Cyprus Tax Reform 2026 ENACTED
Cyprus Parliament approved the reform on 22 December 2025; the laws were published in the Government Gazette on 31 December 2025 and generally apply from 1 January 2026.
Sources: KPMG Cyprus reform summary | PwC Cyprus tax reform analysis | Cyprus Tax Department
Key Changes From 1 January 2026
The reform updates corporate tax, personal tax bands, SDC, capital gains, compliance rules and selected incentives.
Corporate Tax Changes
- Corporate Tax Rate:
12.5%-> 15% - Tax Loss Carry-Forward: Extended from 5 to 7 years
- DDD Rules: Abolished for profits earned from 2026 onwards, with transitional rules for older profits
- Crypto Gains: Special 8% taxation introduced for qualifying crypto-asset disposals
Personal Tax Changes
- SDC on Dividends:
17%-> 5%, with transitional rules - Tax-Free Threshold:
EUR 19,500-> EUR 22,000 - Non-Dom Status: Preserved, with possible 5+5 year extension subject to conditions
- 60-Day Rule: Revised; the old requirement not to be tax resident elsewhere has been removed
Who Is Affected? Select Your Profile
Tailored analysis for common expat and company profiles.
Before vs After: Visual Comparison
Headline rate changes at a glance.
Corporate Income Tax Rate
SDC on Dividends (Domiciled Residents)
Action Plan for 2026 Compliance
Practical steps to review during the 2026 tax year.
1. Audit & Model
- OKRecalculate corporate tax at 15% for 2026 profits
- OKReview whether tax losses qualify for the 7-year carry-forward period
2. Optimize Structure
- OKSeparate 2026 profits from pre-2026 profits for DDD transitional rules
- OKConfirm IP Box, dividend SDC and non-dom treatment
3. Execute & File
- OKUpdate payroll, accounting and provisional-tax assumptions
- OKCheck new deadlines, record-retention rules and penalties before filing
FAQ - Practical Answers
Based on published 2026 reform summaries and current Tax Department resources.