Cyprus: Withholding Tax

Cyprus has fundamentally changed how it taxes outbound dividends, interest, and royalties paid to associated companies. Depending on where the receiving shareholder is located, the same payment can now attract 0%, 5%, or 17% withholding tax—or trigger a complete denial of the deduction. Most international groups have not yet reviewed their ownership structures against these new rules, which took effect on 1 January 2026 and apply automatically based on the recipient's jurisdiction.

The Tax Department of Cyprus has announced deadlines for employer filings for the relevant period.

The Tax Department has announced that the Withholding Tax and Contributions Declaration (TD7) for the year 2024 is expected to be released to the Tax For All (TFA) portal in July 2025, at which point it will also be available for submission.