The audit requirement is universal, with a review-engagement alternative for small companies. The obligation, the exception, and the HE32 and TD4 filing calendar.
- Universal audit requirement
- IP Box qualifying-asset test
- Is a statutory audit really mandatory for every Cyprus company?
Cyprus's 2026 tax reform raised the headline corporate rate for the first time in over a decade, leaving the IP Box and Non-Dom regimes as the two structuring levers that now separate a standard 15% tax position from a single-digit effective rate.
Companies already using Cyprus for IP or holding structures should re-test each qualifying asset against the IP Box rules under the new 15% headline rate, since the 2026 reform changed the baseline against which the 80% exemption is measured — the regime is unchanged, but what it now saves is not.
What has to be filed in Cyprus, and against which standard. Every figure below is published on the Cyprus country page.
| Cyprus | |
|---|---|
| Annual accounts filing | HE32 annual return with audited accounts due within 28 days of the AGM; TD4 corporate tax return due 31 January of the second year following year-end (from the 2026 financial year onward) |
| Statutory audit | A statutory audit is mandatory for every registered Cyprus company, including dormant ones; small companies (net turnover under €200,000, rising to €300,000 from 6 February 2026; gross assets under €500,000; for two consecutive years) may opt for a lighter ISRE 2400 (Revised) review instead of a full audit |
| Company registry | Registrar of Companies and Official Receiver (Department of Registrar of Companies and Intellectual Property, Ministry of Commerce, Industry and Tourism) |
| VAT | 19% standard · 9% (hospitality, accommodation, restaurants) · 5% (food, medicine, books, public transport) |
| Minimum wage | €979/month gross for the first 6 months of employment, €1,088/month thereafter (statutory minimum wage framework, 2026–2027) |
What makes it complex in Cyprus
- Universal audit requirement — — every registered Cyprus company must have audited financial statements, even if dormant; small companies (turnover below €200,000, rising to €300,000 from 6 February 2026) may opt for a lighter ISRE 2400 review instead.
- IP Box qualifying-asset test — — only functional/technical IP (in-house software, patents and patent applications) qualifies for the 80% exemption; marketing intangibles and brand value do not, so structuring must be assessed asset by asset.
Is a statutory audit really mandatory for every Cyprus company?
Yes. Every registered private or public company must have audited annual financial statements, including companies that never traded. Small companies — turnover below €200,000, rising to €300,000 from 6 February 2026, and gross assets below €500,000, for two consecutive years — may opt for a lighter ISRE 2400 review engagement instead of a full audit.
Universal audit requirement is one of the points HTLC Network handles for clients operating in Cyprus, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Cyprus the scope is: Statutory accounts under IFRS as adopted by the EU (mandatory for all Cyprus companies regardless of size), VAT returns, and corporate tax filings, including IP Box qualifying-profit calculations where relevant.
See Accounting & Tax Compliance in Cyprus for the full scope, or the Cyprus country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.