Cyprus has officially transposed the Corporate Sustainability Reporting Directive (CSRD) into national law as of 29 July 2025, aligning with EU requirements. The implementation is structured in three waves, with staggered reporting obligations depending on company size and type. Here’s a breakdown of the phase-in timeline for CSRD reporting in Cyprus:
Wave 1: Reporting for FY 2025
Applies to companies previously under the Non-Financial Reporting Directive (NFRD):
- Large public-interest entities with >500 employees
- Parent companies of large groups exceeding 500 employees on a consolidated basis
- These entities must submit sustainability reports for the 2025 financial year, with options for transitional reporting in 2024.
Wave 2: Reporting for FY 2027
Applies to:
- Other large companies not covered in Wave 1
- Parent companies of large groups not covered in Wave 1
- These entities begin reporting for financial years starting on or after 1 January 2027.
Wave 3: Reporting for FY 2028
Applies to:
- SMEs listed on regulated markets (excluding micro-enterprises)
- Small and non-complex institutions (if they qualify as large companies or listed SMEs)
- Captive insurance and reinsurance undertakings
- Reporting begins for financial years starting on or after 1 January 2028.
Additional Notes
- The “Stop-the-Clock” Directive allows certain companies a two-year delay in reporting deadlines.
- Companies must prepare reports in electronic format, subject to external assurance, similar to financial audits.
- The Institute of Certified Public Accountants of Cyprus (ICPAC) has issued guidance and FAQs to support entities in navigating CSRD compliance.