Cyprus: Tax

On 18 March 2026, the Cyprus Tax Department announced the 10-year government bond yield rates for a number of countries as at 31 December 2025.

The OECD's November 2025 updated Commentary on Article 5 of the Model Tax Convention introduces groundbreaking guidance on when cross-border remote working arrangements and home offices may create permanent...

Cyprus has fundamentally changed how it taxes outbound dividends, interest, and royalties paid to associated companies. Depending on where the receiving shareholder is located, the same payment can now attract 0%, 5%, or 17% withholding tax—or trigger a complete denial of the deduction. Most international groups have not yet reviewed their ownership structures against these new rules, which took effect on 1 January 2026 and apply automatically based on the recipient's jurisdiction.

Cyprus has raised its corporate income tax rate from 12.5% to 15%, but the total tax burden on distributed profits has actually fallen by more than eight percentage points for Cyprus-domiciled shareholders due to a dramatic cut in the Special Contribution for Defence on dividends. However, non-domiciled residents and foreign shareholders now face higher effective rates, fundamentally reshaping the island's tax competitiveness for different investor categories.

When a person passes away leaving assets in Cyprus, those assets cannot usually be transferred immediately to relatives or beneficiaries.

A quiet revolution is taking place across the Mediterranean. As 2025 unfolds, discerning high-net-worth individuals from the UK are discovering Cyprus, not as a tax haven in the traditional sense...

Cyprus continues to support international holding, financing and IP structures following its 2026 tax reform. While corporate tax has increased to 15%, key regimes including the IP Box, NID and participation exemption remain in place.

The Cyprus Tax Portal enables taxpayers to manage their tax obligations digitally, from submitting self-assessments to completing payments through card or internet banking. This practical guide walks through the essential steps for navigating the portal, selecting the correct tax categories, verifying payment details, and ensuring transactions are properly recorded in your tax account.

Cyprus removed a key barrier to its 60-day tax residency rule in January 2026, allowing applicants to qualify even if another country still claims them as tax resident. The change shifts the resolution of competing residency claims from domestic statute to double tax treaty tie-breaker provisions, fundamentally altering how internationally mobile business owners and executives can establish Cyprus tax residency.

The OECD's November 2025 updated Commentary on Article 5 of the Model Tax Convention introduces groundbreaking guidance on when cross-border remote working arrangements and home offices may create permanent...

Transfer pricing often first appears to be an accounting question. The legal position matters just as much. A payment between companies in the same group may be recorded correctly in the accounts and still need to be tested against the terms independent parties would have agreed.

A Cyprus tax review is a risk-based assessment of your direct and indirect tax, compliance and resilience by the Cyprus Tax Department.