Taxes simplified, savings maximized.

Any individual or entity registered in the Republic of Cyprus and whose the value of taxable transactions of goods and services carried out over the 12 preceding months – or which will be carried out within the next 30 days – exceeds or will exceed €15,600.

VAT returns must be filed quarterly, before the 10th of the second month following the quarter.

Register an IBAN at VAT offices and submit a claim through the Tax Department’s online platform.

Submit VAT Form 204 and an additional information questionnaire. Deregistration is required when a business ceases operations, stops taxable transactions, or was never eligible. Voluntary deregistration is allowed if turnover is expected to drop below €13,669 in the next 12 months.

If the correction is below €1,708.60 and within 3 years, it can be adjusted in the VAT form. Otherwise, special permission from the Tax Department is required, which can be obtain through a request from the Tax Department’s online platform.

VAT invoices, purchase invoices, import/export documentation, and any other relevant VAT transaction records.

The standard corporate tax rate is 15%.

The standard VAT rate is 19%.

The withholding tax varies from the tax status of the recipient company. The tax rate can be 17%/5%/0%.

It really depends on the activities and foreign tax burden of the paying company.

The rate for defence tax on dividend income is 5%.

The capital gains tax rate is 20%.

The current rate for interest income earned by domiciled individuals is 17%.

The tax free amount is €22,000.

Yes, non-domiciled individuals are exempt from defence tax (SDC) on dividends and interest for 17 years. Under the 2026 tax reform, this exemption can now be extended for up to two additional 5-year periods (10 years in total), upon payment of a €250,000 lump sum per period.

Yes, they are exempted from the payment of defence tax for a period of 17 years.

The threshold as from 01/01/2026 is €5.000.000 for the trading in goods category, €10.000.000 for financing transactions and €2.500.000 in all other categories (e.g. Intellectual Property transactions).

On 12 December 2024, the Cyprus Parliament approved the Global Minimum Tax Assurance for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union Act of 2024, officially transposing the EU Pillar Two Directive into national law.

Pillar 2 applies to multinational enterprise groups (MNEs) and large-scale domestic groups with annual revenue exceeding €750 million.

Pillar 2 is effective for fiscal years starting on or after 31 December 2023.

Cyprus Income Tax Law provides for a special regime for companies exploring Intellectual Property rights.

The income tax exemption may be up to 80% of the total profits resulting in an effective rate of 3%.

Employment criteria for third-country nationals in companies with foreign interests, including salary and qualifications.