Who NIS2 covers
The NIS2 Directive (EU) 2022/2555 generally applies when all three are true (Art 2):
- you provide services or carry out activities in the EU;
- your sector is listed in Annex I (high criticality: energy, transport, banking, health, digital infrastructure, ICT service management including MSPs and MSSPs, and others) or Annex II (other critical sectors such as postal, waste, manufacturing and digital providers); and
- you are at least medium-sized: 50 or more staff, or turnover above EUR 10 million.
Some are in scope regardless of size, including DNS service providers, TLD registries, trust service providers, public electronic communications providers and central-government public administration.
Essential or important?
Large entities (250 or more staff, or turnover above EUR 50 million) in Annex I sectors are generally essential, as are some providers of any size. Every other in-scope entity is important. Essential entities face proactive supervision; important entities are supervised after the fact. Both carry the same core security and reporting duties.
What NIS2 requires
- Cybersecurity risk-management measures, approved and overseen by the management body, whose members must take training and can be held liable (Art 20-21).
- Incident reporting for significant incidents (Art 23): an early warning within 24 hours, an incident notification within 72 hours, and a final report within one month.
- Supply chain security, including your MSPs and other service providers.
Fines
| Entity | Maximum fine, at least (whichever is higher) |
|---|---|
| Essential | EUR 10 million or 2% of worldwide annual turnover |
| Important | EUR 7 million or 1.4% of worldwide annual turnover |
These are the minimum maximums the Directive requires; each member state sets the actual rules in its national law, so check the law of the countries you operate in. The checker above uses staff and turnover only, not the balance-sheet test. For non-EU firms serving EU clients, see offshore cybersecurity services.
Sources
Facts checked against the sources above on 22 October 2026. General information, not legal advice.
