Industry
Accountants for Property Developers in Cyprus
Tsquared provides Cyprus property developers with project-based accounting, VAT recovery, cash-flow forecasting and audit support so every development stays profitable and bankable.
Challenges you face - solutions we provide
The problems property developers and construction companies bring to us, and exactly how we solve them.
Guides for Property Developers
Project-based accounting
Developers should track every Cyprus project as its own cost centre, recording land, construction, finance and sales costs separately so margins and bank covenants are always visible.
VAT reverse charge in construction
Cyprus applies a domestic VAT reverse charge to construction services between VAT-registered businesses, so the developer, not the subcontractor, accounts for the VAT.
Off-plan sales and revenue recognition
Under IFRS 15, revenue from Cyprus off-plan sales is recognised either over time or at handover depending on the contract, which significantly changes reported profit and tax timing.
Structuring a development company
Many Cyprus developers use a special-purpose company for each project, which ring-fences risk, simplifies financing and allows clean exits through a share sale.
Tax on land acquisition
Buying development land in Cyprus can trigger transfer fees, VAT on building land and capital gains tax for the seller, so the deal structure should be planned before signing.
Cash-flow forecasting for builds
A rolling 13-week and full-project cash-flow forecast lets Cyprus developers time drawdowns, contractor payments and sales receipts and avoid costly funding gaps.
Reporting to banks and lenders
Cyprus banks financing developments require regular cost reports, sales updates and audited accounts; preparing them accurately keeps facilities available and cheaper.
Paying subcontractors correctly
Developers must check subcontractor VAT and Social Insurance status, apply reverse charge where relevant and keep signed valuations to support every payment.
Capital allowances for developers
Buildings held for rent qualify for Cyprus capital allowances, whereas buildings held for sale are trading stock, so classification affects both tax and accounts.
Joint-venture developments
Joint ventures between landowners and developers in Cyprus need clear profit-sharing, VAT and tax agreements, with separate accounting so each partner's share is transparent.
Attracting foreign investors
Audited accounts, clear structures and transparent reporting make Cyprus developments far easier to market to foreign investors and investment-programme buyers.
Exit and sale planning
Selling a completed project or the company that owns it has very different tax results in Cyprus, so the exit route should be planned at the start of the development.
Payroll for construction staff
Construction payroll in Cyprus must handle Social Insurance, GHS, holiday fund contributions and site allowances correctly to avoid labour inspection penalties.
Audit for development companies
Every Cyprus company, including development SPVs, needs an annual statutory audit, and developers benefit from auditors who understand project costing and revenue recognition.
Talk to a Cyprus accountant this week
Free 30-minute consultation. Clear fixed-fee proposal.