Updated January 2026
Cyprus Tax Reference 2026
All Cyprus tax rates, rules, and deadlines in one place. Corporate tax, Non-Dom regime, personal income tax, GHS, social insurance, VAT, CGT, company formation costs, and filing deadlines - all updated for 2026.
Corporate Income Tax
| Item | Rate / Value | Notes |
|---|---|---|
| Standard rate | 15% | Increased from 12.5% effective January 1, 2026 |
| IP Box rate | ~3% | 80% exemption on qualifying IP income; must have substance in Cyprus |
| NID deduction | 8.049% | Notional Interest Deduction on new equity; can reduce effective rate to ~3% |
| Dividend received (participation exemption) | 0% | Dividends from subsidiaries exempt if conditions met (no Pillar Two impact if subsidiary pays 15%+) |
| Tax base | Net taxable profit | Revenue minus deductible expenses, salaries, depreciation, NID, losses |
| Annual return deadline | March 31 | Via TaxisNet (IR4 for companies) |
| Provisional tax (TD1) | April 30 / September 30 | Two equal instalments based on prior-year liability |
| Tax year | January 1 - December 31 | Calendar year; no option to use a different fiscal year |
| Filing form | IR4 | Company income tax return filed electronically via TaxisNet |
| Annual levy | €350 | Due June 30 each year; payable to Registrar of Companies |
Non-Dom Regime
| Item | Rate / Value | Notes |
|---|---|---|
| Foreign dividends | 0% SDC + 2.65% GHS | Total effective rate ~2.65% (subject to €180k GHS cap) |
| Foreign interest income | 0% SDC + 2.65% GHS | Non-Dom exempt from 30% SDC on interest |
| Foreign rental income | 0% SDC | Non-Dom exempt from 3% SDC on rental income; income tax bands apply if Cyprus-source |
| SDC rate for domiciled residents (dividends) | 5% | Reduced from 17% in January 2026 |
| SDC rate for domiciled residents (interest) | 30% | Unchanged |
| SDC rate for domiciled residents (rental) | 3% | Unchanged |
| Duration of Non-Dom | Up to 17 years | Expires once resident for 17 of last 20 years (domicile deemed) |
| Who qualifies | Any person not domiciled in Cyprus | Most foreign nationals relocating qualify automatically; domicile assessed per Wills and Succession Law |
| Application | Automatic / TaxisNet declaration | No separate application needed; declare on IR1 as Non-Dom each year |
Personal Income Tax
| Item | Rate / Value | Notes |
|---|---|---|
| €0 - €19,500 | 0% | Standard personal allowance (no application required) |
| €19,501 - €28,000 | 20% | |
| €28,001 - €36,300 | 25% | |
| €36,301 - €60,000 | 30% | |
| Above €60,000 | 35% | Top marginal rate; applies only to employment/self-employment income |
| 50% salary exemption | First 17 years as resident | Applies to salaries above €55,000/year from Cyprus-source employment; reduces effective income tax significantly |
| Dividend income (Non-Dom) | 0% income tax | Dividends not subject to personal income tax under any status; SDC applies for domiciled residents |
| Personal income tax return | IR1 | Annual return; deadline April 30 via TaxisNet |
GHS / GESY (General Healthcare)
| Item | Rate / Value | Notes |
|---|---|---|
| Rate on employment income | 2.65% (employee) + 2.90% (employer) | |
| Rate on self-employment income | 4.00% | Self-employed bear full contribution |
| Rate on dividends | 2.65% | Applies to all dividends received by Cyprus tax residents |
| Rate on rental income | 2.65% | |
| Annual income ceiling | €180,000 | All income sources combined; max GHS = €4,770/year (employee), €7,200/year (self-employed) |
| GHS cap interaction | Combined across all income | If salary of €50k + dividends of €150k = €200k total, GHS applies only on first €180k |
| Who is covered | All Cyprus tax residents | Provides access to public hospitals and GHS-contracted private providers |
| Does Non-Dom status affect GHS? | No | GHS applies to all residents including Non-Dom; only SDC is exempt for Non-Dom |
| GHS payment mechanism | Via TaxisNet (IR1 / IR4) | Declared annually; may be withheld by employer on salary |
Capital Gains Tax
| Item | Rate / Value | Notes |
|---|---|---|
| Shares (listed and unlisted, worldwide) | 0% | Disposal of company shares fully exempt from CGT |
| Cryptocurrency disposal | 8% flat | New from January 2026 for active crypto trading; 0% for passive holders |
| Foreign real estate | 0% | Capital gains on foreign property not taxed in Cyprus |
| Cyprus immovable property | 20% | Applied on the gain (sale price minus indexed acquisition cost) |
| Cyprus property exemptions | €17,086 lifetime or principal home deduction | Reduces CGT base; principal private residence exemption applies |
| Pre-residence gains | 0% | Unrealised gains accrued before becoming Cyprus tax resident are not taxed on disposal |
| IP disposal | IP Box exemption applies | 80% of qualifying IP disposal proceeds exempt from corporate tax |
VAT
| Item | Rate / Value | Notes |
|---|---|---|
| Standard rate | 19% | Applies to most goods and services |
| Reduced rate | 9% | Restaurants, hotels, tourist services |
| Super-reduced rate | 5% | Essentials: food, books, medicine, newspapers |
| Zero rate | 0% | Exports, intra-EU supplies to VAT-registered buyers |
| Registration threshold | €15,600/year | Annual turnover threshold; must register before exceeding |
| Filing frequency | Quarterly | VAT return due by end of month following quarter-end |
| Stamp duty | 0% | Abolished from January 2026 |
| EU OSS | Supported via TaxisNet | One-Stop Shop for e-commerce sellers with EU customers |
| Reverse charge | On B2B services from EU | VAT-registered buyers account for VAT on services received from other EU countries |
Tax Residency Rules
| Item | Rate / Value | Notes |
|---|---|---|
| Standard rule | 183 days physical presence | Physical presence in Cyprus for at least 183 days in calendar year |
| 60-day rule — Condition 1 | Min 60 days physical presence | Must be in Cyprus for at least 60 days (not necessarily consecutive) |
| 60-day rule — Condition 2 | Max 183 days in any other country | Cannot be tax resident elsewhere |
| 60-day rule — Condition 3 | No other tax residency | Must not be tax resident in any other country |
| 60-day rule — Condition 4 | Permanent home in Cyprus | Own or rented property available year-round; not a hotel room |
| 60-day rule — Condition 5 | Business or employment nexus | Employment, business, or directorship in Cyprus — at least one must apply |
| Tax residency certificate | Form TRC | Issued by Cyprus Tax Department; required for treaty benefits |
| Day counting | Days present at midnight | Arrival day counts; departure day does not (standard international rule) |
Property Taxes and Fees
| Item | Rate / Value | Notes |
|---|---|---|
| Immovable Property Tax | 0% | Abolished since 2017; formerly a central government levy on property value |
| Municipal rates (immovable) | 0.1% - 0.2% of value | Local authority charge; varies by municipality |
| Transfer fee — first €85,000 | 3% | Paid by buyer to Land Registry on property transfer |
| Transfer fee — €85,001 to €170,000 | 5% | |
| Transfer fee — above €170,000 | 8% | |
| Transfer fee discount (resale) | 50% reduction | Applies on resale properties where VAT was not charged |
| Stamp duty on contracts | 0% | Abolished from January 2026; previously €2/€1,000 on first €5,000, then higher rates |
| Capital gains on Cyprus property | 20% | On net gain after indexed acquisition cost and exemptions |
Company Formation and Maintenance
| Item | Rate / Value | Notes |
|---|---|---|
| Legal form | Private Limited by Shares (Ltd) | Governed by Companies Law Cap. 113; most common structure for entrepreneurs |
| Formation cost | ~€2,000 - €2,500 | Includes registration, stamp duty, registered office first year |
| Formation time | 7-15 business days | Fully remote; no physical presence required |
| Minimum share capital | €1 (no paid-up minimum) | Authorized capital typically €1,000 with €1 paid up |
| Annual levy | €350 | Due June 30 each year to Registrar of Companies |
| Annual audit | Required for all Cyprus companies | Statutory audit by registered Cyprus auditor; cost €1,500-3,000+ |
| Registered office | Required in Cyprus | Physical Cyprus address; cost ~€500/year via service provider |
| Company secretary | Required | Must be Cyprus resident or registered firm; cost ~€500-1,000/year |
| Management and control | Majority board in Cyprus | Required for Cyprus tax residency of company; management decisions must be made in Cyprus |
| HE32 | Annual return form | Filed with Registrar of Companies each year; lists directors, shareholders, registered office |
| UBO register | Required | Ultimate Beneficial Owners must be registered with Cyprus registry |
Key Tax Filing Deadlines 2026
| Item | Rate / Value | Notes |
|---|---|---|
| IR1 — Personal income tax return | April 30 | Employees and self-employed individuals; filed via TaxisNet |
| TD1 — Provisional tax assessment | April 30 (1st instalment) | Based on estimated current-year income |
| TD1 — 2nd provisional instalment | September 30 | 2nd instalment; adjust if income differs from estimate |
| IR4 — Company tax return | March 31 | Annual corporate return via TaxisNet |
| Annual levy | June 30 | €350 to Registrar of Companies |
| HE32 — Annual return | Annual | Filed with Registrar; no fixed date but must be kept current |
| VAT return | End of month after quarter | Q1 due April 30, Q2 due July 31, Q3 due October 31, Q4 due January 31 |
| GHS on dividends | With IR1 (April 30) | Declared and paid with personal income tax return |
| SDC on dividends (domiciled only) | With IR1 | Non-Dom residents exempt; domiciled residents declare on IR1 |
Inheritance, Gifts and Wealth
| Item | Rate / Value | Notes |
|---|---|---|
| Inheritance tax | 0% | Abolished in 2000 (Law 118(I)/2000). No estate duty. |
| Gift tax | 0% | No gift tax in Cyprus |
| Wealth tax | 0% | No annual wealth or net worth tax |
| Estate duty | 0% | Abolished along with inheritance tax |
| Probate | Cyprus court required for Cyprus assets | Foreign wills may be recognized; local probate needed for Cyprus-registered assets |
International Tax
| Item | Rate / Value | Notes |
|---|---|---|
| Double tax treaties | 65+ countries | Comprehensive network including Germany, UK, France, Spain, USA, Russia, India, China |
| Withholding tax on dividends to non-residents | 0% | Cyprus does not withhold tax on dividends paid to non-resident shareholders |
| Withholding tax on interest to non-residents | 0% | No WHT on interest payments to non-residents |
| Withholding tax on royalties to non-residents | 10% (can be reduced by treaty) | Domestic rate; most treaties reduce to 0-5% |
| CRS / AEOI | Full participant | Cyprus exchanges financial information automatically with 100+ countries; not a secrecy jurisdiction |
| FATCA | IGA signed with USA | Cyprus financial institutions report US person accounts to IRS via Cyprus Tax Department |
| Pillar Two (OECD minimum tax) | 15% minimum from 2025 | Applies to MNE groups with >€750M revenue; affects multinational structures |
| DAC6 | Implemented | Mandatory disclosure of cross-border arrangements by intermediaries |
| EU Anti-Tax Avoidance Directives | ATAD I and II implemented | CFC rules, anti-hybrid, interest limitation, exit tax (ATAD applies only to companies) |
| BEPS | Signatory | Cyprus signed MLI (Multilateral Instrument) in 2017; PPT clause applies to covered treaties |
| EU Blacklist status | Not listed | Cyprus is not on EU list of non-cooperative jurisdictions |
| Territorial vs worldwide | Worldwide for companies; mainly territorial for individuals | Cyprus Ltd taxed on worldwide income; individual income tax on Cyprus-source; Non-Dom exemption on foreign passive |
Official Sources
| Item | Rate / Value | Notes |
|---|---|---|
| Cyprus Tax Department | tax.gov.cy | Official legislation, circulars, rate announcements |
| Ministry of Finance | mof.gov.cy | Budget documents, policy statements, TaxisNet access |
| TaxisNet | taxisnet.mof.gov.cy | Online tax portal for filing, payment, registration |
| GESY (GHS) | gesy.org.cy | GHS contribution rates, covered services, provider list |
| Social Insurance Services | mlsi.gov.cy | SI contribution rates, ceilings, benefits |
| Registrar of Companies | efiling.drcor.mcit.gov.cy | Company registration, HE forms, UBO register |
| PwC Cyprus Tax Guide 2026 | taxsummaries.pwc.com/cyprus | Annual third-party summary of all Cyprus tax rates and rules |
| KPMG Cyprus Tax Card 2026 | kpmg.com/cy | Annual reference card with all major rates |
| EY Cyprus Tax Guide 2026 | ey.com/en_cy/tax | Annual comprehensive guide |
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All rates and rules are based on 2026 published legislation, Cyprus Tax Department circulars, and PwC/EY/KPMG/Deloitte 2026 Cyprus tax guides. Last reviewed: April 2026. This page is for informational purposes only and does not constitute tax advice. Consult a qualified Cyprus tax advisor for your specific situation.
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