Accounting for construction companies in Cyprus

Construction has its own accounting pressures in Cyprus — the VAT reverse charge on construction services, job-by-job costing, subcontractor and labour payroll, retentions and work-in-progress. We give you project-level visibility and keep VAT, payroll and corporate tax (15%) compliant on every contract.

For construction companies

What we take off your plate

VAT reverse charge

Construction services between taxable persons fall under the reverse charge — we apply it correctly so neither party gets it wrong.

Job & project costing

Management accounts by project, so you see margin and overruns while you can still act.

Subcontractor & site payroll

Payroll, Social Insurance and GHS for site staff, plus correct treatment of subcontractors.

WIP & retentions

Work-in-progress and retention accounting handled to IFRS for clean year-ends and audits.

Frequently asked questions

For construction services supplied between VAT-registered persons, the recipient self-accounts for the VAT (charging and, where entitled, reclaiming it) rather than the supplier charging it. Applying it correctly is a common error point we manage.

The standard 19% generally applies, though a reduced 5% can apply to qualifying primary residences under strict conditions. The correct rate depends on the property and use.

Most Cyprus companies need a statutory audit (or an ISRE 2400 review for the smallest, under the turnover/asset thresholds), delivered via ICPAC-licensed auditors. We coordinate it end to end.

Ready to get your numbers in order?

Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.

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