Cyprus's headline corporate income tax (CIT) rate is 15 (as of 1 January 2026; 12.5% prior).
The headline personal income tax (PIT) rate is 35.
The standard VAT/GST (or equivalent consumption tax) rate is 19. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Since 2017, an individual is a Cyprus tax resident under either of two tests. The "183-day rule": presence in Cyprus for more than 183 days in the calendar year, no further conditions required. The "60-day rule" (for internationally mobile individuals): presence in Cyprus at least 60 days, not present in any single other state for more than 183 days, carrying on business/employment in Cyprus or holding a directorship in a Cyprus-resident company during the year, and maintaining an owned or rented permanent residential property in Cyprus. As of a January 2026 reform, the former fifth condition - not being tax resident anywhere else - was removed; dual residency is now permitted and resolved via treaty tie-breaker rules where applicable. Non-resident companies are taxed only on Cyprus permanent-establishment income or specific Cyprus-source income.
Cyprus's CFC regime (effective since January 1, 2019) applies where a Cyprus CIT payer, alone or with associated enterprises, holds a direct or indirect interest of more than 50% in a low-taxed non-Cyprus company (or a low-taxed exempt foreign permanent establishment). The Cyprus parent must include in taxable profit the CFC's non-distributed income to the extent it arises from non-genuine arrangements put in place for the essential purpose of obtaining a tax advantage.
Cyprus has no fixed debt-to-equity ratio. An ATAD-based interest limitation rule caps deductible exceeding borrowing costs at 30% of taxable EBITDA, with an annual EUR 3 million safe-harbor threshold below which the rule does not restrict deductions at all. Unused interest capacity can be carried forward five years, subject to anti-abuse restrictions on ownership changes.
Cyprus maintains more than 65-67 double tax treaties, one of the most extensive networks in the EU, spanning the UK, US, Germany, Russia, China, India, and most EU member states. Notably, a Cyprus-France treaty signed in 2021 (after Cyprus and France had no DTT for years, creating cross-border uncertainty) was finally approved by the French Senate on February 20, 2026, and remained pending final exchange of ratification instruments as of the most recent verification.