Cyprus Tax Rates 2026: Personal Income Tax, Corporate Tax, VAT & Capital Gains
Cyprus introduced a major tax reform from 1 January 2026. This page summarizes the principal current tax rates for individuals and companies, together with VAT, capital gains tax, withholding tax, tax residency, social insurance and filing rules.
Cyprus Personal Income Tax Rates for 2026
From the 2026 tax year, Cyprus increased the tax-free band from €19,500 to €22,000 and revised the taxable income brackets. The progressive rates are:
| Taxable income (€) | Tax rate | Tax on bracket (€) | Cumulative tax (€) |
|---|---|---|---|
| 0 - 22,000 | 0% | 0 | 0 |
| 22,001 - 32,000 | 20% | 2,000 | 2,000 |
| 32,001 - 42,000 | 25% | 2,500 | 4,500 |
| 42,001 - 72,000 | 30% | 9,000 | 13,500 |
| Over 72,000 | 35% | (Income − 72,000) × 35% | 13,500 plus 35% of excess over €72,000 |
Basis of Taxation and Tax Residency
Cyprus tax residents are generally subject to Cyprus income tax on income falling within the scope of the Income Tax Law, including relevant Cyprus and foreign-source income. Non-residents are generally taxed on income arising from sources in Cyprus that falls within the statutory charging provisions.
Individuals may qualify as Cyprus tax residents under the 183-day rule or, where the statutory conditions are met, the 60-day rule. Residency should be checked under the current law because the 2026 reform changed elements of the 60-day test.
Cyprus Corporate Income Tax Rate
From the 2026 tax year, the standard Cyprus corporate income tax rate is 15%. The previous 12.5% standard rate applied for tax years 2013 to 2025.
Separate rules can apply to exempt income, permanent establishments, intellectual property, shipping activities, group relief, Pillar Two and other specialized regimes.
Cyprus VAT Rates
The standard Cyprus VAT rate is 19%. Reduced VAT rates apply to specified goods and services under Cyprus and EU VAT law. The applicable VAT treatment depends on the nature of the supply, place-of-supply rules, exemptions and any relevant reduced-rate provisions.
Capital Gains Tax in Cyprus
Capital gains tax is generally imposed at 20% on gains from the disposal of immovable property situated in Cyprus and on qualifying disposals of shares in companies that directly or indirectly hold Cyprus immovable property, subject to statutory conditions, exemptions and double-tax arrangements.
Not every disposal of shares or investment asset is subject to Cyprus capital gains tax. The charging rules focus principally on Cyprus immovable property and qualifying property-rich entities.
Withholding Tax on Payments to Non-Residents
Cyprus does not apply one universal withholding rate to all payments. Under the Income Tax Law, specific payments to non-residents can be subject to withholding at source. Current domestic-law examples include:
| Payment | Domestic withholding rate |
|---|---|
| Royalties for use of specified intellectual or industrial property in Cyprus | 10% |
| Film rentals | 5% |
| Fees of non-resident professionals, artists and athletes covered by the relevant provision | 10% |
Applicable double-tax treaties, EU law or other statutory provisions may reduce or eliminate withholding in particular cases. Returns and payments for relevant non-resident withholding are handled through Tax For All.
Dividends, Interest and Special Defence Contribution
The Cyprus tax treatment of dividends and interest depends on tax residence, domicile status and the nature of the income. Under the 2026 reform, Special Defence Contribution on actual dividend distributions was reduced to 5% for profits earned from 1 January 2026, while Special Defence Contribution on rental income was abolished from 2026. Non-domiciled individuals and non-residents can qualify for important exemptions under the SDC rules.
Stamp Duty
The Cyprus Stamp Duty Law was repealed from 1 January 2026. Accordingly, stamp duty is not payable under the repealed regime on documents, contracts or agreements signed on or after that date.
Cyprus Social Insurance
For ordinary employed persons, the Social Insurance Fund contribution rate remains 8.8% for the employee and 8.8% for the employer, with a state contribution of 5.2%, under the contribution schedule applicable from 2024 until the next legislated increase. From January 2026, the maximum insurable earnings are €1,325 per week and €5,742 per month.
Self-employed contribution rules use insurable or notional-income bases and should be checked against the current Social Insurance Services tables for the relevant occupational category.
Tax Returns, Filing and Payment
The Cyprus tax year is the calendar year ending 31 December. From tax year 2026 onward, income tax returns are submitted exclusively through the Tax For All system.
For individual income tax returns, the statutory filing date is generally 31 July of the following year unless extended by decree. For the 2025 tax year, the official filing deadline is 31 October 2026. Separate return and payment dates apply to companies, VAT, PAYE, provisional tax and other obligations.
Official Cyprus Tax Sources
- Cyprus Tax Department - official portal
- Cyprus Tax Reform 2026
- Individual Income Tax Return and 2026 tax bands
- Company income tax returns and corporate tax rates
- Official Cyprus VAT rates
- Capital gains tax information
- Withholding tax on payments to non-residents
- Tax residency and domicile guidance
Frequently Asked Questions
What is the Cyprus corporate tax rate in 2026?
The standard corporate income tax rate is 15% from tax year 2026.
What is the Cyprus personal tax-free amount in 2026?
The first €22,000 of taxable income falls within the 0% band from 2026, subject to the applicable income-tax rules.
What is the standard VAT rate in Cyprus?
The standard VAT rate is 19%, with reduced rates for specified supplies.
Last updated: September 2, 2026. This page is a general reference only; tax treatment may differ according to residence, domicile, source of income, entity status, treaty position and the facts of a transaction.