Taxes
Cyprus — Tax: Corporate Income Tax
Cyprus applies a corporate income tax rate of 12.5%, one of the EU's lowest. Large multinational enterprises subject to global minimum tax provisions may face a 15% rate. Companies must register with the Tax Department and file annual returns. Cyprus offers competitive tax incentives for investments and specific sectors.
Why this matters
The low corporate tax rate makes Cyprus attractive for business incorporation, but multinational firms face 15% under OECD global minimum tax rules.
Key facts
- Standard corporate income tax rate: 12.5% (gov.cy/mof/en/)
- Large multinational enterprises subject to OECD global minimum tax (15%) effective 2025 (gov.cy/mof/en/)
- Cyprus-registered companies taxed on Cyprus-sourced income; foreign-registered companies taxed only on Cyprus-source (gov.cy/mof/en/)
- Companies must register with the Registrar of Companies and Tax Department; filing annual corporate tax return mandatory (gov.cy/mof/en/)
- Corporate tax incentives available for investments in research, innovation, and certain sectors; details at gov.cy/mof/en/documents/tax-incentives/
- Dividend income, capital gains, and interest income have separate tax treatment; some categories may be tax-exempt under specific conditions (gov.cy/mof/en/)
- Companies pay corporate income tax on net profit after deducting allowable business expenses
Registration & Filing
Companies must register at the Registrar of Companies (gov.cy) and Tax Department (mof.gov.cy). Annual corporate tax return filing is mandatory within specific deadlines.
Tax Incentives
Cyprus offers incentives for R&D investments, innovation, and certain sectors. Tax holidays and reduced rates may apply; consult Ministry of Finance for current schemes.