In January 2026, Cyprus implements one of the most significant personal tax reforms of the past decade. The Cyprus Tax Department has issued an official Explanatory Guide clarifying how the new rules apply to individuals who are tax residents of Cyprus, with effect from the 2026 tax year (returns filed in 2027). This article provides a clear, structured, and practical overview of the reform and its implications. Official Guidance and forms can be found here: https://www.mof.g

Effective 1 January 2026 , Cyprus will implement the most significant tax reform in decades. On 22 December 2025 , the Cyprus House of Representatives voted to approve the key tax reform bills , marking the first major overhaul of the tax system in over 20 years. The reform package was built around six legislative bills prepared by the Ministry of Finance and debated in Parliament following extensive public consultation and stakeholder input. Below is a structured explanatio

Understanding transfer pricing is essential for businesses operating in Cyprus, especially those involved in cross-border transactions...

Cyprus has become a popular destination for individuals and businesses seeking favorable tax conditions and a high quality of life. Its...

On 30 June 2022, a package of measures containing comprehensive transfer pricing (“TP”) requirements for businesses has been voted into...

The Cyprus IP Box is a tax incentive scheme that grants eligible corporations an up to 80% tax deduction on qualifying profits, which...

We are delighted to share our Tax Residency Guide 2022/2023 which covers the current tax incentives available for foreign investors...

On 9th of June 2022, the House of Representatives passed amendments to the Companies Law imposing a small company audit exemption. The...