Cyprus 2026 Tax Reform Hub
The Cyprus tax-reform package effective 1 January 2026 (Law 240(I)/2025, Law 239(I)/2025, Law 165(I)/2024 + DAC8 transposition) is the largest single-year overhaul Cyprus has seen since the 2002 EU-accession changes. Use this hub to navigate every change with deep-link articles + worked examples.
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Standard CIT raised from 12.5% to 15% from 1 January 2026 under Law 240(I)/2025. IP Box (80% exemption) regime maintained — effective ~3% on qualifying SaaS / software IP. 20% R&D super-deduction introduced (stacks with IP Box). 7-year loss carry-forward (raised from 5).
Cyprus Stamp Duty Law (Cap. 228) was repealed in full by Law 239(I)/2025, effective 1 January 2026.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.
8% flat-rate option introduced for crypto trading characterised as business income (Law 240(I)/2025). Replaces previous up-to-35% progressive exposure. Private-investor disposals remain 0% under titles-exemption analogy.
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.
0% on titles disposals (Article 9(1)(g) ITL) preserved — Cyprus's unconditional participation exemption remains in force. 20% CGT on Cyprus immovable property gains. Various exemptions extended under 2026 reform.
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. If a successful Tax Department challenge invalidates our position purely because of an error of our own, we redo the work at no cost.
Engagements coordinated with ICPAC-registered Cyprus tax advisers and Cyprus Bar Association member-firm lawyers. MOKAS-aligned under Cyprus AML Law 188(I)/2007. See our editorial standards and disclaimer.
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