Corporate income tax
A Cyprus tax resident company pays corporate income tax of 15% on its taxable profit from the 2026 tax year. Before the reform the rate was 12.5%. Taxable profit is profit after allowable business expenses, so good bookkeeping matters from the first month.
Non-dom residents
An individual who becomes Cyprus tax resident but is not Cyprus domiciled can be exempt from the defence contribution on dividends and interest for up to 17 years. This is a personal tax status of the shareholder, not of the company, and it has conditions. The 2026 reform added an option to extend it for a fee.
IP box
Qualifying profit from certain intellectual property, such as patents and copyrighted software developed by the company, can get an 80% deduction. With the 15% rate, that puts the effective rate on qualifying profit at about 3%. The rules on which income qualifies are strict, so it needs an adviser and good records from day one.
Other changes in 2026
- Stamp duty: abolished from 1 January 2026. Older guides still show a 0.6% capital duty on incorporation; it no longer applies.
- Tax return deadline: from tax year 2026 the corporate tax return and the final payment are due 31 January of the second year after the tax year, so the 2026 return is due 31 January 2028.
- Annual company levy: abolished from 1 January 2024 (2011 to 2023 arrears still due).
- Audit: small companies may now use a review instead of a full audit, but not if they claim the IP box. See yearly obligations.
General information only, checked against public sources on 31 October 2026. It is not tax advice. Your accountant should confirm how these rules apply to you.