Cyprus Tax Reform 2026 OFFICIAL
All changes confirmed by the Cyprus Tax Department and effective 1 January 2026. Includes 15% corporate tax, 5% SDC, preserved IP Box, and non-dom regime.
Source: Ministry of Finance | Tax Department Circular 2025/12
Key Changes Effective 1 Jan 2026
The reform complies with OECD Pillar 2 while preserving Cyprus’s competitive edge.
Corporate Tax Changes
- Corporate Tax Rate:
12.5%→ 15% (OECD/EU compliance) - Tax Loss Carry-Forward: Extended from 5 to 10 years
- Deemed Dividend Distribution: Abolished permanently
Personal Tax Changes
- SDC on Dividends (Domiciled):
17%→ 5% - Tax-Free Threshold:
€19,500→ €20,500 - Non-Dom Status: Fully preserved (17 years)
Who Is Affected? Select Your Profile
Tailored analysis based on official law.
Before vs After: Visual Comparison
See the direct impact of the 2026 reform.
Corporate Income Tax Rate
SDC on Dividends (Domiciled Residents)
Action Plan for 2026 Compliance
Steps to prepare before 31 Dec 2025.
1. Audit & Model
- ✓Recalculate tax at 15% (not 12.5%)
- ✓Extend loss planning to 10 years
2. Optimize Structure
- ✓Retain profits freely — DDD abolished
- ✓Confirm IP Box and non-dom eligibility
3. Execute & File
- ✓Update accounting systems by Q4 2025
- ✓File first return under new rules in 2026
FAQ – Official Answers
Based on Tax Department Circular 2025/12