Real Client Expenses: Cyprus Company Expenditure - Reclassification what is allowable and what is not

Company Expenses

Would you please answer some additional questions in preparation for tomorrow's call?

I need extra clarity around expenses:

1. • What can be covered by accommodation/office expenses?

                                                       i.      For example, the cost of running an overseas office where employees work… what exactly can be claimed for? A portion of utility bills like electricity and gas?

CYAUSE:> Yes - 1/3 of household expenses as discussed and any traveling locally /overseas etc.

                                                      ii.      If we (beneficial owners/employees) travel to Cyprus, would the cost of hotel - 100% - rental - 1/3 also be an eligible expense?

1. • Travel - overseas / inland: I guess travel in and out of Cyprus, car rental, petrol, insurance, and other expenses? Are there any limits? These expenses need to appear reasonable to the business activities and size.
   • Telephone… does it have to be a phone paid for by the company, or a personal mobile used for business purposes is also eligible? Yes - personal phone also suffice.
   • Entertainment: what are the limits and rules?  Entertainment expenses subject to a maximum amount of 1 % of the gross business income or €17.086, whichever is lower
   • Meeting and greeting clients' expenditure: would a business trip to the USA aimed at expanding business (new project negotiations) qualify as an expense under this or - Could - we will decide if appropriate
   • What is classed as office supply? I guess computer equipment is also an allowable expense? Yes (distinction between capital expenses are fixed assets and revenue expenses - bring down corporation tax)

1. How do you want me to track expenses… I use Xero for my other businesses… would you be able to use it, or do you have another system I will need to use? Local accounting and payrol software

1. Would you help me open a company bank account in Cyprus? Yes - fee provided 
2. Looking to the future and the purchase of residential property in Cyprus. Would any expenses related to this purchase qualify as business expenses…for example, property tax? Depends if booked under the Company or not but 1/3 of running expenses do get qualified. Whether or not it should be booked under the company will be investigated at a later stage.

1. • What would be the best way to purchase a house… by the company or personally? As above

1. As we will be using EU passports throughout the process… what would be the criteria we need to meet to apply for the residence permit for EU citizens? Separate email will be send to you.

Knowing your feedback ahead of the call will help us streamline our discussions for sure 😉