Taxes in Cyprus (2026): Rates for Companies & People

Cyprus taxes are simpler than their reputation: a company pays 15% on profit, an individual pays nothing on the first €22,000 and 20–35% above it, and dividends cost a non-domiciled resident nothing beyond a capped 2.65% health contribution. Almost every number in that sentence is new. Parliament passed a comprehensive tax reform on 22 December 2025; the laws were published in the Official Gazette on 31 December 2025 and have applied since 1 January 2026. Any guide still quoting 12.5% corporate tax or a €19,500 tax-free band describes a system that no longer exists.

15%Corporate tax · 2026

€22,000Tax-free band

5%SDC on dividends

The system on one screen

Tax	Who it hits	Where it stands in 2026
Corporate income tax	Cyprus tax-resident companies	15% (12.5% until end-2025)
Personal income tax	Individuals, on salary and business income	0% up to €22,000, then 20–35%
SDC on dividends	Only residents domiciled in Cyprus	5% on post-2025 profits; 0% for non-doms
GESY (national health)	Employees 2.65%, self-employed 4%, dividends/rent/interest 2.65%	Base capped at €180,000 per year
Social insurance	Employees and employers	8.8% each, on earnings up to €68,904
VAT	Businesses above €15,600 taxable turnover	19% standard; 9%, 5%, 3% reduced; 0%
Capital gains tax	Cyprus real estate only	20%; securities are exempt
Stamp duty	—	Abolished from 1 January 2026
Inheritance tax	—	None since 2000

What changed on 1 January 2026

The reform was the largest rewrite of Cyprus tax law in decades. The changes that matter to a foreign owner:

Corporate tax 12.5% → 15% — for every resident company, not just large groups.
Personal bands widened — the tax-free band moved from €19,500 to €22,000, and the 35% top rate now starts at €72,000 instead of €60,000.
SDC on dividends 17% → 5% for domiciled residents. Non-doms stay at 0%. Dividends from pre-2026 profits keep 17% if paid by the end of 2031.
Deemed distribution abolished for profits earned from 2026 — replaced by a targeted 10% charge on “disguised” distributions such as personal use of company assets.
SDC on rental income abolished (previously an effective 2.25%).
Stamp duty abolished for documents signed from 2026.
Crypto gains: flat 8% — one of the first explicit statutory crypto rates in the EU, detailed on the crypto tax page — and qualifying employee stock options: flat 8%.
Losses now carry forward 7 years (was 5), and new personal deductions arrived for children, housing loan interest or rent, and energy upgrades.

One caveat we state plainly: reports differ on whether a final bill on tax-collection mechanics was carved out of the December vote. Every rate on this page, however, comes from laws already published in the Gazette — not from proposals.

Your company’s taxes vs your taxes

Founders mix these up constantly, so: the company and you are separate taxpayers.

The company pays corporate income tax at 15% on its profit, runs VAT once registration is triggered, and pays employer contributions on salaries — the full employer cost is on the payroll page and in the salary calculator. A company earning from qualifying IP can push the rate on that profit down to about 3% under the IP Box.

You pay tax on what you take out. Salary goes through the personal income bands plus social insurance and GESY. Dividends go through SDC and GESY, where your domicile status decides almost everything. The salary-vs-dividends mix is the core planning decision for a Cyprus owner, and it is arithmetic, not art.

What non-dom status changes

Most foreign founders who become Cyprus tax residents qualify as non-domiciled — and non-doms pay 0% SDC on dividends and interest for 17 years, extendable after that under a new paid regime. What remains is GESY at 2.65% on a base capped at €180,000, so at most €4,770 per year on dividends. The honest version of “0% dividend tax” is “up to 2.65%, capped” — we explain the mechanics on the non-dom page and the entry routes on the tax residency page: 183 days, or 60 days with Cyprus ties.

The dates that matter

Exact statutory deadlines depend on your setup — VAT periods, financial year, group size — so we build a per-client calendar rather than publish a generic one. Fixed points worth knowing in 2026:

Date / rhythm	What it is
During the tax year	Provisional tax on the current year’s profit, paid in instalments
Monthly	VIES statements, for companies making EU B2B supplies
31 January 2026	The deemed-distribution return for 2023 profits fell due — the legacy regime still winds down for pre-2026 profits
30 June 2026	Pillar Two notification for FY2024 — only groups with €750m+ consolidated revenue
Return filing	The new personal deductions (children, housing, energy) are forfeited if the return is filed late

Run your numbers

Rates only become decisions when they meet your figures. The Cyprus tax calculator models the 2026 bands, contributions, caps and the non-dom dividend position in one pass — use it before you commit to a salary level or a distribution.

How we run it

Map your position. Residency route, domicile status, where the company sits, where the profits come from.
Set the extraction mix. Salary vs dividends modelled on 2026 rules, in writing, with the assumptions stated.
Register everything. Tax number (TIC), GESY, employer registrations — before the first payment, not after.
Run the calendar. Provisional tax, returns and contributions filed on time, with each deadline flagged to you in advance.

Frequently asked questions

What is the corporate tax rate in Cyprus in 2026?

15%, for all Cyprus tax-resident companies, on tax years from 1 January 2026. The rise from 12.5% was voted on 22 December 2025 and published in the Official Gazette on 31 December 2025. It applies regardless of company size — this is separate from the Pillar Two minimum tax, which only touches groups with €750 million+ consolidated revenue. Details on the corporate tax page.

How are dividends taxed in Cyprus now?

For a Cyprus-domiciled resident: 5% SDC on dividends from profits earned in 2026 or later, plus GESY of 2.65% on a capped base. For a non-domiciled resident: 0% SDC, GESY only. Dividends paid out of pre-2026 profits keep the old 17% rate until the end of 2031. Non-residents pay neither SDC nor GESY. Full breakdown on the dividend tax page.

Is Cyprus still a low-tax country after the 2026 reform?

For owners, mostly yes — the reform raised the corporate rate but cut the taxes on getting money out. A domiciled owner's dividends dropped from 17% to 5% SDC; deemed distribution and stamp duty were abolished; the tax-free personal band rose to €22,000. Non-dom residents keep 0% SDC on dividends and interest. The system is now flatter and better documented than before.

Is there inheritance tax in Cyprus?

No. Estate duty was abolished for deaths from 1 January 2000, and the 2026 reform did not reintroduce anything like it. Capital gains tax exists but is narrow: 20%, and only on gains connected to Cyprus real estate. Gains on shares and other securities are exempt from income tax for both companies and individuals.

When did the Cyprus tax reform take effect?

Parliament voted the reform package on 22 December 2025, the laws were published in the Official Gazette on 31 December 2025, and the new rules apply from 1 January 2026. That makes 2026 the first tax year under the 15% corporate rate, the new personal income bands and the 5% SDC on dividends. Anything you read quoting the old numbers predates the reform.

How taxes in Cyprus actually work