Cyprus Tax System in 2026: A Short Guide
Corporate income tax, VAT, personal income tax and dividend tax in Cyprus: all the rates in one place, no fluff
The main change in 2026 is the rise of corporate tax to 15%, driven by Cyprus adopting the OECD global minimum tax. Some related reliefs were recalculated as well. We have put together the current figures briefly, without the filler.
Business taxes in Cyprus
Corporate income taxwas 12.5%15%
Effective rate under the IP Box regime for intellectual property incomerecalculated together with the corporate tax increase3%
Standard VAT rate19%
Reduced VAT rates9% / 5% / 3% / 0%
Stamp dutyabolished
Withholding tax on outgoing paymentsexcept for EU blacklisted countries and low-tax jurisdictions0%
Taxes for individuals in Cyprus
Personal income tax: tax-free threshold0% up to €22,000
Personal income tax: top ratefor income above €72,000; intermediate rates apply between the thresholds35%
Special Defence Contribution (SDC) on dividends for tax-resident domiciled individualswas 17%5%
Dividend tax for non-domiciled (non-dom) residentsthe exemption applies for up to 17 years of tax residence in Cyprus0%
Capital gains taxonly on immovable property in Cyprus; securities are not taxed20%
Inheritance, property, gift and wealth taxesnone
Important: this is a guide, not tax advice. The calculation for a specific situation depends on your residency status, income structure and business details. Check current rates and reliefs before making decisions.
Frequently asked questions about taxes in Cyprus
What is the corporate income tax rate in Cyprus in 2026?
From 1 January 2026 the standard corporate income tax rate in Cyprus is 15%. It rose from 12.5% because Cyprus adopted the OECD global minimum tax.
Do individuals pay income tax in Cyprus?
Yes, but income up to €22,000 a year is tax-free. Above that the rate rises on a progressive scale and reaches a maximum of 35% for income above €72,000 a year.
Is there inheritance tax in Cyprus?
No. Cyprus has no inheritance tax, property tax, gift tax or wealth tax.
What is the VAT rate in Cyprus in 2026?
The standard VAT rate is 19%. Reduced rates of 9%, 5%, 3% and 0% apply to certain categories of goods and services.
Are dividends taxed in Cyprus?
Tax-resident domiciled individuals pay 5% SDC on dividends, down from 17%. Non-domiciled (non-dom) residents pay no tax on dividends: the exemption applies for up to 17 years of tax residence in Cyprus.
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We will review the tax structure of your business or personal income in Cyprus.
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