Can I Claim Software as a Business Expense in Cyprus?
Yes. Software receives a wear and tear allowance of 33 and one third percent a year, and items under about €1,709 are written off in year one.
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What Tax Department (Τμήμα Φορολογίας), Ministry of Finance says
Software receives an annual wear and tear allowance of 33⅓%, straight-line on cost. Items under about €1,709 are written off in year one. Confirm asset-specific treatment with the Tax Department or a licensed practitioner.
When you can claim
- Purchased software licences
- Accounting and business software bought outright
- Small items written off in year one
- 33 and one third percent a year on larger items
When you cannot claim
- Software for private use
- Software with no invoice
- Software bought for another business
- Costs already claimed through another allowance
Good to know
Pro tip: Check whether a subscription is a running cost or a capital purchase. Treatment can differ, so confirm with a practitioner if unsure.
Related expenses
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