CYPRUS TAX REFERENCE / 2026 EDITION
Cyprus Tax Guide 2026
A practical route through the Cyprus tax rules affecting individuals, companies and internationally active businesses.
Use the guide to move directly to the topic you need—from residence and income-tax rates to corporate taxation, transfer pricing, specialist regimes and filing deadlines.
Updated for the 2026 tax reform. The guide reflects the principal provisions covered in our current tax materials.
01
Individuals
Tax residence and basis of taxation
The Cyprus residence tests and the basis on which an individual’s income may be taxed.
Personal income-tax rates and special modes
Income-tax bands, foreign-pension treatment and other special forms of taxation for individuals.
Exemptions and deductible expenses
Important income exemptions and expenses that may or may not be deductible.
Director, shareholder and employee benefits
The tax treatment of loans, benefits in kind and other amounts provided to directors, shareholders and employees.
Losses for individuals and the self-employed
Rules affecting business losses and losses connected with foreign permanent establishments.
Special Defence Contribution for individuals
How SDC may apply to dividend and interest income received by Cyprus tax-resident, domiciled individuals.
02
Companies
CORE CORPORATE TAX
Corporate tax residence and rate
How corporate tax residence is determined and how Cyprus corporation tax applies.
Exempt income and deductible expenses
Main categories of exempt income and expenses that may or may not be deductible.
Corporate losses
Carry-forward, group-relief and foreign permanent-establishment loss rules.
INTERNATIONAL AND GROUP MATTERS
Anti-tax-avoidance measures
The principal measures governing tax avoidance and cross-border arrangements.
Transfer pricing and the arm’s-length principle
Arm’s-length rules and reporting for transactions between associated persons.
Withholding taxes
Cyprus withholding-tax rules affecting specified Cyprus-source payments.
INCENTIVES AND SPECIALIST REGIMES
Cyprus IP regime
Eligibility, the nexus calculation and the deduction available for qualifying IP profit.
Profits from shipping activities
Overview of the tonnage-tax system for qualifying shipping activities.
Special Defence Contribution for companies
When SDC may apply to company dividend and passive-interest income, including relevant exceptions.
03
Other tax matters
Tax Calendar 2026
Key Cyprus tax and reporting dates for the 2026 compliance cycle.
Wear and tear allowances
Capital allowances available on qualifying business assets.
Cyprus crypto tax from 2026
The 8% flat-rate regime for qualifying crypto gains and its practical scope.
Capital Gains Tax in Cyprus
How CGT applies to Cyprus property and relevant property-rich share disposals.
This guide provides general information and does not constitute tax, legal or other professional advice. The application of Cyprus tax rules depends on the relevant facts, legislation and guidance in force at the time.
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