Europe · Tax guide
Cyprus
Cyprus raised its corporate tax to 15% from 2026, charges VAT at 19%, offers an IP box, levies no withholding on most dividends and interest paid abroad, and applies a domestic minimum top-up tax. Taxes are administered by the Tax Department.
At a glance
- Corporate income tax
- 15%
- VAT
- 19%
- Royalties for rights used in Cyprus
- 10%
- Domestic minimum top-up tax
- 15%
From 2026
Registration above €15,600
Withholding
Large multinational groups
Corporate income tax
Companies pay 15% from 2026. Qualifying intellectual property income can use the IP box for a much lower effective rate. Provisional tax is paid in July and December.
VAT
VAT is 19%, with several reduced rates. Registration is required once taxable supplies exceed €15,600 in twelve months; returns are quarterly.
Withholding tax and the minimum tax
Dividends and interest paid to non-residents generally carry no withholding, except to low-tax jurisdictions. Royalties for rights used in Cyprus carry 10%.
Large multinational groups pay Cyprus's domestic minimum top-up tax and the income inclusion rule at 15%.
Key dates
- QuarterlyVAT return
- 31 July and 31 DecemberProvisional corporate tax instalments
Figures and sources
5 figures- Corporate income tax rate15%Under professional review
- Standard VAT rate (9%, 5% and 3% reduced)19%Under professional review
- Annual taxable supplies above which VAT registration is required€15,600Under professional review
- Withholding on royalties for rights used in Cyprus10%Under professional review
- Domestic minimum top-up tax rate15%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Cyprus based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Cyprus (a Cyprus tax adviser) before making compliance decisions.