NACE Code Updates in Cyprus for 2025 Compliance

Every company in Cyprus must ensure that its economic activities are correctly classified according to the NACE system. With the introduction of the Delegated Regulation (EU) 2023/137, the European Union has updated the framework governing how Member States collect, transmit, and publish statistical data. In Cyprus, the Statistical Service (CYSTAT) is responsible for this classification.

Although the regulation is binding across the EU, it primarily affects national authorities. For companies, the key obligation is to ensure their economic activities are correctly classified and consistent across all government bodies.

What does the regulation (EU) 2023/137 introduce?

From 1 January 2025, the updated NACE Rev. 2.1 replaces the current NACE Rev. 2, harmonising Cypriot classifications with the international ISIC Rev. 5 system. The change improves comparability across EU Member States but does not introduce new direct duties for private companies.

CYSTAT remains responsible for assigning and updating NACE codes. Its data collection supports Cyprus’s statistical reporting to the European Commission under the Official Statistics Law 25(I)/2021.

Do companies have any obligations under this framework?

Businesses must cooperate with any data requests from CYSTAT, such as surveys or questionnaires, within the stated deadline. This cooperation is mandatory under national law.

Companies must also ensure that their registered activity is the same across:

• the Registrar of Companies
• the Tax Department (for VAT purposes)
• and the Social Insurance Services

This consistency avoids discrepancies between statistical, tax, and employment data.

How sto confirm your NACE code?

The main economic activity, meaning the one generating the most turnover or employment, determines the company’s NACE code. Companies can confirm or update their classification through CYSTAT’s guidance or by requesting a Certificate of Economic Activity, which provides official verification of the code in use.

When business operations evolve, the classification should be reviewed to ensure continued accuracy. Financial statements and annual reports should reflect the same activity for coherence with state records.

What will change after 2025?

The updated classification (NACE Rev. 2.1) will apply to statistical data transmitted from 1 January 2025. This update does not automatically require companies to change their activity codes, but businesses should monitor updates from CYSTAT to ensure that future filings and registrations remain consistent with the revised standard.

Keeping the same activity code across all state registrations, Registrar, Tax, and Social Insurance, remains the key compliance point. Companies should also review their financial statements to confirm that the declared activities align with their official classification.

Why consistency matters?

Accurate classification is more than an administrative detail. It ensures that a company’s statistical, tax, and financial data remain coherent across all official records. Inconsistencies may lead to unnecessary queries from authorities, complications in data collection, or delays in processing registrations.

Beyond compliance, a correctly assigned NACE code also ensures proper representation in national and EU statistics, which can influence future economic policymaking and business sector analysis.

What’s Next?

Managing activity classification and ensuring cross-agency consistency requires careful attention and regular updates. For insights into how other jurisdictions implement the new NACE Rev. 2.1 standard, explore our article Denmark Adopts DB25 under NACE Rev. 2.1.

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