Cyprus vs Iceland
Corporate Tax Comparison
Time of Update: Cyprus: 4/05/2026 / Iceland: 4/04/2026
Compare Cyprus and Iceland corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Cyprus vs Iceland Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Cyprus
Iceland
General CIT Rate:
12.5
General CIT Rate:
20 (for LLCs and limited partnerships); 37.6 (for other entities)
CIT Return Due Date:
Tax due on March 31 of the second year after the calendar year.
CIT Return Due Date:
31 May
CIT Payment Due Date:
The relevant tax is due on August 1 of the year following the calendar year.
CIT Payment Due Date:
November 1st and December 1st
CIT Estimated Payment Due Date:
Payment in installments of equal amounts on July 31 and December 31 of the relevant tax/calendar year.
CIT Estimated Payment Due Date:
Except for January and October, prepayments should be made on the first day of each month.
Withholding Tax (WHT)
Cyprus
Iceland
Resident Withholding Tax (Dividend/Interest/Royalty):
0/17/0
Resident Withholding Tax (Dividend/Interest/Royalty):
22/22/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
21/13/22
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Cyprus
Iceland
General Capital Gain Tax Rate:
20
General Capital Gain Tax Rate:
20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
Effective Tax Rate (ETR)
Cyprus
Iceland
Composite Effective Average Tax Rate:
11.4%
Composite Effective Average Tax Rate:
18.79%
Composite Effective Marginal Tax Rate:
5.92%
Composite Effective Marginal Tax Rate:
14.93%
