Cyprus

Standard Corporate Income Tax Rate:
Cyprus has a standard corporate income tax of 15%. All Cyprus tax resident companies are required to be taxed on their accrued income, regardless of whether it is sourced from within or outside Cyprus. Cyprus' corporate income tax law provides for tax exemptions for many incomes, profits and gains.

Special Contribution to National Defence (SDC)
Special Defence Contributions are only available for non-tax-exempt dividend income. Dividend income can be exempt from special defense contributions based on the participation exemption criteria.
From 1 January 2026, a company's interest income is taxed under corporate income tax and is exempt from SDC, and its rental income is subject to corporate income tax only.

Withholding tax (WHT) rates in Cyprus differ for residents and non-residents. For resident corporations, dividends and interest are generally exempt from WHT; from 1 January 2026, a company's interest income is taxed under corporate income tax and is exempt from SDC. Non-residents benefit from 0% WHT on dividends and interest, with a 10% rate on royalties if the rights are used within Cyprus. However, higher rates may apply if the recipient is from a jurisdiction listed on the EU blacklist.

Payroll Tax:
In addition to the employer's own contributions to the employee's gross salary, the employer is also responsible for deducting the employee's contribution to the Social Insurance Fund, the General Health Care System (GHS) and the Pay-As-You-Go (PAYE) system from the employee's income.

Social security insurance:
Employed persons are compulsorily insured by the State Social Insurance Fund. Contributions to the fund are shared between the employee and the employer. Employers calculate their contributions as a percentage of the employee's earnings. Employers also contribute to other funds as listed in the table below:

1. social insurance fund: 8.8%;
2. unemployment insurance: 1.2;
3. training and development fund: 0.5;
4. social solidarity fund: 2.0;
5. general health system contribution: 2.90;
6. Vacation Fund (if not exempt): 8.0.

Overview of import and export taxes:
Many imported goods from outside the EU are subject to customs duties and excise duties. The tariffs and rates applied to different goods vary widely and change frequently.
Excise duty is levied on certain consumer goods such as cigarettes, cigars, mineral oil, alcohol products. If it is used only as a raw material, no consumption tax is levied. If the goods are exported, the excise duty can be refunded.

Personal income tax (PIT) in Cyprus can reach up to 35% depending on the income level of the individual. The deadlines for tax returns and payments vary based on the taxpayer's profile. From tax year 2026, the balance is due with the return: by 31 July of the following year, or by 31 January of the second year where the accounts must be audited or reviewed. Estimated payments are required by July 31 of the current tax year, helping individuals stay on track with their tax responsibilities.