Maintaining a Cyprus company in good standing requires attention to multiple annual obligations spanning accounting, audit, and tax filing deadlines. Existing owners often underestimate the complexity of company compliance responsibilities that extend well beyond initial incorporation. Understanding these requirements helps protect your business from penalties and ensures continued access to Cyprus’s favourable taxation regime.
The 2026 tax reform introduced several changes affecting annual compliance, including a revised corporate tax filing deadline, abolition of stamp duty on most corporate documents, and significant changes to the Special Defence Contribution framework. Every company registered with the Registrar of Companies is subject to statutory filing deadlines throughout the year. Failure to meet these requirements can result in administrative fines and loss of good standing. This guide covers the essential reporting obligations affecting your Cyprus business operations, including accounting standards, audit requirements, tax filing procedures, and corporate secretarial responsibilities.
Cyprus Company Compliance: Annual Return and Statutory Registers Requirements
The annual return represents one of the most fundamental requirements for any Cyprus company. This document provides the Registrar of Companies with current information about your business structure, directors, shareholders, and registered office address. Filing must occur within 28 days of your company’s anniversary date each year without exception.
What happens if you miss this deadline? The Registrar imposes escalating penalties, starting at €50, for minor delays. Extended non-compliance triggers larger fines and, eventually, risks of being struck off the register. Companies struck off lose their legal personality and ability to conduct business, creating serious complications for shareholders and creditors alike.
Maintaining Accurate Statutory Registers for Your Cyprus Company
Statutory registers form the backbone of corporate record-keeping obligations that every company must maintain. These registers document ownership, management decisions, and material transactions occurring throughout the company’s existence. Cyprus law requires these records to be kept at the registered office address and made available for inspection upon request.
The register of members records all shareholders, including their names, addresses, share classes held, and transfer history. The director and secretary registers contain appointment dates, residential addresses, and service addresses, where they differ. The charges register documents any security interests granted over the company’s assets, while the minutes book records board and shareholder meetings.
Required statutory registers include:
- Register of members showing all shareholders and shareholdings
- Register of directors and company secretary details
- Register of charges over company assets
- Minutes book for board and shareholder meetings
- Register of beneficial owners for UBO register compliance
The UBO register deserves particular attention, given regulatory requirements across the European Union. Cyprus implemented beneficial ownership transparency requirements in line with EU anti-money laundering directives. Your company must identify and record all individuals who ultimately own or control more than 25% of the shares or voting rights. Initial UBO filings must be made within 90 days of incorporation. Any changes must be reported within 45 days, and annual confirmation of UBO details is required between 1 October and 31 December each year.
Filing Deadlines and Penalty Structure
Late submission of annual filings triggers escalating penalties that accumulate quickly. The Registrar imposes fines starting at €50 for delays of up to one month, increasing to €100 for delays of one to three months. Delays exceeding three months attract penalties of €200 plus additional daily charges. Companies that fail to file for extended periods are subject to strike-off proceedings, resulting in the termination of their legal existence.
Key statutory filing deadlines include:
- Annual return submission within 28 days of the anniversary
- Beneficial ownership updates within 45 days of changes
- Director appointment notifications within 14 days
- Registered office change notifications within 14 days
C. Savva & Associates LTD provides company secretarial services, ensuring all filings occur within prescribed timeframes. Our systematic approach to deadline monitoring protects your business from unnecessary penalties while maintaining good standing with the Registrar.
Audited Financial Statements and Accounting Standards for Cyprus Companies
Cyprus mandates International Financial Reporting Standards for all companies preparing audited financial statements. This alignment with international standards provides credibility when dealing with foreign partners, banks, and investors who expect globally recognised reporting frameworks.
What Accounting Standards Are Used in Cyprus?
The accounting framework for Cyprus companies distinguishes between larger entities that must comply with full IFRS and smaller entities that qualify for simplified treatment. International Financial Reporting Standards apply to public interest entities, larger private companies, and entities with international operations that require consolidated reporting.
IFRS for SMEs provides qualifying small and medium-sized entities with simplified accounting treatment while maintaining international recognition. This framework simplifies the treatment of financial instruments, share-based payments, and related areas while preserving the fundamental principles of accrual accounting and the fair presentation expected by professional stakeholders.
Accounting framework requirements include:
- Full IFRS for larger and public interest entities
- IFRS for SMEs for qualifying smaller private companies
- Double-entry bookkeeping is maintained throughout the year
- Records in any language with a Greek or English translation available
- Six-year retention period for all supporting documentation from the filing deadline or submission date, whichever is later (updated under the 2026 reform from the previous framework)
Professional accounting throughout the year proves essential for accurate financial statement preparation. Many company owners attempt to reconstruct records near filing deadlines, creating unnecessary stress and potential errors that affect reported profits and tax calculations, which form the basis for liabilities.
Preparing Your Annual Financial Statements
Financial statements must be prepared and filed with the Registrar. The annual return, together with the financial statements, must be submitted within 42 days of the Annual General Meeting. The AGM must be held within 18 months of incorporation and, thereafter, once a year, no later than 15 months after the previous AGM. These statements include the balance sheet, which presents assets and liabilities; the profit and loss account, which summarises trading results; the cash flow statement, which tracks cash movements; and notes explaining the significant accounting policies applied throughout the period.
The directors are responsible for preparing financial statements that give an accurate and fair view of the company’s affairs at the balance sheet date. They must also prepare a directors’ report covering the principal activities, a business review, recommended dividends, and confirmation of the going concern status. This report accompanies the financial statements when filed with the Registrar for public record.
Financial statement components include:
- Statement of financial position at year-end date
- Statement of profit or loss showing trading results
- Statement of changes in equity for the period
- Statement of cash flows for the year
- Notes explaining significant accounting policies
- Directors’ report on company activities
Review Engagement Option for Small Companies
Certain small companies may qualify for a review engagement instead of a full statutory audit, providing limited assurance under the International Standard on Review Engagements (ISRE) 2400. This option reduces the scope and cost of assurance work while still requiring engagement by a licensed statutory auditor or audit firm. To qualify, a company must meet both of the following conditions for at least two consecutive financial years.
Review engagement eligibility conditions include:
- Net annual turnover not exceeding €300,000
- Total gross assets (before deducting liabilities) not exceeding €500,000
Companies that do not qualify for a review engagement include:
- Parent companies are required to prepare consolidated financial statements
- Entities regulated and supervised by the Central Bank of Cyprus, CySEC, or the Commissioner of Insurance
- Companies holding a qualifying participation in such regulated entities
Even when eligible for a review engagement, the company must still engage a licensed statutory auditor to perform the review and file the reviewed financial statements with the Registrar. The review provides limited rather than reasonable assurance, meaning the auditor performs inquiry and analytical procedures without the detailed testing required for a full audit opinion.
Tax Filing Obligations for Your Corporate Structure
Corporate Income Tax Returns and Deadlines
Cyprus maintains a corporate income tax rate of 15% on business profits, effective from 1 January 2026, following the comprehensive tax reform aligning Cyprus with the OECD Pillar Two global minimum tax framework. The jurisdiction remains favourably positioned compared with most European alternatives, particularly when assessed alongside the extensive exemptions, the IP Box regime (effective rate of 3%), and the Notional Interest Deduction that can reduce taxable income by up to 80%. Cyprus also benefits from a network of over 65 double taxation treaties that protect international revenue streams. Tax returns must be filed electronically through the TAXISnet portal administered by the Tax Department. Proper planning ensures companies fully benefit from available deductions, allowances, and exemptions, reducing their effective rates.
Corporate tax filing requirements include:
- Electronic submission via the TAXISnet portal system
- Filing deadline of 31 January of the second year following the tax year (for example, the return for the year ending 31 December 2026 is due by 31 January 2028)
- Payment of final tax is due on the same 31 January deadline
- Supporting schedules for specific income categories
- Transfer pricing documentation for related transactions
- Declaration of intercompany dealings and pricing
The 2026 reform extended the loss carry-forward period from five to seven years, providing greater flexibility for companies experiencing fluctuating profitability. Tax losses from qualifying activities can now be carried forward to offset future profits over a longer horizon.
Provisional tax payments create additional cash flow planning requirements throughout the year. Companies must estimate current-year profits and pay provisional tax in two instalments, due on 31 July and 31 December. Underestimating profits triggers interest charges on shortfalls, while overestimating ties up working capital unnecessarily.
VAT Registration and Quarterly Returns
VAT obligations depend on your company’s activities and annual turnover. Registration becomes mandatory when taxable supplies exceed the €15,600 threshold in any 12 months. Voluntary registration remains available for companies below the threshold seeking to recover input VAT on purchases made for business purposes.
VAT compliance requirements include:
- Mandatory registration above €15,600 taxable turnover
- Quarterly return submission within 40 days of quarter end
- Monthly returns available for exporters claiming refunds
- Record retention in line with the updated six-year period under the 2026 framework
Special Defence Contribution and Changes Under the 2026 Reform
The Special Defence Contribution (SDC) framework underwent significant restructuring under the 2026 tax reform. Cyprus company owners who are both tax resident and domiciled face obligations regarding SDC on specific passive income categories. Non-domiciled individuals remain fully exempt from SDC on dividends and interest, making this status attractive to international entrepreneurs seeking to establish Cyprus tax residency under the 60-day rule.
Key SDC changes from 1 January 2026:
The Deemed Dividend Distribution (DDD) mechanism has been abolished for profits earned on or after 1 January 2026. Previously, companies were deemed to distribute 70% of their after-tax profits as dividends within two years if no actual distribution was made, triggering SDC at 17% for shareholders who were Cyprus tax residents and domiciled in Cyprus. This requirement no longer applies to profits from 2027 onward, allowing companies to retain earnings without triggering automatic shareholder-level taxation. Transitional rules continue to apply for profits earned before 1 January 2026.
Current SDC rates for Cyprus tax resident and domiciled individuals:
- Dividends: 5% on actual distributions from post-2026 profits (reduced from 17%). Dividends from pre-2026 profits remain subject to 17%, where not previously taxed under DDD
- Interest from deposits and passive sources: 30% (unchanged for general passive interest). Interest from EU Member State government bonds and Health Insurance Fund deposits is subject to a reduced rate of 3%
- Rental income: SDC abolished. Rental income is now taxed solely under income tax rules, eliminating the previous 3% levy on 75% of gross rent (effective rate 2.25%)
The non-domicile status exempts qualifying residents from SDC on dividends and interest for the first 17 years of Cyprus tax residence. Under the 2026 reform, individuals who have completed 17 years may extend their non-domicile status for two additional five-year periods by paying a lump sum of €250,000 per period.
Appointing Qualified Auditors for Statutory Audit
Companies required to undergo a statutory audit must appoint auditors licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC). These professionals must demonstrate independence from the company being audited, meaning they have no financial interests or close personal relationships with its directors. Public interest entities face additional requirements, including auditor rotation every seven years.
The audit process examines whether the financial statements present the company’s financial position and results fairly. Auditors test transactions, verify the existence of assets, assess provisions, and review management judgments before issuing their opinion. Unqualified opinions indicate that statements are presented fairly in all material respects, assuring stakeholders relying on the reported information.
Corporate Services: Company Secretarial and Ongoing Management
Professional Company Secretarial Services Role
Professional company secretarial services ensure continuous compliance with statutory obligations that accrue throughout each financial year. A qualified secretary monitors filing deadlines, prepares board resolutions, maintains statutory registers, and coordinates communication between directors, auditors, and tax advisors.
Company secretarial responsibilities include:
- Monitoring and meeting all regulatory filing deadlines
- Preparing and submitting annual returns accurately
- Maintaining statutory registers and corporate minute books
- Coordinating director and shareholder meeting requirements
- Processing share transfers and ownership changes
The abolition of stamp duty from 1 January 2026 has reduced the cost of executing corporate documents, including share transfer instruments, board resolutions, and agreements. Documents executed on or after this date no longer attract stamp duty charges.
C. Savva & Associates LTD delivers integrated services covering accounting, tax planning, and company secretarial functions through a single professional relationship. Our team ensures your Cyprus company maintains good standing while you concentrate on growing business operations.
Economic Substance Requirements for Tax Benefits
Economic substance requirements affect Cyprus companies that claim tax benefits through holding structures, intellectual property activities, or financing arrangements. Your company must demonstrate a genuine presence through qualified employees performing core functions, local decision-making, and operating expenditure proportionate to the activities claimed.
Under the 2026 reform, the definition of a Cyprus tax-resident company has been expanded through the “incorporation test,” which treats companies incorporated under the Cyprus Companies Law as automatically tax-resident unless a double tax treaty provides otherwise. While this provides a baseline of tax residency for newly formed entities, demonstrating adequate substance remains essential to access treaty benefits and defend the company’s tax position.
Substance indicators examined by tax authorities include:
- Direction and management occurring within Cyprus
- Board meetings held locally with directors present
- Qualified employees performing core income functions
- Operating expenses are proportionate to declared activities
Companies failing to demonstrate adequate economic substance risk losing tax benefits and facing additional scrutiny from authorities during examinations. Proper structuring from incorporation avoids complications arising during subsequent audits or information exchange requests.
What Is a Certificate of Good Standing for a Cyprus Company?
A certificate of good standing confirms your company remains properly registered with the Registrar and has no pending strike-off actions. Banks, potential partners, and foreign authorities frequently request this document when establishing business relationships.
Reasonable standing certificate requirements include:
- All annual returns filed are currently up to date
- No outstanding penalties, fines, or fees owing
- At least one director and secretary appointed
How to Verify a Company in Cyprus?
Verifying a Cyprus company involves searching the Registrar of Companies’ online database accessible via the eFiling portal. Anyone can access basic information, including registration number, date of incorporation, registered office address, and current status. More detailed information requires formal search requests with associated fees.
Frequently Asked Questions About Annual Compliance
What accounting standards are used in Cyprus?
Cyprus requires all companies to prepare financial statements in accordance with International Financial Reporting Standards. Qualifying smaller entities may apply IFRS for SMEs, providing simplified accounting treatment while maintaining international recognition expected by banks and trading partners.
What do I need to register a company in Cyprus?
Company registration requires several elements: a unique name approved by the Registrar, a memorandum and articles of association, details of the initial directors and secretary, shareholder information, and a Cyprus-registered office address. Nicholas Ktenas & Co LLC provides legal documentation for incorporation matters that require professional expertise.
What is a certificate of good standing for a Cyprus company?
This official document confirms that your company maintains an active status and that all statutory filing obligations are up to date. It verifies that no strike-off proceedings exist and that all fees have been paid, both of which are essential when opening bank accounts or demonstrating regulatory compliance.
How to verify a company in Cyprus?
Verification is processed through the Registrar’s online portal, where basic company information is publicly available. Formal searches provide certified details, including director names and filed documents through the electronic filing system.
What is the corporate tax rate in Cyprus?
The corporate income tax rate is 15%, effective from 1 January 2026. Extensive exemptions on dividend income, capital gains from securities, and the IP Box regime (effective rate 3%) mean that effective rates are often significantly lower than the headline figure.
How Can We Help?
C. Savva & Associates LTD provides complete annual reporting and compliance services for Cyprus company owners seeking reliable support regarding statutory obligations. Contact our team to discuss how we can support your ongoing requirements throughout each financial year.