Cyprus: Income Tax

Cyprus's 2026 tax reform introduces a 10% charge on disguised dividends, targeting previously informal arrangements where shareholders use company assets for private purposes. The charge applies to the full market value of assets like company cars and properties, creating significant tax exposure for owner-managed businesses that were previously operating under unreported arrangements.

Cyprus has cut its dividend tax rate from 17% to 5% starting January 2026, but the reduction applies only to profits earned from that date forward.

The governments of the Hong Kong Special Administrative Region (HKSAR) and the Republic of Cyprus announced the signing of a comprehensive double taxation agreement (DTA) on 12 June aimed at eliminating double taxation on income and combating tax evasion and tax avoidance.

The Cyprus transfer pricing landscape changed materially with N.244(I)/2025, which amended Article 33 of the Income Tax Law as part of the broader 2026 reform package. From 1 January 2026, the thresholds that determine whether your Cyprus subsidiary must keep a Cyprus Local File have been raised significantly. Many group controllers will read this as good news.

Cyprus has long been an attractive destination for individuals seeking a stable legal system, a favourable tax environment and a high quality of life.

Κατά τον μήνα Μάρτιο 2026, ο Δείκτης Κύκλου Εργασιών στη Βιομηχανία έφθασε τις 144,7 μονάδες (βάση 2021=100), σημειώνοντας αύξηση 5,6% σε σύγκριση με τον Μάρτιο του 2025. Για την περίοδο Ιανουαρίου– Μαρτίου 2026, ο δείκτης παρουσ

Crypto taxation has entered a new phase globally. What was once treated as an experimental or lightly regulated asset class is now firmly embedded within mainstream tax systems.

Cyprus has become one of the most attractive destinations in Europe for international entrepreneurs, remote professionals, investors and retirees.

Many property owners in Cyprus rent out their properties through online platforms such as Airbnb, Booking.com...