What is the corporate tax rate in Cyprus in 2026?

## The rate

Cyprus corporate income tax is 15% from 1 January 2026. The 2026 tax reform, voted on 22 December 2025, raised it from 12.5%. The rate applies to the worldwide taxable profit of Cyprus tax-resident companies.

## Which year uses which rate

Use 12.5% only for tax years up to and including 2025. The 2025 return is due on 31 March 2027, so both rates are in use while you file and plan. Most older sources, including professional-firm summaries, still show 12.5%, so check the date on anything you read.

## Losses

Tax losses can be carried forward for 7 years from 2026, extended from 5 years. Group relief is available between Cyprus tax-resident group companies for current-year losses.

## Dividends and the wider reform

Special Defence Contribution on dividends to domiciled residents fell to 5%, and deemed dividend distribution is abolished for 2026 profits. Those changes affect how much the owner takes home, alongside the company rate.

## What Finn does

Finn estimates tax at 15% on adjusted profit for 2026, keeps 12.5% for 2025, and flags the provisional tax instalments on 31 July and 31 December.