Cyprus Tax Changes: Live Tracker

What changed

The 2026 tax reform, voted on 22 December 2025, raised the corporate income tax rate from 12.5% to 15% from 1 January 2026. The rate applies to the worldwide taxable profit of Cyprus tax-resident companies. Use 12.5% only for tax years up to and including 2025.

Who it affects

• All Cyprus tax-resident companies
• Companies filing the 2025 return during 2026 and 2027
• Directors modelling profit for 2026

What to do

Update tax estimates to 15% for 2026 profits, keep 12.5% for the 2025 return, and review provisional tax estimates against the 75% test.

What changed

SDC on actual dividends paid to Cyprus tax-resident and domiciled individuals fell from 17% to 5% for distributions out of post-2026 profits. Non-domiciled residents remain exempt. SDC on passive interest stays at 17%. GESY of 2.65% also applies to dividend income within the €180,000 cap.

Who it affects

• Director-shareholders paid by dividend
• Domiciled Cyprus residents
• Non-domiciled residents, who remain exempt

What to do

Review the mix of salary and dividends for 2026 and confirm domicile status with a licensed practitioner.

What changed

Companies are no longer deemed to distribute 70% of accounting profits two years after the year end, for profits earned from 1 January 2026. As a transitional rule, deemed distribution continues to apply to undistributed 2024 and 2025 profits until 31 December 2027.

Who it affects

• Companies holding undistributed 2024 and 2025 profits
• Director-shareholders planning distributions
• Advisers reviewing reserves

What to do

List undistributed profits by year and plan distributions of the 2024 and 2025 vintages before 31 December 2027.

What changed

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

Who it affects

• Loss-making start-ups
• Groups with Cyprus subsidiaries
• Companies with recent losses

What to do

Keep a loss schedule by year with the expiry date for each, using the period that applies to each loss.

What changed

Stamp duty is abolished for documents from 1 January 2026, and documents dated before that date remain under the old regime. SDC on rental income is abolished for individuals and companies. Crypto-asset profits are taxed separately at 8% on net profit from the same date.

Who it affects

• Businesses signing contracts in 2026
• Landlords
• Holders of crypto-assets

What to do

Stop budgeting stamp duty on new contracts, and keep acquisition and disposal records for any crypto-assets.

What changed

From tax year 2026, personal income tax is 0% up to €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above. The previous bands, 0% to €19,500, 20% to €28,000, 25% to €36,300, 30% to €60,000 and 35% above, still apply to 2025 filings. From 2026 all Cyprus tax residents aged 25 to 70 must file a return regardless of income, through the Tax For All portal.

Who it affects

• Directors paid a salary
• Cyprus tax residents aged 25 to 70
• Anyone filing the 2025 return

What to do

File the return through Tax For All even if income is low, and use the old bands for 2025.