Reference
Cyprus Tax Rates 2026
A complete reference card for every key Cyprus tax rate in 2026. Corporate tax, personal income tax, SDC, GeSY, VAT, social insurance, IP Box, and the new crypto rate — all in one place.
Corporate Income Tax (CIT)
| Category | Rate | Notes |
|---|---|---|
| Standard CIT rate | 15% | Increased from 12.5% (effective 1 Jan 2026) |
| IP Box effective rate | ~3% | 80% deduction on qualifying IP income |
| Shipping income (tonnage tax) | 0% | Qualifying shipping activities exempt |
| Capital gains on securities | 0% | Shares, bonds, debentures (not immovable property) |
| Capital gains on immovable property (Cyprus) | 20% | CGT on Cyprus real estate disposals |
| Crypto disposal gains | 8% | Flat rate from 2026 on crypto-asset gains |
Personal Income Tax (PIT)
| Taxable Income (EUR) | Rate |
|---|---|
| 0 – 22,000 | 0% |
| 22,001 – 35,000 | 20% |
| 35,001 – 60,000 | 25% |
| 60,001 – 72,000 | 30% |
| Over 72,000 | 35% |
Special Defence Contribution (SDC)
| Income Type | Rate | Non-Dom Exempt? |
|---|---|---|
| Dividend income | 17% | Yes — 0% for Non-Doms |
| Interest income | 30% | Yes — 0% for Non-Doms |
| Rental income (75% of gross) | 3% | No — applies to all residents |
Value Added Tax (VAT)
| Category | Rate |
|---|---|
| Standard rate | 19% |
| Reduced rate (accommodation, restaurants) | 9% |
| Reduced rate (certain goods) | 5% |
| Zero rate (intra-EU B2B, exports) | 0% |
GeSY (General Healthcare System)
| Contributor | Rate | Cap |
|---|---|---|
| Employee | 2.65% | On emoluments up to €180,000 |
| Employer | 2.90% | On emoluments up to €180,000 |
| Self-employed | 4.00% | On income up to €180,000 |
| Pensioners | 2.65% | On pension income up to €180,000 |
| Rental, interest, dividend income | 2.65% | On income up to €180,000 |
| Government (on behalf of citizens) | 4.70% | State contribution |
Withholding Tax (Domestic)
| Payment Type | Rate |
|---|---|
| Dividends (outbound) | 0% |
| Interest (outbound) | 0% |
| Royalties (outbound) | 0% (5% or 10% in certain cases) |
| Payments to non-resident entertainers/athletes | 10% |
Other Key Rates
| Item | Rate / Amount |
|---|---|
| Annual company levy | €350 |
| R&D super-deduction | 120% of qualifying R&D expenditure |
| Notional Interest Deduction (NID) | Reference rate on new equity |
| Transfer pricing | Arm's length standard (OECD aligned) |
| Stamp duty | Abolished from 1 January 2026 |
| Immovable Property Tax (IPT) | Abolished |
Need a Personalised Tax Estimate?
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Social Insurance Contributions