Tax Guide

Cyprus corporate taxes

Cyprus raised its corporate tax to 15% for 2026 (from 12.5%) as part of a wider reform, but keeps its hallmark features: no withholding tax on dividends, interest or royalties paid abroad, and full exemption for most dividend income. VAT is 19%. Every company must file audited financial statements. Filing runs through the Tax Department.

Currency EUR (€)Tax year Calendar yearEU member stateLast reviewed 2026-07-12
15%
Corporate income tax
Raised from 12.5% for 2026
19%
VAT standard rate
Reduced: 9% and 5%
0–35%
Income tax
Tax-free up to €22,000
0%
WHT to non-residents
Dividends, interest, royalties
8.8%
Social insurance β€” each side
Plus GHS (GESY) 2.9%
All companies
Audited accounts
Statutory audit required

Company forms & registration

A company is incorporated with the Registrar of Companies; beneficial owners are filed in the UBO register.

Main legal formsLtd (private limited by shares), public company[4][8]The private limited company is the default choice for most businesses.
Minimum share capitalPrivate: no minimum; public: ~€25,629[4][8]
Registers a new employer meetsRegistrar of Companies (incorporation, UBO) β†’ Tax Department (tax, VAT) β†’ Social Insurance Services[8][5]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

Audited financial statementsRequired for every company, whatever its size[8]Cyprus is unusual in requiring a statutory audit of all companies (prepared under IFRS).
Annual return (HE32)Filed with the Registrar each year[8]
Beneficial ownersA person controlling more than 25%[8]
Document retention6 years[5]

Corporate income tax

Rate15% (from 2026)[1][5]Raised from 12.5% as part of the 2026 tax reform, aligning with the global minimum tax.
Dividend incomeLargely exempt[1][5]Most dividends received by a Cyprus company are exempt from corporate tax.
Return & paymentReturn by 31 March of the second year; two provisional instalments[5]

Withholding taxes & dividends

Payments to non-residents0%[1][5]Cyprus levies no withholding tax on dividends, interest or royalties paid abroad (royalties only if the right is used outside Cyprus).
Dividends to resident individuals (SDC)5% special defence contribution[2]Applies to Cyprus-domiciled individuals (cut from 17% to 5% for post-2026 profits); non-domiciled residents are exempt.

VAT (ΦΠΑ)

Standard rate19%[3][6]
Reduced rates9% and 5%[3][6]9%: hotels, restaurants, transport. 5%: food, medicines, books, first home. 0% for exports and intra-EU supplies.
Registration threshold€15,600[6]
VAT returnQuarterly, by the 10th of the second month after the quarter[6]

Payroll: income tax & social insurance

Income tax is progressive with a generous tax-free band; social insurance and the health system (GHS/GESY) are shared between employer and employee.

Income tax0 / 20 / 25 / 30 / 35%[1][7]Tax-free up to €22,000 (raised in the 2026 reform); 35% above €72,000.
Social insurance8.8% employer + 8.8% employee[7]Up to a maximum insurable income.
General Health System (GHS/GESY)2.9% employer + 2.65% employee[7]
Minimum wage€1,000/month[7]A national minimum wage introduced in 2023 and reviewed periodically.

Other taxes companies meet

Special defence contribution (SDC)On passive dividends, interest and rents[2]
2026 SDC reformsDDD and rental-income SDC abolished[2]The 2026 reform abolished the deemed dividend distribution (DDD) rules for post-2026 profits and abolished SDC on rental income.
Capital gains tax20% on Cyprus immovable property[5]
Stamp dutyOn agreements, by value[5]

Accounting & financial statements

Accounting standardsIFRS (all companies)[8]
AuditStatutory audit of every company[8]
Annual return (HE32)Filed with the Registrar with the financial statements[8]

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked β€œper event”.

FormWhat it isWho filesFrequencyDeadlineFiled with
TD4Corporate income tax return[5]Companiesannual31 March of the second following yearTax DepartmentTAXISnet
VAT4VAT return[6]VAT-registered personsquarterly10th of the second month after the quarterTax DepartmentTax For All
TD7 / PAYEPayroll withholding & social insurance[7]All employersmonthlyMonthly to Tax Department & Social InsuranceTax Department / SISTAXISnet / SISnet
HE32Annual return with financial statements[8]All companiesannualAnnually to the RegistrarRegistrar of CompaniesRegistrar

Compliance calendar

The same filings grouped by rhythm β€” what recurs when.

monthly
  • TD7 / PAYEMonthly to Tax Department & Social Insurance
quarterly
  • VAT410th of the second month after the quarter
annual
  • TD431 March of the second following year
  • HE32Annually to the Registrar

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

  1. Income Tax Law (N.118(I)/2002)Tax Department Β· law
  2. Special Contribution for Defence LawTax Department Β· law
  3. VAT Law (N.95(I)/2000)Tax Department Β· law
  4. Companies Law (Cap. 113)CyLaw Β· law
  5. Corporate tax β€” guidanceTax Department Β· authority
  6. VAT β€” guidanceTax Department Β· authority
  7. Payroll β€” income tax & social insuranceTax Department / Social Insurance Services Β· authority
  8. Registrar of Companies & beneficial ownersRegistrar of Companies Β· register