Tax & International Structuring in Cyprus

Essentials guide · Source-checked research62% of statements checked against a source10 checked against an official source19 checked against a secondary sourceChecked 2026-10-194 held back until checked against an official source8 topics include AI-written statements, not source-checkedNot yet professionally reviewed

• The standard corporate income tax rate in Cyprus is 15% from 1 January 2026; it was 12.5% up to 31 December 2025.

  Part of a tax reform package passed on 22 December 2025 and published in the Official Gazette on 31 December 2025, applying to tax years from 1 January 2026.PwC Worldwide Tax Summaries · checked 2026-10-19

• The standard VAT rate in Cyprus is 19% (as at mid-2026), with reduced rates for specified goods and services.

  Reduced rates of 9%, 5% and 3% and a zero rate apply to specified goods and services.PwC Worldwide Tax Summaries · checked 2026-10-19

• Cyprus generally does not levy withholding tax on dividends paid to non-residents; exceptions apply to dividends paid to companies in jurisdictions on the EU list of non-cooperative jurisdictions and, from 1 January 2026, to related companies in low-tax jurisdictions, where a 5% withholding tax applies.

  Quoted companies are excepted, subject to conditions.PwC Worldwide Tax Summaries · checked 2026-10-19

• Cyprus's IP box allows a deductible notional expense of 80% of qualifying profits from qualifying intellectual property, scaled under the OECD modified nexus approach to reflect the taxpayer's own research and development.

  Qualifying IP includes patents, copyrighted software and utility models; trademarks and other marketing IP do not qualify, and capital gains on IP are excluded. The current regime applies from 1 July 2016.PwC Worldwide Tax Summaries · checked 2026-10-19

Read the full guide: Tax, accounting and statutory reporting