Cyprus audit requirements
Key figure: Statutory auditYes
Statutory audit in Cyprus: Yes. Every company prepares audited financial statements under IFRS and files them together with its tax return, whether it traded or not.
A dormant holding company with one bank account is still audited. So is a company whose owner and directors all live outside Cyprus. The exception is size, not activity, and it is described in the note below.
When this applies
Review instead of audit: the law’s wording
Every company must prepare audited IFRS financial statements and file them with the tax return. Small private companies (not public, not public-interest or regulated entities) may instead have a review engagement (ISRE 2400) if net turnover and total gross assets do not exceed the thresholds for two consecutive years: turnover EUR 200,000 / assets EUR 500,000 (Companies Law amendment 88(I)/2022); turnover threshold reported raised to EUR 300,000 for financial years beginning on or after 6 Feb 2026 (secondary only, legal basis not verified).
Checked on cy-drcor-after-incorporation
Annual return and filing deadlines
Key figure: Annual return filing window28 days
The annual return goes to the Registrar of Companies with the financial statements within 28 days of its drafting date.
Annual return is filed with the financial statements within 28 days of its drafting date; first financial statements presented to the general meeting within 18 months of incorporation, then at least once per calendar year.
The annual company levy no longer applies: the fact reference shows €0 for the annual government fee. Levies for earlier years that were never paid are still owed, and the annual return carries its own filing fee.
Who files what
Our accounting package ends with the tax return. The annual return itself is filed by the company secretary, which is a separate package from €600; taking both keeps every date with one team.
Corporate tax return at the new rate
Key figure: Corporate income tax15%
Cyprus charges 15% corporate income tax on taxable profit from 1 January 2026. The tax return is prepared from the audited figures, so a late audit means a late return.
Losses now carry forward for 7 years, which matters for a start-up that runs at a loss in its first years: we record each year’s loss in the return so it can be used later. Deemed dividend distribution was abolished for profits from the same reform onwards; profits of earlier years stay under the old rules.
The first year after incorporation
Key figure: Tax number deadline after incorporation60 days
A new company must obtain its tax identification number within 60 days of incorporation, and books start from the day the company exists, not from its first invoice.
VAT is a separate registration: it becomes mandatory once taxable supplies pass €15,600. VAT returns are outside our accounting package; we quote them with the VAT registration.
Running the accounts from outside Cyprus
Key figure: Register of beneficial ownersYes
Beneficial ownership must be filed and kept current in the register of the Registrar of Companies (Yes in the fact reference).
The rest of the year-end works remotely. You upload bank statements, sales and purchase invoices and contracts; we post them, send you draft statements to approve and hand the audit file to your auditor. Nothing in this cycle needs you in Nicosia or Limassol.
Who this is not for
Our package fits one company and one financial year. It is the wrong fit in these cases.
- You want an audit opinion from us. We do not sign audit reports; your company appoints an independent auditor, and that fee is billed by the auditor.
- You need monthly management accounts or payroll. The package covers year-end work, and payroll is quoted separately.
- The company is several years behind on filings. Arrears are quoted per year after we see the records.
- You want a personal tax plan. This page covers company accounts; your own tax position needs an individual consultation.