Registering Your Freelance Business in Cyprus

To start freelancing, you must register your business with the Cypriot government. You can choose from several legal structures, such as:

• Company

• Partnership

• European Company

• Overseas Company

However, for many freelancers, registering as a self-employed person is sufficient. This status is similar to being a sole trader, which allows you to work as an independent entity with fewer formalities than a corporation.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

Steps to Register as a Freelancer in Cyprus:

1. Choose a Business Name: Ensure the name is unique by searching the government database, then reserve it through the Ministry of Energy, Commerce, and Industry. This typically takes 3–5 business days.

2. Register for Trademarks: Any trademarks can be registered with the Cypriot patent office.

3. Apply for a Tax ID: Complete form TD 2001 to register with the tax office, providing banking details and personal information.

Tax Obligations for Freelancers in Cyprus

Freelancers in Cyprus must comply with several tax obligations, including income tax, social insurance, and VAT (if applicable).

• Income Tax: All freelancers must register and pay income tax regardless of earnings. Freelancers with income above €19,500 per year are subject to personal income tax (PIT).

• Social Insurance Tax: Register with Social Insurance Services by filling out form YKA 021 (for online payment setup) and form YKA 023 (for direct debit authorization).

• VAT Registration: Freelancers with an income exceeding €15,600 annually must register for VAT at a rate of 19% on most services. Reduced rates of 9% apply to specific sectors like transportation and food.

Invoicing and Getting Paid

Invoicing in Cyprus requires adherence to VAT regulations, especially for freelancers with taxable incomes. Each invoice should contain:

• A unique invoice number and issue date

• VAT number, freelancer’s and client’s names, and addresses

• Description of services and VAT rate

• Total service value and applicable VAT

Summary of Steps to Start Freelancing in Cyprus

1. Select a Legal Structure: Register as a self-employed person or sole trader.

2. Reserve a Business Name and Register for Trademarks (if needed).

3. Register for Income Tax and Social Insurance: Complete and submit the necessary forms.

4. VAT Registration: If income exceeds €15,600, register and comply with VAT regulations.

5. Use a Reliable Invoicing System: Ensure compliance with VAT requirements.

6. Manage Finances Carefully: Set up a business account, track expenses, and automate financial processes where possible.