Maintaining a Cyprus company in 2026 requires more than simple bookkeeping; it requires a strategic response to the December 22, 2025 Tax Reform. With the corporate tax rate now at 15% and the Tax Department’s new “Instant Audit” system, professional accounting is your primary defense against penalties.
Most business owners in Cyprus are frustrated by the same three pain points:
Since the 2025 year-end vote, every Cyprus company (LTD) must adhere to a stricter “Substance and Reporting” standard.
| Requirement | Deadline | Impact of Non-Compliance |
| Monthly Bookkeeping | Ongoing | Loss of 15% Tax Deductions |
| VAT/VIES Filing | Every 3 Months | €100+ fine + Interest per month |
| Annual Audit | Within 12 Months | Up to €5,000 Fixed Penalty (New for 2026) |
| Employer Return (IR7) | May 31st | Personal liability for Directors |
We handle the daily entry of transactions in accordance with IFRS. In 2026, we specifically focus on:
With the €22,000 tax-free threshold now in effect, we optimize your payroll to minimize Social Insurance (8.8%) and GeSY (2.65%) while maximizing your take-home pay.
Every Cyprus company is legally required to undergo an annual audit by a licensed statutory auditor. Our team prepares your “Big Books” to ensure the audit is fast, efficient, and clean.
Full-Transparency, pricing including VAT.
Among our key services are Cyprus company setup, tax and accounting support, banking solutions, and non-dom residency guidance.
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Cyprus strictly follows International Financial Reporting Standards (IFRS) as adopted by the European Union. Unlike other jurisdictions that allow local GAAP, Cyprus is the only EU country that mandates full IFRS for all companies, ensuring high transparency for international investors and banks.
Yes. Under the Companies Law (Cap. 113), every Cyprus LTD must have its financial statements audited by a certified auditor. Even “Small Companies” must file audited accounts, though the disclosure requirements are slightly simplified.
Under the Cyprus Assessment and Collection of Taxes Law, all accounting records, invoices, and supporting documents must be kept for at least six years from the end of the financial year they relate to. Records can be kept electronically provided they can be retrieved and printed.
The corporate income tax return (TD4) is generally due 15 months after the end of the tax year. For a fiscal year ending December 31st, the filing deadline is March 31st of the second following year (e.g., FY2024 is due March 2026).
While possible, most Cyprus banks and EMIs require up-to-date management accounts or the latest audited financial statements to maintain a corporate account. Poor accounting is the #1 reason for account freezes in Cyprus.
Pricing is typically based on transaction volume and VAT complexity. A dormant or low-volume holding company usually costs €500 – €800 per year, while an active consulting business typically ranges from €1,200 to €2,500 per year including VAT and annual filings.
The corporate tax return (TD4) is due 15 months after the end of the tax year. For example, the 2024 tax year return is due by March 31, 2026. VAT returns are submitted quarterly, usually by the 10th day of the second month following the quarter.
The mandatory VAT registration threshold remains at €15,600 of taxable turnover in any 12-month period. However, many companies choose Voluntary Registration to reclaim VAT on setup costs and office rent.
Yes, switching is a straightforward process. We handle the Professional Clearance by contacting your current firm to request your previous ledgers and tax history. We ensure the transition is seamless with no interruption to your filings.