ABOUT ELSAVCO
Who is Elsavco Audit & Tax?
Elsavco is a Nicosia-based firm of certified public accountants, established in January 2019 and registered with ICPAC (reg. no. E1067/A/2018). We provide audit, tax, VAT, accounting, transfer pricing, payroll and advisory services in Cyprus and internationally, and are a member of the Antea alliance of independent firms.
Is Elsavco a regulated firm?
Yes. Elsavco is registered with the Institute of Certified Public Accountants of Cyprus (ICPAC), registration number E1067/A/2018, and our partners are ACCA members.
AUDIT
Do all companies in Cyprus need an audit?
Almost all Cyprus companies must have their financial statements examined by a licensed statutory auditor and filed with the annual return (HE32). For financial years beginning on or after 6 February 2026, very small companies (turnover below €300,000 and total assets below €500,000 for two consecutive years) may opt for a limited review engagement under ISRE 2400 instead of a full audit. We advise which route applies and generally recommend a full audit.
What auditing standards do you follow?
Audits are performed under International Standards on Auditing (ISAs), with financial statements prepared under IFRS.
CORPORATE TAX
What is the corporate tax rate in Cyprus?
15% from 1 January 2026, increased from 12.5% under the 2026 tax reform.
When is Cyprus corporate tax paid?
During the year through temporary (provisional) tax in two instalments, by 31 July and 31 December of the tax year, with any remaining balance payable by 31 January of the second year following the tax year (for tax year 2026, by 31 January 2028).
When is the corporate tax return due?
By 31 January of the second year following the tax year, following the 2026 reform.
SPECIAL DEFENCE CONTRIBUTION (SDC)
What is Special Defence Contribution (SDC) in Cyprus?
SDC is a Cyprus tax on certain passive income, dividends, interest and (until 2025) rental income, received by individuals and companies that are both Cyprus tax resident and domiciled. Non-domiciled residents are exempt from SDC on dividends and interest.
How did the 2026 reform change SDC?
For Cyprus tax-resident and domiciled individuals, SDC on dividends was reduced from 17% to 5% (on profits earned from 1 January 2026; dividends paid from older profits keep the 17% rate on a transitional basis). SDC on interest remains 17% (3% on certain Cyprus and EU government bonds), and rental income is no longer subject to SDC. The deemed dividend distribution (DDD) rules were abolished for profits earned from 1 January 2026, with transitional rules for earlier years.
VAT
When must I register for VAT in Cyprus?
VAT registration is compulsory once taxable turnover exceeds €15,600 in any 12-month period. It is also required regardless of turnover in certain cases, for example intra-Community acquisitions of goods above the annual limit (€10,251.61), receiving services from abroad under the reverse charge, or supplying services to VAT-registered businesses in other EU member states (which also requires VIES reporting). Businesses below the threshold may register voluntarily. The standard VAT rate is 19%.
INDIVIDUALS MOVING TO CYPRUS
What is non-domiciled (non-dom) status?
A non-domiciled Cyprus tax resident is exempt from Special Defence Contribution on dividends and interest for up to 17 years.
Can I keep the non-dom SDC exemption after 17 years?
Yes, under the 2026 reform (Article 3D), individuals without a Cyprus domicile of origin can elect to pay a fixed €250,000 (over five years) to extend the SDC exemption, for up to two five-year periods. We assess whether this is cost-effective for you.
How can I become a Cyprus tax resident under the 60-day rule?
You can be Cyprus tax resident with at least 60 days in Cyprus if, in the same year, you are not tax resident elsewhere, do not spend more than 183 days in any other single country, and you carry on business, are employed or hold an office in Cyprus and maintain a permanent home here.
How is a foreign pension taxed in Cyprus?
You can elect a flat 5% on the pension income above €5,000 per year (the first €5,000 is tax-free), or the normal progressive rates, whichever is lower, chosen each year.
IP BOX AND TRANSFER PRICING
What is the effective tax rate under the Cyprus IP Box?
Around 3%: 80% of qualifying IP profit is deducted, so only the remaining 20% is taxed at the 15% corporate rate. We also obtain IP Box tax rulings from the Cyprus Tax Department.
Do I need transfer pricing documentation in Cyprus?
If your company has intra-group transactions, a Local File is required once a category exceeds the 2026 thresholds — broadly €5 million for goods, €10 million for financing and €2.5 million for other categories — with a Master File for larger groups. Below the thresholds, a simplified documentation approach applies under the Cyprus Tax Department circular (Circular 6/2023). We assess which applies and prepare the documentation.
WORKING WITH US
Can you help international clients relocating to Cyprus?
Yes. We advise on residency, non-dom status and personal tax for individuals relocating to Cyprus, and coordinate cross-border matters through the Antea international network. Client service is provided in English, with Hebrew-language support available through an associate.
Disclaimer: The answers on this page are general summaries provided for information only and reflect Cyprus tax law following the 2026 tax reform. They are not advice and should not be relied upon for any decision. Tax treatment depends on your individual circumstances, and the law may change. Please contact us for advice tailored to your situation.