Cyprus Tax Reform 2026: What Investors and Relocators Need to Know

Cyprus continues to attract tax relocators, both private individuals and companies, thanks to its transparent system, non-dom status, and business incentives. Starting 1 January 2026, several key tax changes come into effect, affecting corporate and personal taxation.

Corporate Tax Changes

• Corporate income tax rises from 12.5% to 15%, aligning Cyprus with the OECD global minimum tax.

• Stamp duty abolished — previously a tax on legal documents, property deals, and share transfers, typically 0.15–0.2% of the transaction value. This reduced transaction costs for companies and for real estate deals, including resale property in Cyprus.

• Loss carry-forward extended to 7 years, allowing companies to offset past losses against future profits for a longer period.

Business Incentives Remain Strong

• NID (Notional Interest Deduction): allows a deduction on new equity as if the company paid interest, lowering the effective corporate tax to ~3%.

• IP Box: up to 80% of qualifying intellectual property income is exempt from corporate tax.

• R&D Super Deduction: allows 120% deduction of qualifying research and development expenses — spend €100, deduct €120, actively encouraging innovation and technological growth.

Crypto Assets

• Profits from crypto (sale, exchange, donation, or use as payment) taxed at 8% flat.

• Losses can offset only crypto profits in the same year.

Individual Tax Changes

• Non-dom status extendable up to 27 years: 17 years standard + 2 optional 5-year periods (€250,000 each). Non-doms are exempt from SDC (Special Defence Contribution) on dividends, interest, and rental income.

• 60-day tax residency rule simplified — easier to qualify as a Cyprus tax resident.

Progressive income tax bands: 

• 0% up to €22,000,

•  20% €22,001–32,000,

•  25% €32,001–42,000, 

• 30% €42,001–72,000, 

• 35% above €72,000.

Why This Matters for Real Estate Investors

For those looking for property in Cyprus, these reforms make tax planning clearer. Non-dom residents can now maximize after-tax income on rental or investment properties. Companies benefit from predictable corporate taxation and reduced transactional costs — especially for real estate investments.

The Bottom Line: Cyprus now offers:

• Lower transaction costs (no stamp duty)

• Predictable corporate and personal taxes

• Long-term incentives for innovation and IP

• Tax-efficient residency for non-dom investors

Whether relocating or investing, the island’s reforms provide clarity and tangible benefits, making Cyprus one of the most attractive destinations for business and property investment.