Cyprus Accounting & Tax Glossary
12 Cyprus-specific terms explained in plain English. Every entry cites Tax Department (Τμήμα Φορολογίας), Ministry of Finance or Department of Registrar of Companies and Intellectual Property (DRCIP).
Corporate Income Tax (Cyprus)
Corporate income tax is charged on the worldwide taxable profit of Cyprus tax-resident companies. The rate is 15% from 1 January 2026, up from 12.5% for tax years up to and including 2025.
Deemed Dividend Distribution (DDD)
Deemed dividend distribution was a rule treating a company as distributing 70% of its accounting profits two years after the year end. It is abolished for profits earned from 1 January 2026.
Non-Domicile Regime
Cyprus tax residents who are not domiciled in Cyprus are exempt from Special Defence Contribution on dividends and interest for 17 years of residence.
Provisional (Temporary) Tax
Provisional tax is paid by companies and self-employed persons on estimated current-year profit, in two equal instalments on 31 July and 31 December.
Special Defence Contribution (SDC)
Special Defence Contribution is a tax on certain passive income received by Cyprus tax-resident and domiciled individuals. From 1 January 2026 the rate on actual dividends is 5%, down from 17%.
VAT (Cyprus)
Cypriot VAT has a 19% standard rate, reduced rates of 9% and 5%, a 0% zero rate and a registration threshold of €15,600 of taxable turnover.
GESY (National Health System)
GESY is Cyprus's national health system. Contributions are 2.90% from employers and 2.65% from employees, collected through payroll on income up to €180,000 a year per person.
Social Insurance (Cyprus)
Cypriot social insurance is 8.8% from the employer and 8.8% from the employee on insurable earnings, and 16.6% for the self-employed. Insurable earnings are capped at €5,742 a month in 2026.
HE32 (Annual Return)
The HE32 is the annual return every Cypriot company files with the Registrar of Companies, within 28 days of its annual-return date, with the previous year's financial statements attached.
Private Limited Company (Ltd)
The Cypriot Ltd is the standard SME company form. It has between 1 and 50 members, no minimum share capital and cannot offer shares to the public.
Tax Identification Code (TIC)
The TIC is the Cypriot tax identifier for individuals and companies. It has 8 digits followed by one capital check letter, and the VAT number is the TIC with a CY prefix.
TD4 (Corporate Tax Return)
The TD4 is the annual corporate income tax return for Cypriot companies. It is due 15 months after the tax year end and filed electronically.