Cyprus Corporate Income Tax
Detailed corporate income tax rates and rules for Cyprus in 2026.
Cyprus levies corporate income tax at 15% (increased from 12.5% effective January 1, 2026 to comply with OECD Pillar Two global minimum tax requirements). The IP box regime provides an 80% exemption on qualifying IP income, resulting in an effective rate of 3%. The participation exemption covers dividends from qualifying subsidiaries and capital gains on disposal of shares. There is no withholding tax on dividends, interest, or royalties paid to non-residents.
Standard Rate
15%
Additional Notes
Cyprus increased its corporate tax rate to 15% from January 2026 to align with the OECD Pillar Two global minimum tax for large multinationals. Notional interest deduction (NID) on new equity allows deductions based on a reference rate. Ship management and shipping companies benefit from the tonnage tax regime. Tax losses can be carried forward indefinitely. Group relief is available for Cypriot group companies.
How Cyprus Corporate Tax compares
Cyprus’s corporate tax rate of 15% is the 162nd highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
