Can I Claim Business Entertainment as a Business Expense in Cyprus?
Partially. Business entertainment is deductible only up to 1% of gross revenue, capped at €17,086 a year. Anything above that is disallowed for corporate income tax.
Finn does your books in Cyprus
AccountsOS runs full accounting for Cyprus businesses, tax, expenses and deadlines, in plain English. Ask Finn about yours, no signup needed.
What Tax Department (Τμήμα Φορολογίας), Ministry of Finance says
Business entertainment expenses are deductible only up to 1% of gross revenue, capped at €17,086 per year, and the excess is disallowed for corporate income tax. Confirm edge cases with the Tax Department or a licensed practitioner.
When you can claim
- Client meals and hospitality, within the 1% of gross revenue limit
- Hospitality at events, within the same limit
- Gifts that count as entertainment, within the same limit
- Staff events, treated separately and confirmed with a practitioner
When you cannot claim
- Entertainment above 1% of gross revenue
- Entertainment above the €17,086 annual cap
- Private entertainment of owners
- Entertainment with no record of who attended and why
Good to know
Pro tip: Keep a record of who attended and the business purpose. Track the running total against the cap so you know when it is reached.
Important: The limit is an annual cap on the total, so track it through the year and not only at year end.
Related expenses
Stop guessing what you can claim in Cyprus
AccountsOS automatically categorises expenses with Tax Department (Τμήμα Φορολογίας), Ministry of Finance-aware rules and tells you exactly what is claimable.
Try Free