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Standard CIT raised from 12.5% to 15% from 1 January 2026 under Law 244(I)/2025. IP Box (80% exemption) regime maintained — effective approximately 3% on qualifying SaaS / software IP. The additional 20% R&D deduction covers qualifying expenditure incurred in 2025–2030. It excludes expenditure on an eligible intangible asset for which IP Box has applied in any year, including the current year (Article 9(1)(d)). 7-year loss carry-forward (raised from 5).
Cyprus Stamp Duty Law (Law 19/1963) was repealed in full by Law 239(I)/2025, effective 1 January 2026. Documents executed from that date attract zero stamp duty — including contracts, share-purchase agreements, intercompany loan agreements, mortgages.
PIT bracket structure preserved (0% / 20% / 25% / 30% / 35%). 50% expat exemption for new tax residents extended to 17 years for income >€55,000. Non-Dom 17-year regime preserved unchanged.
Qualifying crypto disposal gains fall under the 8% income-tax rule in Article 20E for individuals and companies. This is not an annual election or an SDC exemption. Mining-derived assets are excluded; other receipts require separate classification.
SDC on dividends for Cyprus-domiciled residents reduced from 17% to 5%. Non-Dom 17-year 0% SDC on dividends + interest + rental preserved. Transitional deemed-dividend distribution rules adjusted.
Article 8(22) exempts qualifying securities disposals from income tax. Cyprus-property capital gains, including relevant share interests, require separate review under the CGT Law; exemptions are conditional.
DAC6 mandatory disclosure of cross-border arrangements (Law 41(I)/2021) operating normally. DAC8 crypto-asset reporting kicks in from 1 January 2026 (Directive EU 2023/2226) — first auto-exchange 30 September 2027. Pillar Two GloBE rules applied to MNE groups ≥ €750M (Law 165(I)/2024).
Standard VAT 19% preserved. EU OSS / IOSS frameworks operating normally. Financial-services exemption under Article 135 EU VAT Directive (Hedqvist principle for crypto) unchanged.
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Every Nexora engagement we run translates the 2026 reform into a specific, statute-cited Cyprus tax position for your facts.
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