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Cyprus Tax Reform 2026:
What Businesses and Investors
Need to Know

Request consultation

Cyprus Tax Reform Effective from 1 January 2026

Effective from 1 January 2026, Cyprus introduces major changes to its tax system, impacting corporate taxation, personal income tax, and dividend rules — while keeping the elements that make Cyprus a leading EU business jurisdiction.

At MyFirm Global LTD, we guide businesses and investors through these changes to ensure optimal tax planning, compliance, and strategic structuring.


Key Corporate Tax Changes
  • Corporate tax rate: Raised from 12.5% to 15%, aligning Cyprus with OECD Pillar Two rules.
  • Abolition of Deemed Dividend Distribution (DDD): Profits can now be retained indefinitely; dividends are taxed only when distributed, improving cash flow and investment flexibility.
  • Dividend tax for individuals: Reduced from 17% to 5% for Cyprus tax-resident and domiciled individuals. Non-doms continue enjoying 0% tax on dividends and interest.
  • Crypto and stock-based remuneration: Gains from crypto disposals taxed at 8%; employee stock options also taxed at 8% under approved schemes.

Other incentives remain: IP Box regime, Notional Interest Deduction (NID), participation exemptions, and no capital gains tax on securities.

Personal Tax Updates

  • Tax-free threshold: Increased to €22,000.
  • New progressive bands: Up to 35% for income above €72,000.
  • New deductions: For dependents, mortgage interest or rent, energy efficiency improvements, and home insurance.

These changes simplify compliance while supporting households and sustainable investments.

We create global legal solutions
How We Can Help?
Assessing corporate structure and business model
Tax and regulatory compliance planning

Banking and financial setup for international operations
Frequently Asked Questions (FAQ)
»
How We Can Help?
Contact us to discuss how these reforms affect your business and structure.
Free Consultation
Why MyFirm Global?
  • Experience with international corporate structures
  • Multi-jurisdictional approach
  • Focus on compliance and long-term support
  • Assistance beyond incorporation
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