Cyprus Accounting Questions Answered

What is the corporate tax rate in Cyprus in 2026?

The Cyprus corporate income tax rate is 15% from 1 January 2026. The rate was 12.5% for tax years up to and including 2025, so the 2025 return is still taxed at 12.5%.

What changed in the 2026 Cyprus tax reform?

From 1 January 2026, corporate tax rose to 15%, SDC on dividends fell to 5%, deemed dividend distribution was abolished for new profits, SDC on rents and stamp duty were abolished, and losses can be carried forward 7 years.

When is the Cyprus corporate tax return due?

The TD4 is due 15 months after the tax year end, which is 31 March of the second following year for calendar-year companies. The final tax payment is due earlier, on 1 August of the following year.

How does provisional tax work in Cyprus?

Companies pay provisional tax on estimated current-year profit in two equal instalments on 31 July and 31 December. The estimate can be revised until 31 December. A 10% surcharge applies if it proves to be below 75% of final taxable income.

How much tax do Cypriot directors pay on dividends?

From 1 January 2026, domiciled Cyprus tax residents pay 5% SDC on actual dividends, down from 17%. Non-domiciled residents pay 0% SDC. GESY of 2.65% also applies to dividend income within the €180,000 annual cap.

When are Cyprus VAT returns due?

Cyprus VAT returns are quarterly on form TD 1004. Payment is due by the 10th day of the second month after the quarter, so the quarter ending 31 March is payable by 10 May.

Do I need to register for VAT in Cyprus?

Register for VAT when taxable turnover exceeds €15,600 in the preceding 12 months, or is expected to exceed it in the next 30 days. Voluntary registration below the threshold is allowed.

What is the HE32 annual return in Cyprus?

The HE32 is the annual return filed with the Registrar of Companies within 28 days of the company's annual-return date, with financial statements attached. The fee is €20, and late filing costs €50 plus €1 a day, capped at €150.

Is the €350 annual company levy still payable in Cyprus?

No. The €350 annual company levy was abolished from 2024 onwards. Do not pay it for 2024 or later. Arrears for 2011 to 2023 remain due.

What are the employer payroll contributions in Cyprus?

In 2026 employers pay social insurance at 8.8%, GESY at 2.90%, the Redundancy Fund at 1.2%, the Industrial Training Fund at 0.5% and the Social Cohesion Fund at 2.0%. Employees pay 8.8% and 2.65%.