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 

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. 

The Bottom Line: Cyprus now offers:

• Lower transaction costs (no stamp duty)

• Predictable corporate and personal taxes

• Long-term incentives for innovation and IP

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.