Cyprus Corporate Tax
Updated
Our fee and working time for one financial year, tax return included
From €1,200 usually 20–40 working daysGovernment fees are paid separately at cost and are listed below with their source. Indicative prices; the final quote depends on your case.
- Bookkeeping for the financial year
- Financial statements
- Corporate tax return
| Fact | Value |
|---|---|
| Corporate income tax | 15%167 |
| Tax loss carry-forward | 7 years112 |
| Double tax treaties listed | 725 |
| Facts checked on | |
We usually reply within one business day.
Cyprus charges 15% corporate income tax on company profits for tax years from 1 January 2026, under Income Tax (Amending) Law N. 244(I)/2025. The same law made every company incorporated in Cyprus tax resident here unless a tax treaty says otherwise, which matters if you are moving a company’s residence. We prepare and file your company’s corporate tax return as part of annual accounting.
Key facts
Cyprus company tax at a glance
15% on profit, 0% withholding on dividends paid abroad under domestic law, losses usable for 7 years. Each line was checked on 25 September 2026 against the source named next to it.
| No. | Item | Value | Source |
|---|---|---|---|
| 1.1 | Corporate income tax | 15% | 167 |
| 1.2 | Dividend withholding tax | 0% | 8 |
| 1.3 | Deemed dividend distribution on profits from 2026 | No | 4 |
| 1.4 | Tax loss carry-forward | 7 years | 112 |
| 1.5 | Stamp duty | 0% | 9 |
| 1.6 | IP box: deduction of qualifying profit | 80% | 13 |
| 1.7 | Notional interest deduction: cap on taxable profit | 80% | 13 |
| 1.8 | Tonnage tax regime runs until | 31 December 2029 | 6 |
| 1.9 | Double tax treaties listed | 72 | 5 |
Figures checked
Tax residency
Moving a company’s tax residence to Cyprus
Since 1 January 2026 a company has two routes to Cyprus tax residence: management and control in Cyprus, or incorporation or re-domiciliation here. A treaty with the other country can override both, and that is where most residence claims stall.
Individuals: more than 183 days in Cyprus in the calendar year, or the 60-day rule. Companies: managed and controlled in Cyprus, or (from 1 Jan 2026) incorporated or re-domiciled in Cyprus unless a tax treaty provides otherwise.
Is a company incorporated in Cyprus automatically resident?
We are re-domiciling a foreign company. When does Cyprus treat it as resident?
Why do residence claims for companies get stuck?
Three gaps come up. Board meetings are held, or decisions are signed, in the other country, so management and control points there. There is no treaty with that country, so nothing settles a double claim. Or the file shows no substance in Cyprus: no local director, no minutes, no bank account run from here. We close these by moving board meetings and minutes to Cyprus and documenting who decides where before the application.
Will the company be taxed twice?
Not where a treaty applies. The Ministry of Finance lists 72 double tax treaties, 69 of them with an entry-into-force date. Owners from the UK and other treaty countries check that list first; the treaty with your country decides which state taxes the company.
The information on this site is general and is not legal advice for your specific situation. Whether a specific company is resident in Cyprus, and what it owes, is assessed in an individual consultation.
Rates
Cyprus tax rates for companies
The Cyprus corporate tax rate is 15% for tax years from 1 January 2026, checked on 25 September 2026. VAT sits beside it at 19%, with registration compulsory above €15,600 of taxable supplies. The top personal band of 35% matters to owners who pay themselves a salary rather than dividends.
Facts checked on
Corporate income tax15%
What else the reform changed for companies
Standard corporate income tax is 15% from tax year 2026 (12.5% for 2025 and earlier), under Income Tax (Amending) Law N. 244(I)/2025 in force from 1 Jan 2026. The same reform: companies incorporated in Cyprus are tax resident by incorporation (in addition to the management-and-control test) unless a tax treaty says otherwise; tax losses can be carried forward 7 years instead of 5; crypto-asset gains of individuals are taxed at a flat 8%; the deemed dividend distribution rule is abolished for profits of 2026 onwards (profits up to 2025 stay in the old regime); stamp duty is abolished. Dividends received by a Cyprus company are generally exempt from corporate tax. Pillar Two domestic minimum top-up tax applies to in-scope groups from 31 Dec 2024. IP box and notional interest deduction remain available.
Dividend withholding tax0%
Standard VAT rate19%
VAT registration threshold€15,600
Top personal income tax rate35%
Company-side figures changed or kept by the reform
Rates changed onTax reform in force (Income Tax (Amending) Law N. 244(I)/2025 and related laws, gazetted 31 Dec 2025): CIT 15%, tax-free threshold EUR 22,000, SDC on dividends for domiciled individuals 5%, deemed dividend distribution abolished for 2026+ profits, non-dom extension for EUR 250,000 per 5 years, 60-day rule relaxed, incorporation test for company residency, 8% tax on crypto gains, 7-year loss carry-forward, stamp duty abolished.
These are statutory rates, not your bill. What a specific company pays depends on its profit, deductions, residence and group structure; we calculate that only in an individual consultation, never on this page.
Get a quote for the tax returnSpecial regimes
IP box, NID and other company regimes
The Cyprus IP box deducts 80% of qualifying profit, so at the 15% rate the minimum effective tax is (100% − 80%) × 15% = 20% × 15% = 3%. That is a floor, not a promise: when the nexus fraction is below 1, the rate goes up. Our reference lists 7 regimes; the company ones are the IP box, notional interest deduction and tonnage tax.
IndividualsNon-domiciled (non-dom) statusDefence contribution on dividends0%
Changed
Cyprus tax residents who are not Cyprus-domiciled pay no Special Defence Contribution (SDC) on dividends, interest and (until 2025) rent, worldwide. Someone without a Cyprus domicile of origin becomes deemed domiciled after being tax resident for at least 17 of the last 20 years. From 2026 the status can be extended for up to two 5-year periods by paying a lump-sum SDC of EUR 250,000 per period (EUR 50,000 a year), on application to the Tax Commissioner by 30 June of the first year of each period; the choice is irrevocable and the amount is non-refundable.
| Defence contribution on dividends | 0% |
|---|---|
| Resident years before deemed domicileTax resident for at least 17 of the 20 years preceding the tax year = deemed domiciled; status kept until 20 years (not necessarily consecutive) of non-residence. | 17 years |
| Lump sum per extension periodPer 5-year extension period (EUR 50,000 per year), maximum two periods; paid by the end of the month after the application is approved. | €250,000 |
Suits
Company owners who become Cyprus tax resident without a Cyprus domicile of origin and take profit as dividends.
Who this is not for
Owners with a Cyprus domicile of origin, and long-term residents already deemed domiciled.
Legal basisSpecial Contribution for the Defence (Amending) (No. 4) Law of 2025 - Tax Department presentation4
Individuals60-day tax residency ruleMinimum days in Cyprus60 days
Changed
An individual becomes Cyprus tax resident without 183 days if in the same year they stay in Cyprus at least 60 days, do not reside in any other single state for more than 183 days, carry on a business or are employed/hold an office in Cyprus (or with a Cyprus-resident person) at any time in the year, and maintain a permanent home in Cyprus (owned or rented). From 1 Jan 2026 the condition 'not tax resident in any other state' was removed.
| Minimum days in Cyprus | 60 days |
|---|---|
| Maximum days in any other single state | 183 days |
Suits
Directors who split the year between countries and keep a home and a role in a Cyprus company.
Who this is not for
Anyone over the limit in one other state, or without a Cyprus job, business or home.
Legal basisIncome Tax (Amending) Law N. 244(I)/2025 - Tax Department presentation1
CompaniesIP box (modified nexus)Deduction of qualifying profit80%
A notional deduction of 80% of qualifying profits from qualifying intellectual property (patents, copyrighted software, certain innovative assets; not trademarks), scaled by the modified nexus fraction. The old (non-nexus) IP regime closed on 30 June 2016 with grandfathering until 30 June 2021.
| Deduction of qualifying profit | 80% |
|---|---|
| Minimum effective rate: (100% − 80%) × 15% = 20% × 15% = 3%Derived: 20% of qualifying profit taxed at 15% CIT = 3% from 2026 (2.5% at the former 12.5% rate). Minimum effective rate; actual rate is higher when the nexus fraction is below 1. | 3% |
Suits
Companies that develop patents or copyrighted software themselves and earn from them.
Who this is not for
Trademark income, and IP bought in rather than developed in-house: the nexus fraction cuts the deduction.
Legal basisCyprus - Corporate - Tax credits and incentives13secondary source
IndividualsEmployment income exemptions for new residents (50% / 20% / 25%)Pay needed for the larger exemption€55,000/year
50%: first employment in Cyprus from 1 Jan 2022, annual remuneration over EUR 55,000, not Cyprus resident for at least 15 consecutive years before the employment; lasts 17 years. 20%: capped at EUR 8,550 a year, for individuals who were not resident for at least 3 consecutive years before the employment and were employed abroad by a non-resident employer; 7 years; not combinable with the 50% exemption. 25%: capped at EUR 25,000 a year, for 2025-2030, for returning residents earning over EUR 30,000 in the first 12 months after 7 years of non-residence; 7 years. The 2026 reform presentation of the Tax Department does not list any change to these exemptions.
| Pay needed for the larger exemptionAnnual remuneration from the Cyprus employment must exceed EUR 55,000. No change to this threshold is shown in the Tax Department 2026 reform presentation; figure itself from a secondary source. | €55,000/year |
|---|---|
| Larger exemption lasts | 17 years |
Suits
Staff your company hires into their first Cyprus job after years abroad.
Who this is not for
People who were Cyprus resident in the years just before the job.
Legal basisCyprus - Individual - Income determination14secondary source
CompaniesNotional interest deduction (NID)Cap on the deduction, share of taxable profit80%
Companies may deduct notional interest on new equity introduced after 31 Dec 2014 used in the business. The NID rate is set by reference to 10-year government bond yields plus a 5% premium (from 1 Jan 2020). The NID cannot exceed 80% of the taxable profit generated by the new equity; unused NID is not carried forward.
| Cap on the deduction, share of taxable profit | 80% |
|---|---|
| Premium over the government bond yieldAdded to the reference 10-year government bond yield (from 1 Jan 2020). | 5% |
Suits
Companies funded with new equity instead of shareholder loans.
Who this is not for
Loss-making companies: the deduction is capped at 80% of the profit the new equity generates, and an unused amount is not carried forward.
Legal basisCyprus - Corporate - Tax credits and incentives13secondary source
CompaniesTonnage taxRegime runs until
Qualifying ship owners, charterers and ship managers pay tonnage tax based on the net tonnage of the vessels instead of corporate income tax on qualifying shipping profits. Compulsory for Cyprus-flag ship owners, optional for others; the regime runs until 31 Dec 2029, with up to 30% lower tonnage tax for environmentally friendly vessels.
| Regime runs until |
|---|
Suits
Ship owners, charterers and ship managers with qualifying vessels.
Who this is not for
Any business outside shipping. Plan past 31 December 2029 only once an extension is published.
Legal basisCyprus - Corporate - Taxes on corporate income6secondary source
IndividualsCrypto-asset gains of individuals (flat 8%)Flat rate on gains8%
Changed
From 1 Jan 2026 individuals' gains from crypto-asset transactions are taxed at a flat 8% under the new Article 20E of the Income Tax Law (mining excluded).
| Flat rate on gains | 8% |
|---|
Suits
Individuals who sell or exchange crypto-assets; a company’s crypto gains stay in corporate tax.
Who this is not for
Mining income, which the rule excludes.
Legal basisIncome Tax (Amending) Law N. 244(I)/2025 - Tax Department presentation1
Whether a regime applies to your company, and what it saves, is assessed in an individual consultation. The IP box figure above is a floor computed from two published figures, not a calculation of your tax.
Rates on your own income as an ownerProfit taxed at 15% from 2026: want a quote for your company’s return?
From €1,200 usually 20–40 working daysYou get a written quote, the list of records we need and the date we file the return. Our part usually takes 20–40 working days.
Government fees are paid separately at cost and are listed below with their source.
We usually reply within one business day.
FAQ
Cyprus corporate tax: short answers
What is the corporate tax rate in Cyprus in 2026?
15%, for tax years from 1 January 2026. 15% from 1 January 2026 (was 12.5% until tax year 2025). Income Tax (Amending) Law N. 244(I)/2025, approved by Parliament on 22 Dec 2025, published in the Official Gazette on 31 Dec 2025.
What changed in the Cyprus tax reform 2026 for companies?
Four things touch most companies. The rate rose to 15%. Losses now carry forward for 7 years. Deemed dividend distribution no longer applies to profits from 2026: Abolished for profits of tax year 2026 onwards; profits up to 2025 remain subject to the old rules (transitional SDC payments due until 31 Dec 2028/2029). Stamp duty went to 0%. Residence by incorporation is covered in the residency section above.
How is the 3% IP box rate worked out?
From two published figures. The IP box deducts 80% of qualifying profit, and the rest is taxed at 15%: (100% − 80%) × 15% = 20% × 15% = 3%. With a nexus fraction below 1 the deduction shrinks and the rate rises.
Is Cyprus a tax haven?
No. Its corporate rate is 15%, it runs 72 listed double tax treaties, and the reference records that the Pillar Two domestic minimum top-up tax applies to in-scope groups. The lower effective rates come from named regimes such as the IP box, each with conditions.
Does Cyprus withhold tax on dividends paid to foreign shareholders?
Under domestic law, 0%. The exceptions are specific: No WHT on dividends, interest or royalties paid to non-residents under domestic law (royalties for rights used in Cyprus: 10%). Exceptions: 17% WHT on dividends and interest to companies in EU-blacklisted jurisdictions; from 1 Jan 2026, 5% WHT on dividends to related companies in low-tax jurisdictions (quoted companies excepted, conditions apply).
Can I get a Cyprus tax residency certificate for my company?
Yes, from the Tax Department, once the company meets the residence rule: management and control in Cyprus, or incorporation or re-domiciliation here from 1 January 2026. We prepare the application and the board records behind it; our tax residency package starts at €500.
Is there a double tax treaty between Cyprus and the UK?
Check the Ministry of Finance list of 72 treaties linked in the sources below; 69 of them show an entry-into-force date. We read the treaty for your country before we file anything.
Can you calculate my company’s Cyprus tax?
Not on this page. A calculation needs your accounts, deductions and group structure, so it is an individual consultation. We prepare and file the return itself with annual accounting from €1,200.
Request
Tell us about your company
Say where the company is incorporated, where its directors sit and which tax year you need filed. We answer with a quote and the records we need.
Package for this request
Annual accounting and tax return
From €1,200 usually 20–40 working days- Bookkeeping for the financial year
- Financial statements
- Corporate tax return
Government fees are paid separately at cost and are listed below with their source.
- We usually reply within one business day.
- We send a quote and the list of records for your tax year.
- You accept and upload the records; we file the return and send you the receipt.
Facts checked on against 5 primary sources
ScopeEvery rate and date on this page was compared with the source named next to it. The IP box rate of 3% is computed from two of those figures. The check covers published rates, not the tax position of your company.
- Corporate income tax
- Dividend withholding tax
- Standard VAT rate
- Tax residency
Sources
14Primary 5 · Checked on
- 1Tax Department, Ministry of Finance of CyprusGovernmentIncome Tax (Amending) Law N. 244(I)/2025 - Tax Department presentation
- 2Department of Registrar of Companies and Intellectual PropertyGovernmentAfter Incorporation
- 3Tax Department, Ministry of Finance of CyprusGovernmentExplanatory guide on the 2026 tax reform for individuals who are Cyprus tax residents (version 11/05/2026)
- 4Tax Department, Ministry of Finance of CyprusGovernmentSpecial Contribution for the Defence (Amending) (No. 4) Law of 2025 - Tax Department presentation
- 5Ministry of Finance of CyprusGovernmentDouble Tax Treaties
- 6PwC Worldwide Tax SummariesSecondaryCyprus - Corporate - Taxes on corporate income
- 7HarneysSecondaryA new era for Cyprus taxation: the key insights of the 2026 Cyprus tax reform
- 8PwC Worldwide Tax SummariesSecondaryCyprus - Corporate - Withholding taxes
- 9PwC Worldwide Tax SummariesSecondaryCyprus - Corporate - Other taxes
- 10PwC Worldwide Tax SummariesSecondaryCyprus - Individual - Taxes on personal income
- 11PwC Worldwide Tax SummariesSecondaryCyprus - Individual - Residence
- 12PwC Worldwide Tax SummariesSecondaryCyprus - Corporate - Deductions
- 13PwC Worldwide Tax SummariesSecondaryCyprus - Corporate - Tax credits and incentives
- 14PwC Worldwide Tax SummariesSecondaryCyprus - Individual - Income determination
How we choose sources and how often we re-check them is set out in our Editorial policy