Cyprus tax for companies: 15% since 2026, and what reaches you
A Cyprus company pays 15% corporate tax on its profit from 2026, up from 12.5%. Dividends it pays to an owner living outside Cyprus are free of Cyprus tax.
Since 2026 a company formed in Cyprus is tax resident there unless a tax treaty says otherwise, and the return for 2026 is due on 31 January 2028.
Cyprus rewrote its tax laws on 31 December 2025, and much of what ranks for "Cyprus tax" still shows the old numbers. Here's the 2026 version, read from the amending laws themselves, with the one question most guides skip: what happens to the money on its way to an owner who lives somewhere else.
Key takeaways
- Corporate tax is 15% from 1 January 2026; profits up to 2025 stay at 12.5%.
- An owner living abroad pays no Cyprus tax on dividends. An owner company in a low tax place can pay 5%.
- A Cyprus company is tax resident in Cyprus unless a treaty gives it to another country.
- Stamp duty is gone and losses now carry forward seven years.
- The 2026 return and final payment are due 31 January 2028; provisional tax stays at 31 July and 31 December.
- Move to Cyprus yourself and, as a non-dom, dividends stay tax free for up to 17 years.
Cyprus tax reform 2026: before and after
Three laws published on 31 December 2025 changed the rates, the defence contribution on dividends and the deadlines. For an owner abroad, only the first line changes what you pay.
| Up to 2025 | From 2026 | |
|---|---|---|
| Corporate tax | 12.5% | 15% |
| Dividends to a Cyprus domiciled resident | 17% | 5% |
| Deemed dividend on kept profit | 70% after two years | Ended for new profit |
| Interest earned by a company | Often 17% defence contribution | 15% corporate tax |
| Losses carried forward | 5 years | 7 years |
| Stamp duty | Up to EUR 20,000 a document | Abolished |
| Return and final payment | 31 March and 1 August | Both 31 January, second year after |
One rate went up, the dividend tax for residents came down, and stamp duty went away.
Cyprus corporate tax rate and dividends: what reaches you
Type the company's yearly profit and who receives the dividend. Cyprus taxes the company once; whether it taxes the dividend depends on who gets it.
The rates come from Laws 244(I)/2025 and 245(I)/2025, in force 1 January 2026. Your own country may tax the dividend when it arrives. This explains the law; it isn't advice for your case.
15% on profit, then nothing on the way out to an owner abroad.
Is your Cyprus company tax resident in Cyprus?
From 2026, under the amended Income Tax Law, incorporation in Cyprus makes a company Cyprus resident, unless a treaty with another country says otherwise. For a founder running it from home, that second half matters. Two questions.
Formed in Cyprus means resident in Cyprus, unless a treaty hands the company to your country.
Cyprus withholding tax on payments abroad
Under the amended defence contribution law, "related" means more than half of the votes, capital or profit, directly or through others. A holding company you own outright in a zero tax country is related, so its dividends carry the 5%.
0% out, except to a company you control in a low tax or listed place.
Cyprus IP box, holding exemptions and crypto gains
Trademarks don't qualify for the IP box, and software only does when you developed it yourselves. Claiming these reliefs may also mean a full audit rather than the lighter review small companies may use.
IP, share gains and crypto each have their own rate. Check which one is yours.
Cyprus non-dom: if you move there yourself
A resident who isn't domiciled in Cyprus pays no defence contribution, so dividends and most interest are free of Cyprus tax, for 17 of every 20 years. After that, a new option in Law 245(I)/2025 lets you pay EUR 50,000 a year for five years instead. The 2026 bands below come from Law 244(I)/2025.
| Taxable income, from 2026 | Rate |
|---|---|
| Up to EUR 22,000 | 0% |
| EUR 22,001 to 32,000 | 20% |
| EUR 32,001 to 42,000 | 25% |
| EUR 42,001 to 72,000 | 30% |
| Above EUR 72,000 | 35% |
Salary from a first job in Cyprus above EUR 55,000 a year is half exempt for up to 17 years, if you hadn't lived there in the 15 years before.
Move there as a non-dom and dividends stay tax free for 17 years.
Cyprus VAT: 19%, and the EUR 15,600 line
- Cyprus sales pass EUR 15,600 in 12 months, or will within 30 days
- You sell services to EU businesses, from the first sale, to report them
- You buy services from abroad above EUR 15,600 a year
- 19% standard
- 9% hotels, restaurants and some transport
- 5% food, medicines and others; 3% books and press
Services sold to a business in another EU country carry no Cyprus VAT: your customer accounts for it at home, and you list the sale in a quarterly EU report.
Sell to EU businesses and you register from the first invoice, with no VAT on it.
Cyprus company tax return deadlines, year by year
The reform moved the dates, and 2024 and 2025 profits still follow some old rules. Pick a tax year.
Every company files accounts that are audited, or reviewed if it's small: turnover under EUR 300,000 and assets under EUR 500,000 for two years running. A late tax return costs EUR 250, or EUR 500 for larger companies, under Law 243(I)/2025.
2026 returns are due on 31 January 2028, with the tax.
Cyprus tax questions, answered
What is the corporate tax rate in Cyprus in 2026?
Do I pay tax in Cyprus on dividends if I live abroad?
Is Cyprus a tax haven?
What is the special defence contribution?
When is the Cyprus company tax return due?
Is there a deemed dividend rule in Cyprus now?
Can a Cyprus company hold crypto?
Does your price include the Cyprus tax return?
Changelog
- 10 November 2026: first published.
- 13 November 2026: official sources linked in the text.
A Cyprus company with the accounts and return already in the price.
EUR 1,890 a year, with office, secretary, accounts review and tax return.