT registration for foreign companies, as such businesses need local representation with the Cypriot tax authorities. Fiscal representation is required if a company is registered in a country outside the European Union with which Cyprus does not have an agreement for mutual assistance.

 Quick Facts  
 Requirement to appoint a Cypriot fiscal representative (YES/NO) Yes, for businesses incorporated in non-EU states with which Cyprus does not have agreements in this sense. 

 Types of businesses that can appoint a fiscal agent in Cyprus

 Local and foreign companies can appoint such an agent.

 Possibility to appoint a fiscal agent by sole traders (YES/NO)

Yes, sole traders can also use fiscal representative services. 

 Who can act as a fiscal representative

– Cypriot accountans and accounting companies,

– other specialists, such as lawyers. 

 Registration requirement for a tax agent (YES/NO)

Yes, specialists registered with their professional bodies can offer such services. 

 Availability of VAT registration services through a fiscal agent (YES/NO)

 Yes, VAT registration is avaiable through such an agent.

 VAT reporting services availability (YES/NO)

 Yes, a fiscal agent can handle VAT reporting and payment services in Cyprus.

 Availability of VAT filing services (YES/NO)

Yes, monthly or quarterly filings can be made. 

 Record-keeping solutions

Yes, this is a sought service in Cyprus. 

  VAT control support (YES/NO)  Yes, especially for foreign companies who need support during inspections made by the Tax Department.
 VAT claims and refund services (YES/NO)

 Yes.

 Support in intra-community VAT matters (YES/NO)

 Yes, such a service is useful to companies operating in multiple EU states.

Availability of other services (YES/NO) 

 Yes, a fiscal agent can also offer accounting services, such as representation with the tax authorities.

 Activities for which fiscal representation is recommended

 – import/export,

– e-commerce,

– transport of passengers,

– VAT-taxable supply of services, etc.

 Availability of fiscal representative services in Cyprus (YES/NO)  Yes, our company formation agents in Cyprus offer such solutions.

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.