What changed in the Cyprus 2026 tax reform?

What are the corporate and business tax changes?

From 1 January 2026, corporate income tax rose from 12.5% to 15% for all Cyprus tax-resident companies — the first rate change in over two decades. The tax-loss carry-forward period extends from five to seven years, stamp duty is fully abolished, and the Deemed Dividend Distribution regime ends for 2026 profits. A new 8% flat tax applies to crypto-asset gains. The IP Box and notional interest deduction remain. The Pillar Two global minimum tax affects only groups with turnover of €750 million or more.

What are the personal and residency changes?

The personal tax-free threshold rose from €19,500 to €22,000, with the bands above adjusted up to a 35% top rate over €72,000. The non-dom regime is preserved — non-doms still pay 0% Special Defence Contribution on dividends and interest. For domiciled residents, dividend SDC fell from 17% to 5%. The 60-day tax-residency rule was simplified by dropping the condition that you not be tax-resident elsewhere, and the foreign-pension flat-rate threshold rose from €3,420 to €5,000.

Is the reform enacted, and what should you do?

The reform is fully enacted, not proposed: the House voted on 22 December 2025, Law 3/2026 was gazetted on 31 December 2025, and the changes took effect on 1 January 2026. If you own a Cyprus company, invest through Cyprus, or have recently relocated, review your position under the new rules — particularly the 15% corporate rate, the 5% dividend SDC and your non-dom eligibility. This is general information, not tax advice.