Cyprus Tax Reform: This Analysis Has Been Consolidated
Last updated: 20 July 2026
Read the complete, current guide instead: this page's analysis of the Cyprus tax reform has been consolidated into our full enacted-law guide — Cyprus Tax Reform 2026: What Businesses, Directors & Investors Must Know. That guide is maintained as the single, authoritative Connor Legal resource on the reform and reflects the laws as enacted and in force since 1 January 2026.
This page originally analysed the Cyprus tax reform at proposal stage in February 2025, while the bills were still under consultation. The reform was voted by the House of Representatives on 22 December 2025, published in the Official Gazette on 31 December 2025 as a package of six amending laws, and took effect on 1 January 2026. Several enacted figures differ from the proposal-stage numbers that circulated during 2025, which is why the firm now maintains one consolidated guide rather than parallel analyses.
The enacted reform at a glance
- Corporate income tax: 12.5% → 15% for all Cyprus companies; tax losses carried forward seven years.
- Dividends: SDC for Cyprus-domiciled individuals cut from 17% to 5% on post-2026 profits (non-doms remain 0%); deemed dividend distribution abolished prospectively, with transitional deadlines for 2024 and 2025 profits.
- Personal tax: tax-free band raised to €22,000; the 35% top rate applies above €72,000; new 8% flat regimes for crypto-asset gains and employee share options.
- Stamp duty: abolished for documents signed from 1 January 2026.
- Directors: personal liability for company tax defaults expressly survives resignation, with new enforcement powers.
Full detail on each of these — including the transitional dividend deadlines, the enacted deduction amounts and the compliance calendar — is in the consolidated 2026 guide. For how the reform lands on specific situations, see our guides on business tax planning, the 60-day rule and non-dom status, and directors' duties.
Speak to Connor Legal
Connor Legal advises companies, directors and investors on the enacted reform — from dividend and transitional-deadline planning to director-liability reviews. To discuss what the new law means for your structure, contact the firm.
