Corporate Tax Rate and Benefits in Cyprus 2026
– Corporate Tax 15%, Process & Benefits (2026 Guide)
Cyprus is one of the most reliable and competitive jurisdictions in the European Union for company formation by foreign entrepreneurs.
Following the latest tax reform, Cyprus offers a stable 15% corporate tax rate, EU credibility, and a transparent legal framework aligned with international standards.
This guide explains what applies today, who can open a company in Cyprus, and whether it is the right solution for your business.
Why Open a Company in Cyprus?
Cyprus combines low corporate taxation, EU status, and business-friendly regulation.
Key advantages
- Corporate tax: 15% (from 1 January 2026)
- Full EU member state
- English common law legal system
- 100% foreign ownership
- Extensive Double Tax Treaty network
- Ideal for international & online businesses
- Strong banking and partner acceptance
Who Can Open a Company in Cyprus?
Company formation in Cyprus is available to:
- EU citizens
- Non-EU citizens
- Consultants & freelancers
- Digital entrepreneurs
- Startups and holding companies
✔️ No physical presence required for incorporation.
Company Types in Cyprus
Private Limited Company (Ltd)
- Limited liability
- Separate legal entity
- Suitable for services, SaaS, consulting, trading
- Fully accepted within and outside the EU
Company Formation Process (Step-by-Step)
- Company name approval
- Preparation of legal documents
- Registration with the Registrar of Companies
- Tax registration (VAT if applicable)
- Bank account opening
- Accounting & annual compliance
⏱️ Average timeframe: 7–14 business days
Corporate Tax in Cyprus – What Applies Today
Under the new tax reform:
- Corporate tax rate: 15%
- Applicable for fiscal years starting 1 January 2026
- Fully aligned with OECD Global Minimum Tax
The previous 12.5% rate applied to earlier tax years only.
What Has NOT Changed
- 0% withholding tax on dividends to non-residents
- 0% capital gains tax (except Cyprus real estate)
- Transparent EU-compliant tax system
- Strong legal certainty and predictability
➡️ Cyprus remains a low-risk, long-term jurisdiction.
Frequently Asked Questions (FAQ)
Is corporate tax in Cyprus 15%?
Yes. The corporate tax rate is 15% for tax years starting from 1 January 2026.
Is Cyprus an offshore jurisdiction?
No. Cyprus is a fully compliant EU member state.
Is Cyprus still competitive?
Yes. The 15% rate remains among the lowest in the EU, combined with strong legal and banking credibility.
Last updated: 2026
Information based on current Cyprus tax legislation.
Contact L.A. Law Firm today for reliable legal support and professional guidance.
