News: Limassol Will Introduce a Professional Tax for Companies

The municipality of the second-largest city in Cyprus - Limassol - voted to introduce a professional tax. This payment will become mandatory for companies registered in the city. The authorities of Limassol took advantage of the provisions of the Law “On Municipalities” of Cyprus, which allows to charge professional tax on organizations subject to the following conditions:

• have their own office in the municipality;

• work in the field of audit, accounting, secretarial, legal services.

The municipality of Limassol also announced tax rates for companies of various kinds. Independent organizations will have to pay 150 euros to the local budget. If the company is part of a group of companies, the rate will be 85 euros. Organizations that do not conduct actual activities transfer 50 euros to the municipal budget.

The Law on Municipalities in Cyprus has been in force since 1985. According to this document, local authorities are empowered to approve additional taxes for legal entities. In particular, municipalities have the right to impose taxes on real estate, professional and hotel taxes, etc.

Law firm Law&Trust offers legal services for clients who work in Cyprus, and in the municipality of Limassol in particular. Our lawyers will tell you what a professional tax is and how to pay it, as well as help you calculate all the necessary taxes in the municipality.