Tax and compliance in Cyprus

Snapshot

Cyprus charges corporate income tax at 15 percent from 1 January 2026, up from 12.5 percent, to align with the global minimum tax. The standard VAT rate is 19 percent, with reduced rates of 9 and 5 percent, and VAT registration is generally required once taxable turnover passes 15,600 euro in a 12 month period. Companies register with the Tax Department and, where they employ people, with Social Insurance, and file annual accounts and tax returns.

Corporate income tax: 15 percent from 1 January 2026, raised from 12.5 percent. As of 16 November 2025.
VAT: Standard rate 19 percent, with reduced rates of 9 and 5 percent. Registration threshold 15,600 euro of taxable turnover in 12 months.
Registrations: Tax Department for income tax and VAT, and Social Insurance where the company employs staff.
Banking link: Banks apply anti money laundering checks and expect the account to be used for the company, kept separate from personal funds.

Fees and features as of 16 November 2025Last reviewed 16 November 2025

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

As of 16 November 2025, the headline business taxes in Cyprus are corporate income tax and VAT. The corporate income tax rate rose to 15 percent from 1 January 2026, up from 12.5 percent, to align with the global minimum tax standard. The standard VAT rate is 19 percent, with reduced rates of 9 percent and 5 percent on certain goods and services, and a business must generally register for VAT once taxable turnover exceeds 15,600 euro in a 12 month period, with no threshold for some non resident supplies. Companies register with the Tax Department for income tax and VAT, and with Social Insurance where they employ people, and they file annual accounts and tax returns. This is general information, not tax advice, so confirm your obligations with the Tax Department or a qualified adviser.

Business tax basics in Cyprus

Cyprus is a euro area member with a tax system that is widely used by international companies. The two taxes most businesses meet first are corporate income tax on profits and value added tax on sales. The figures here are general information and not tax advice, and rules change, so confirm your position with the Tax Department or a qualified adviser. As of 16 November 2025.

Corporate income tax

The corporate income tax rate is 15 percent from 1 January 2026, raised from 12.5 percent to align with the global minimum tax standard. Cyprus tax resident companies are taxed on worldwide income, with management and control in Cyprus a key test of residence. The reform also extended the period for carrying forward tax losses. Confirm how the rules apply to your company with the Tax Department or an adviser.

Value added tax

The standard VAT rate is 19 percent, with reduced rates of 9 percent and 5 percent on certain goods and services such as hospitality, food, medicines, books and public transport. A Cyprus established business generally must register for VAT once taxable turnover exceeds 15,600 euro within a 12 month period, and some non resident supplies must register from the first taxable supply. Verify the current thresholds and rules with the Tax Department.

Registrations and the bank account

Companies register with the Tax Department for a tax identification number and, where they make taxable supplies above the threshold, for VAT, and with the Social Insurance Services where they employ people. A business bank account supports compliance by keeping company income and expenses separate from personal funds, which makes bookkeeping, VAT returns and the annual audit clearer. Banks apply anti money laundering checks and monitor that the account is used for the stated business activity.

What to keep in order

Compliance points to track, as of 16 November 2025. Confirm with the Tax Department or an adviser

Registration for income tax, for VAT once the threshold is met, and for Social Insurance if you employ people.
Accurate bookkeeping, with company funds kept separate from personal funds.
Filing of VAT returns, annual financial statements and the corporate tax return on time.

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Questions about tax and compliance in Cyprus

What is the corporate tax rate in Cyprus?

The corporate income tax rate is 15 percent from 1 January 2026, raised from 12.5 percent to align with the global minimum tax. This is general information, not tax advice, so confirm how it applies with the Tax Department or an adviser, as of 16 November 2025.

What is the VAT rate in Cyprus?

The standard VAT rate is 19 percent, with reduced rates of 9 percent and 5 percent on certain goods and services. Verify the current rates and which apply to you with the Tax Department, as of 16 November 2025.

When must a Cyprus business register for VAT?

A Cyprus established business generally must register once taxable turnover exceeds 15,600 euro within a 12 month period, and some non resident supplies must register from the first taxable supply. Confirm the current thresholds with the Tax Department, as of 16 November 2025.

Do I need a business bank account for tax compliance in Cyprus?

It is not a tax in itself, but a separate business account keeps company income and expenses apart from personal funds, which makes VAT returns, bookkeeping and the annual audit clearer. This is general information, not tax advice, so confirm your obligations with an adviser, as of 16 November 2025.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 16 November 2025. Confirm current terms with the provider before applying.