Cyprus: Tax

Romania's 2026 reforms raised the tax on dividends and capital gains to 16%, while Cyprus leaves Non-Dom dividends outside Special Defence Contribution entirely.

A Cyprus holding company is one of the most powerful tools available to founders, investors and group owners who want to move profits, reinvest and plan exits without losing value through unnecessary tax leakage and withholding taxes.

Malta residents considering Cyprus face a strategic choice between two EU jurisdictions with fundamentally different tax architectures. While Malta's remittance-basis system demands constant tracking and substance requirements have tightened around the corporate refund, Cyprus offers structural simplicity: a 0% dividend exemption that applies regardless of remittance, a 15% corporate rate with no engineering required, and a 60-day residency rule now accessible even during dual-residence transitions.

When a person passes away leaving assets in Cyprus, those assets cannot usually be transferred immediately to relatives or beneficiaries.

A quiet revolution is taking place across the Mediterranean. As 2025 unfolds, discerning high-net-worth individuals from the UK are discovering Cyprus, not as a tax haven in the traditional sense...

From 6 April 2025, the United Kingdom moved to abolish the long-standing non-domicile regime, replacing it with a far more limited four-year foreign income and gains (FIG) exemption.

Cyprus is positioning itself as a leading jurisdiction for high-net-worth individuals seeking sophisticated wealth structuring and tax planning solutions. With its non-domicile regime, evolving tax framework, and robust trust legislation, the jurisdiction offers internationally mobile families a comprehensive approach to preserving and transferring wealth across generations within a stable EU environment.

Romania's 2026 reforms raised the tax on dividends and capital gains to 16%, while Cyprus leaves Non-Dom dividends outside Special Defence Contribution entirely.

When the OECD's Pillar Two global minimum tax rules were first announced, many predicted they would fundamentally reshape international tax planning and reduce the attractiveness of traditional holding and headquarters jurisdictions.

A Cyprus holding company offers founders, investors, and group owners a strategic vehicle to move profits, reinvest capital, and plan exits while minimizing tax leakage and withholding taxes.

Cyprus corporate tax changed materially on 1 January 2026. The headline change is the corporate tax rate, which rose from 12.5% to 15%. But the reform package went further, touching loss carry-forward..

The Cyprus transfer pricing landscape changed materially with N.244(I)/2025, which amended Article 33 of the Income Tax Law as part of the broader 2026 reform package. From 1 January 2026, the thresholds that determine whether your Cyprus subsidiary must keep a Cyprus Local File have been raised significantly. Many group controllers will read this as good news.