Cyprus Tax Reform 2026: Verified Rates and Changes

Cyprus tax reform took effect from tax year 2026. This page records the principal verified changes used elsewhere on this website; it is not a substitute for the enacted legislation or a taxpayer-specific transition analysis.

Individual income-tax bands from 2026

The bands are marginal and apply to taxable income after only those deductions and exemptions for which the taxpayer qualifies. New family, housing and green deductions have specific conditions and caps and should not be assumed from a label.

Corporate income tax

The standard Cyprus corporate income-tax rate is 15% from tax year 2026. Existing articles using 12.5% are historical for earlier tax years. The IP Box 80% nexus deduction can produce an effective 3% rate only on qualifying IP profit.

Rent and Special Defence Contribution

Rental income is no longer subject to SDC from tax year 2026. It remains within income-tax rules and can attract 2.65% GHS for an individual within the shared EUR 180,000 cap. The statutory building-rent deduction, capital allowances, interest, VAT and company treatment must be calculated separately.

Non-dom and Article 3D

The existing deemed-domicile framework must be distinguished from any separate SDC election introduced by the reform. A payment or election leaves the person's non-dom expiry unchanged, does not remove GHS or income tax and must be made only under the enacted conditions and official procedure.

Returns and transition

The filing platform and deadlines depend on taxpayer type and tax year. The Tax Department states that the company income-tax return for tax year 2026 is due by 31 January 2028. Individual filing moves through Tax For All under the published year-specific procedure. Do not copy a prior-year deadline into 2026 content.

Primary sources: the Tax Department's Tax Reform 2026 hub, individual return and bands and company return guidance.