Accounting & tax for restaurants & hospitality in Cyprus

Restaurants, cafés and hotels in Cyprus run on thin margins and high transaction volumes — and a reduced 9% VAT rate on restaurant, catering and accommodation services. We keep the VAT right, run high-volume payroll for seasonal teams, and give you the daily/weekly numbers you need to protect margin and cash flow.

For restaurants & hospitality

What we take off your plate

9% reduced VAT

Restaurant, catering and accommodation services use the reduced 9% rate — we make sure each supply is rated correctly.

Seasonal payroll

High-turnover, seasonal staff payroll with Social Insurance and GHS handled accurately every month.

Cash & margin control

Weekly management figures on food/labour cost percentages so you can act fast.

Tips & service charges

Correct treatment of tips, service charges and cash takings for VAT and payroll.

Frequently asked questions

Restaurant and catering services, and accommodation, generally fall under the reduced 9% VAT rate (rather than the 19% standard rate). The correct categorisation of each supply matters and is a frequent audit point.

Each employee must be registered (Ergani) before starting, with monthly Social Insurance (8.8% each side), GHS and PAYE remitted by the end of the following month. We run the full cycle including starters/leavers.

At minimum monthly (ideally weekly) figures on food and labour cost percentages, covers and cash — the metrics that protect margin in a low-margin, high-volume business.

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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