Cyprus has implemented a comprehensive tax reform effective 1 Jan 2026. 

Cyprus has implemented a comprehensive tax reform effective 1 Jan 2026. 

Key changes include:

Companies

• The corporate tax will increase from 12.5% to 15% in line with OECD standards 
• The carry-forward period for tax losses will be extended to 7 years, up from previously 5 years.

Companies will continue to enjoy 0% capital gains tax on sale of securities. As a result, the increase in corporation tax will only effect companies with taxable income, such as interest income, rental income and operational income.

Individuals

• The non-dom status may be extended beyond 17 years, for up to two additional five year periods, subject to the payment of a lump sum of EUR 250,000 per period.
• The tax free income treshold for individuals will increase to EUR 22,000 per year.
• All tax residents will be required to file an income tax return regardless of income level.