On 13 October 2020, the Executive Committee of the Union of Cyprus Municipalities, decided on adoption of a common policy regarding the imposition of an annual professional license fee to each legal entity that carries on any business, trade, or profession within the vicinity of municipality where the registered office is located.
The enforcement of an annual professional license fee to each legal entity that carries on any business, trade, or profession within the vicinity of municipality, is provided in the articles 104 -109 of the Municipalities Law (L.111/1985).
In the scope of the framework, the Executive Committee of the Union of Cyprus Municipalities proceeded with classification of the legal entities as stated below:
|Category||Fee (per legal entity)|
|Active legal entities that are part of a group of
|Active legal entities that are not part of a group of companies||€250|
|Inactive (dormant) legal entities*2||N/A|
*For a legal entity to be classified as a part of a group of companies, a confirmation from a certified accountant and/or auditor of the group must be submitted to the relevant municipality, indicating the group structure the percentage held by each legal entity in the group.
*2 A company is considered “Dormant” if it meets the conditions defined in Circular 2014/2, which can be accessed by following the link below:
The invoice from the Municipality is sent to the registered office of the legal entity on an annual basis, indicating the municipality fees, methods of payment as well as the deadline by which the fee must be settled. Failure to settle annual professional license fee by the due deadline, will result in applicable penalties. A separate invoice will be sent by the relevant municipality with applicable penalties.
We, at Y. Vasiliou & Co LLC, remain at your disposal for any further information, clarifications, or professional assistance in relation to the above-mentioned matter.