Accounting & Audit Services

Highworth provides accounting services in Cyprus for local businesses, international groups and non-resident owners, covering bookkeeping, IFRS financial statements, corporate tax returns, VAT, payroll and full coordination of the statutory audit with an independent licensed auditor.

Highworth provides accounting services in Cyprus for local businesses, international groups and non-resident owners, covering bookkeeping, IFRS financial statements, corporate tax returns, VAT, payroll and full coordination of the statutory audit with an independent licensed auditor. Working from Nicosia with clients worldwide, our accountants keep your Cyprus company compliant with the Companies Law, the Tax Department and the Registrar of Companies, with processes designed to keep every filing accurate and on time, so your year-end closes without last-minute surprises.

Cyprus compliance became more demanding after the tax reform that took effect on 1 January 2026, which raised corporate tax to 15% and moved key filing dates, while a separate change to the audit rules widened the review option available to smaller companies in place of a full audit. Whether you run an operating business, a holding structure or a newly incorporated entity, the right accounting partner turns these rules into a clear annual routine rather than a recurring source of risk.

Our Accounting and Audit Services

Every engagement is built around what your company actually needs to file, report and decide. Most clients use several of the services below as a single package, with one team responsible for the full compliance cycle.

Bookkeeping and Management Accounts

Accurate books are the foundation of everything that follows, from VAT returns to the audit itself. Our team records sales, purchases, bank transactions and payroll on a monthly or quarterly basis, reconciles bank and intercompany balances, and keeps supporting documents organised for year-end. We can keep the books in our own system or in your company’s software. On request, we prepare management accounts with profit and loss, balance sheet and cash flow reporting, giving directors a reliable view of performance between annual statements.

Preparation of IFRS Financial Statements

Cyprus companies must prepare annual financial statements in accordance with International Financial Reporting Standards as adopted by the EU and the Cyprus Companies Law, Cap. 113. We prepare the full set, including the statement of financial position, income statement, statement of changes in equity, cash flow statement and notes, ready for audit or review. For groups, we can also prepare consolidated statements and reporting packs aligned with parent company deadlines.

Audit and Review Coordination

An independent audit must be signed by an auditor licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC), and professional independence rules restrict how far an auditor can be involved in preparing the records it audits. Highworth does not audit the accounts it prepares. We keep the two roles separate and manage the whole process around the audit: preparing audit-ready schedules, answering auditor queries, coordinating with your directors and making sure the signed financial statements arrive in time for the tax return and the annual return. For companies that qualify for the review option, we also support the lighter review engagement under ISRE 2400.

Corporate Tax Returns and Provisional Tax

We prepare and submit the corporate income tax return (TD4) through the Tax For All portal, calculate tax at the 15% corporate rate on taxable profit and apply available deductions, exemptions and loss relief. The 15% rate applies to companies that are tax resident in Cyprus, and from 2026 a company incorporated in Cyprus is automatically treated as Cyprus tax resident, unless a tax treaty provides otherwise. Our team also calculates provisional tax, settled in two equal instalments during the year, and revises the estimate where profits change, helping you avoid the additional 10% charge that applies where the provisional estimate falls below 75% of the final taxable income.

VAT Registration, Returns, VIES and OSS

Businesses must register for VAT once taxable supplies exceed €15,600 in a rolling 12-month period, or are expected to exceed it within the next 30 days, and many choose to register voluntarily sooner. We handle registration, quarterly VAT returns, monthly VIES recapitulative statements for intra-EU supplies, One Stop Shop (OSS) filings for cross-border sales and EORI registration for companies trading goods outside the EU. Each return is reconciled to the books before submission, which reduces the risk of penalties and queries from the Tax Department.

Payroll, Social Insurance and GHS

Our payroll service covers monthly salary calculations, payslips, PAYE withholding, social insurance plus General Healthcare System (GHS) contributions, and the monthly and annual TD7 employer declarations. We also issue certificates of emoluments for employees, register new employers with the relevant authorities and keep records ready for inspection.

Annual Return (HE32) and Registrar Filings

Every Cyprus company must hold an annual general meeting and file the annual return (HE32) with the Registrar of Companies, attaching the audited or reviewed financial statements. Highworth tracks the AGM cycle, prepares the HE32 and submits it on time, which matters because persistent non-filing can lead to penalties and, at worst, the company being struck off the register. If you rely on our corporate services, statutory registers, director changes and UBO filings are handled by the same team.

Does Every Cyprus Company Need an Audit?

Since the Companies Law amendment of 2022, small Cyprus companies have been able to opt for a review instead of a full audit, with a turnover limit of €200,000. An amendment approved in January 2026 raised that limit to €300,000. A company can now choose a review engagement under ISRE 2400 if, for two consecutive years, its net turnover does not exceed €300,000 and its total gross assets do not exceed €500,000, which is unchanged.

A review is a limited assurance engagement, still carried out by an ICPAC-licensed practitioner, so the financial statements must remain complete and IFRS compliant. However, a full audit is still required, or may be commercially advisable, even for a company within the thresholds, for example where the company:

• is a parent company that must prepare consolidated financial statements
• is supervised by the Central Bank of Cyprus, CySEC or the insurance supervisor, or holds a qualifying holding in such an entity
• is asked for audited accounts by a bank, investor or counterparty, which is a commercial rather than a legal requirement

Because eligibility depends on the specific facts of your company, we assess it at the start of each financial year and confirm which route applies before any work on the year-end begins.

What Changed for Cyprus Companies in 2026

The tax reform approved by the House of Representatives in December 2025 applies from 1 January 2026 and affects how almost every company plans its accounting year. The main changes for businesses are:

• Corporate income tax increased from 12.5% to 15%.
• Special Defence Contribution (SDC) on dividends paid to Cyprus tax resident and domiciled individuals fell from 17% to 5% for dividends paid out of profits earned from 2026. Dividends paid from profits earned before 2026 remain subject to 17%, under transitional rules for distributions made by the end of 2031. GHS contributions of 2.65% continue to apply to dividends, subject to the annual cap.
• The deemed dividend distribution rules were abolished for profits arising from 2026 onwards, although undistributed profits of 2024 and 2025 can still fall within the old rules.
• SDC on rental income has been abolished, and stamp duty no longer applies to corporate documents.
• Tax losses can now be carried forward for up to seven years, up from five.
• From the 2026 tax year, the corporate tax return and the final balancing tax payment move to 31 January of the second year after the tax year.
• New disguised dividend rules apply where shareholders use company assets privately or acquire them below market value, with SDC of 10% charged on those benefits for shareholders who are Cyprus tax resident and domiciled.
• A new 5% withholding tax applies to dividends paid to related companies in low-tax jurisdictions. Payments to jurisdictions on the EU list of non-cooperative jurisdictions continue to bear withholding tax of 17% on dividends and interest and 10% on royalties.
• The existing General Anti-Avoidance Rule (GAAR) now also covers individuals, and a new anti-avoidance rule applies to Special Defence Contribution. Every company incorporated in Cyprus is now Cyprus tax resident, unless a tax treaty provides otherwise.

These changes alter dividend planning, cash flow timing and the information directors need during the year, which is why we review each client’s position against the new rules rather than rolling forward last year’s approach.

Cyprus Accounting and Tax Compliance Calendar

Transitional dates apply to returns for 2025 and earlier years, and authorities occasionally extend deadlines, so we confirm the live date for every filing on each client’s calendar.

Who We Work With

Our accounting team supports a wide range of companies with a presence in Cyprus, including:

• International groups with a Cyprus subsidiary that needs local compliance alongside group reporting
• Holding companies receiving dividends, interest or capital gains, where the correct tax treatment matters as much as the bookkeeping
• Start-ups and newly formed companies, which we can onboard from day one, often straight after company formation
• Non-resident owners and directors who need a responsive local team and clear reporting in English
• Small and medium-sized businesses operating in Cyprus that want to outsource finance instead of building an in-house department
• Relocating professionals and employers who also use our immigration, recruitment and payroll services

How Our Accounting Engagement Works

1. Initial review. We look at your company’s activity, transaction volume, VAT status, payroll and any open filings, then confirm whether an audit or a review applies.
2. Proposal and onboarding. You receive a clearly defined scope and fee, followed by a document checklist and secure access to share records.
3. Ongoing compliance. We keep the books, file VAT, VIES and payroll returns, and flag issues as they arise rather than at year-end.
4. Year-end and audit. Our team prepares the IFRS financial statements and supporting schedules, then coordinates the audit or review with the independent auditor until sign-off.
5. Annual filings. We submit the tax return, settle the final tax position and file the HE32 with the Registrar of Companies.

Why Choose Highworth as Your Accountants in Cyprus

• An ICPAC practising certificate as an accounting firm (E896/G/2017), with chartered accountants on the team.
• One team for the whole compliance cycle, so bookkeeping, tax, payroll, corporate secretarial work and the audit process never fall between different providers.
• Up to date with the 2026 reform, including the new tax rate, revised deadlines and the review engagement thresholds.
• International perspective, supporting clients based in the UK, Europe, the Middle East and beyond who run Cyprus entities remotely.
• Clearly agreed scopes, set out upfront so you know what is covered and what each service costs.
• Based in Nicosia, with in-person meetings available and remote onboarding for clients anywhere.

Speak to Our Cyprus Accounting Team

Whether you need a full outsourced finance function, help catching up on overdue filings or a partner to coordinate this year’s audit, Highworth can take the compliance workload off your desk. Contact our team to arrange an initial review and receive a tailored proposal for your company.

The information on this page is general guidance on Cyprus accounting and tax obligations and does not constitute legal or tax advice. Rules and deadlines may change, and the treatment of any company depends on its individual circumstances.

Frequently Asked Questions

What do accounting services in Cyprus usually include?

A complete package normally combines bookkeeping, year-end accounts drawn up under IFRS, the company’s TD4 return and provisional tax, VAT and VIES submissions, payroll, and the HE32 filing. Many businesses add monthly management reporting and audit liaison, so a single provider looks after every step of the year.

Is an audit mandatory for Cyprus companies?

Companies above the review thresholds require a full audit signed by an ICPAC-licensed auditor. Following the January 2026 amendment, a company whose turnover does not exceed €300,000 (previously €200,000) and whose assets do not exceed €500,000 across two successive years may opt for a lighter review, unless it is supervised by the Central Bank, CySEC or the insurance supervisor, or is a parent company that must prepare consolidated accounts.

What is the corporate tax rate in Cyprus in 2026?

Company profits are taxed at 15% from the start of 2026, compared with 12.5% previously, and the rate applies to companies that are Cyprus tax resident. Advance instalments fall due at the end of July and the end of December, while for 2026 onward the final return and any remaining balance are payable by 31 January two years after the year closes.

When must a Cyprus company register for VAT?

Registration becomes compulsory when the value of taxable sales passes €15,600 over any twelve consecutive months, or when certain services are bought in from abroad. Businesses below that level may still register voluntarily, which often helps those wanting to recover input VAT or trade with EU customers.

What is the HE32 annual return?

The HE32 is a yearly declaration lodged with the Registrar of Companies confirming the company’s registered details, shareholders and officers. It is filed alongside the signed accounts within 28 days of its made-up date, which follows the AGM.

Can my company’s accountant also be its auditor?

Independence rules restrict how far an auditor can be involved in preparing the records and accounts it audits, so keeping the two roles separate is the cleanest approach. Highworth brings your records up to audit-ready standard and works directly with an independent licensed auditor until sign-off.

Can you take over accounting for a company that is behind on its filings?

Yes. We regularly onboard companies with outstanding bookkeeping, audits, tax returns or annual returns, prioritise whatever carries the greatest penalty or strike-off risk, and bring the company back to a normal routine as quickly as possible.

Can I manage my Cyprus company’s accounting remotely?

Yes. Most international clients work with us entirely online, sharing documents securely, approving submissions electronically and meeting by video call, while directors remain welcome at our Nicosia office whenever they prefer.