The mistake people make most often is hiring the first accountant who quotes a low monthly fee. Months later they find out what that fee left out. Cyprus business tax has a simple headline, a 15% corporate rate from 1 January 2026. The rate rarely causes the damage. A vague scope of work does.
The seven questions below run in the order you would ask them. Get each answer in writing before you pay anything.
1. Ask exactly what the fee covers
A monthly fee can mean bookkeeping only. It can mean bookkeeping plus the annual return. Or it can mean the full set, including payroll and VAT. Ask for a list of tasks, not a price. Then ask which tasks cost extra.
- Annual company tax return and financial statements
- VAT registration and periodic returns
- Payroll and social insurance filings
- Letters from the tax office and the replies to them
- Your personal tax return as the owner
The last item catches many owners out. Company work and personal work are separate engagements, even when one firm handles both.
2. Check the licence before you check the price
Cyprus accountants and auditors work under a professional body and a licensing regime. The Institute of Certified Public Accountants of Cyprus publishes information on its members and on what the profession requires. Ask the firm for its registration details and check them yourself. A friendly office and good English are not credentials.
If the firm will not give you a number you can verify, stop there.
3. Ask who owns each deadline
A missed filing date costs money, whoever missed it. Ask the firm which deadlines it tracks and how it warns you about the ones that stay with you. Find your own dates on the Tax Department pages and compare them with the firm's list. If the two lists disagree, you have learned something useful before it cost you anything.
The site already covers how to date each tax clock before you start trading. This question tests whether your accountant has done the same.
4. Ask who answers the paper when it arrives
Official processes in Cyprus are paper-heavy and often in person. Expect appointments, certified copies and waiting. That shapes the question. When a letter from the tax office lands, who reads it, who replies, and who attends if an appointment follows?
Some firms handle this inside the fee. Others bill by the hour. Neither answer is wrong. An unclear answer is the problem.
5. Give them one real case and ask them to walk it through
Most checklists skip this question. Do not ask "how does Cyprus business tax work?" Describe your own situation in three lines and ask for the route from client invoice to your bank account.
Take a sample case. You run a one-person company with clients abroad, and you live in Cyprus for part of the year. Ask the firm to explain these points:
- How the company's profit is taxed
- How you take money out, as salary or dividend, and what each route triggers
- Which social insurance rate applies to you in that setup. The employee rate is 8.8%, and the self-employed rate is 16.6%
- Which health contribution category you fall into, because the rate depends on who is paying
A good adviser answers in steps and names what depends on your facts. A weak one gives you a single confident figure. The rates differ by category, so one figure for "contributions" is a warning sign. Check any answer against the Social Insurance Services pages.
6. Ask where the Cyprus advice stops
Your home country keeps its own rules, including exit rules and any ongoing filing duties. A Cyprus accountant can advise on Cyprus law. Many cannot advise on UK or Irish tax, and they should say so plainly.
Ask the firm where its advice ends and whether it works with a home-country adviser. Tell them which countries are involved. Where you live and where the work happens both matter. That is why the site separates the UK-facing owner's checks from the setup steps.
7. Ask what you get back if you leave
This last question protects you later. If you end the engagement, what do you receive, and how fast? Ask for copies of filed returns, the working papers behind them, and your records in a usable format.
Ask how they handle change too. Rules and thresholds move, and guidance online is often out of date. A firm worth hiring can tell you how it learns about changes and how it passes them on. Confirm anything material with the relevant ministry or a licensed adviser before acting.
A simple rule for scoring the answers
Count the questions that got a specific, written answer. Five or more means a firm you can work with. Three or four means ask again in writing. Fewer than three means keep looking, whatever the fee.
Where your firm sits matters less than you expect. Paper-heavy processes do favour someone near the offices you will visit. If you are still choosing a base, read where to live in Cyprus. If the company will buy a vehicle, read the car buying guide first and ask your accountant how the purchase is treated before you sign.
Next step
This is general information, not tax or legal advice. Write down your three-line case from question 5, take it to two licensed Cyprus advisers, and compare their written answers. To get an introduction to a vetted provider, start from the ClearCyprus home page. The matching service works best when you arrive with your case already written out.
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Related reading: Cyprus Business Tax: Price Your First Hire Before You Make the Offer.
Common questions
What is the corporate tax rate in Cyprus in 2026?
Corporate tax is 15% from 1 January 2026, up from 12.5%. This aligns Cyprus with the OECD global minimum. Confirm the current position with the Tax Department or a licensed adviser before you plan around it.
Do I need a Cyprus accountant if I run a one-person company?
A company has filing duties whatever its size, and most owners hire a licensed professional to meet them. The decision depends on your facts, including whether you employ anyone or register for VAT. A licensed adviser can confirm what applies to you.
How do I check that a Cyprus accountant is properly qualified?
Ask the firm for its registration details and check them with the professional body. The Institute of Certified Public Accountants of Cyprus publishes information on its members. Do not rely on the firm's own website alone.
Are social insurance rates the same for employees and the self-employed?
No. The employee rate is 8.8%, the employer rate is 8.8%, and the self-employed rate is 16.6%. Any source quoting 15.6% for the self-employed is out of date.
Will a Cyprus accountant handle my UK tax too?
Not necessarily. Many Cyprus firms advise on Cyprus law only. Ask where their advice ends and whether they work with a UK adviser for your home-country duties.
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