Corporate Tax & IP Box — Cyprus
15% corporate tax from 2026 (12.5% until 2025). IP Box: 80% exemption = 3% effective rate on IP income. Extensive treaty network. No WHT on dividends out. Premier holding company jurisdiction.
Corporate Tax & IP Box
15% corporate tax from 2026 (12.5% until 2025). IP Box: 80% exemption = 3% effective rate on IP income. Extensive treaty network. No WHT on dividends out. Premier holding company jurisdiction.
Corporate Tax 15%
Flat 15% on corporate profits from 1 January 2026 (12.5% until 2025). Still among EU's lower rates. No local taxes on top.
Cyprus companies pay 0% withholding tax on dividends to shareholders (most cases). Clean profit extraction.
Extensive double tax treaty network. Reduce foreign WHT, access treaty benefits.
IP Box Regime
Qualifying IP income: 80% exempt. 15% × 20% = 3% effective corporate tax. Extremely competitive for tech/pharma.
Patents, copyrighted software, formulas developed through R&D. Must meet nexus requirements (genuine Cyprus activity).
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Non-Dom Status - 17 Years Tax Advantage
Non-Domiciled status is Cyprus's premier tax benefit. Provides 0% tax on dividends and interest for 17 years. Exempt from Special Defense Contribution. Combined with 0% capital gains creates ultimate tax-efficient regime for investors and business owners.
0260-Day Tax Residency Rule
Cyprus offers easiest tax residency in EU: just 60 days physical presence. Much lower than standard 183 days. Perfect for high-earners wanting EU residency without living full-time. Game-changer for international tax planning.
03Progressive Income Tax 0-35%
Cyprus employment and business income taxed progressively. First €22,000 tax-free (2026 tax reform). Top rate 35% only on income above €72,000. Competitive rates. Combined with Non-Dom benefits on investment income creates complete package.
04Cyprus Tax Reform 2026: What Changed
A major tax reform took effect in Cyprus on 1 January 2026 after Parliament approved it on 22 December 2025. The tax-free threshold rose from €19,500 to €22,000, the 20–35% bands moved up, and new deductions arrived for children, rent or mortgage interest and energy efficiency. For investors, SDC on dividends fell from 17% to 5%, deemed dividend distribution was abolished and crypto gains are taxed at a flat 8%. Corporate tax rose from 12.5% to 15%.
05Investment Income - Dividends, Interest, Capital Gains
Cyprus is paradise for investment income. Non-Doms: 0% dividends, 0% interest. Everyone: 0% capital gains on securities; crypto gains taxed at a flat 8% from 2026. No other major EU country offers this combination. Why wealthy investors flock to Cyprus.