Cyprus corporate tax services from €290 a month with accounting
Cyprus taxes company profit at 15% from 1 January 2026. We calculate the tax, file every return and show each amount with its date in your account.
- Corporate tax for the year
- €45,000
- Share of the profit
- 15%
Cyprus corporate tax calculator, 2026 rate.
What a Cyprus company pays in tax in 2026, and what we file
15%Corporate income tax from 1 January 2026
A company that is tax resident in Cyprus pays 15% corporate income tax on its net profit from Cyprus and from abroad. The rate applies from 1 January 2026. A company incorporated in Cyprus is tax resident by default from that date, unless a tax treaty places it elsewhere. A company formed abroad is resident when it is managed and controlled in Cyprus.
ExemptFrom corporate tax: 3 kinds of company income
- Dividends from subsidiaries, in most cases, under the participation exemption
- Gains on the sale of shares, unless the company sold owns real estate in Cyprus
- 80% of the qualifying profit from the company's own software and patents, under the IP Box
2026No SDC, no levy, no stamp duty
From 2026 a company pays no Special Defence Contribution: its interest and rents fall under corporate tax alone. Cyprus has no municipal tax on profit, the €350 annual levy ended in 2024, and stamp duty was abolished from 1 January 2026. Dividends, interest and royalties paid abroad bear no withholding tax in most cases.
2025 is the last tax year at 12.5%. Its return is due by 31 March 2027.
The taxes of a Cyprus company and the rate of each
| Rate | Tax | What it applies to |
|---|---|---|
| 15% | Corporate income tax | Net profit of a company tax resident in Cyprus |
| about 3% | IP Box | Qualifying profit from software and patents the company developed |
| 0% | Dividends paid to shareholders abroad | No withholding tax. An associated company in a low-tax jurisdiction bears 5%, one on the EU blacklist 17%. |
| 0% | Interest and royalties paid abroad | Most interest and royalties. Royalties for rights used in Cyprus bear 10%. |
| 0% | Dividends received | In most cases: exempt under the participation exemption |
| 0% | Gains on the sale of shares | Shares, bonds and debentures. The exception is the capital gains tax in the next row. |
| 20% | Capital gains tax | Gains on real estate in Cyprus and on shares of companies that own it |
| 8% | Profit from crypto-assets | A flat rate from 1 January 2026 |
| 19% | VAT | The standard rate: VAT registration in Cyprus |
| 0% to 35% | Income tax on salaries | 0% on the first €22,000 a year, 35% above €72,000 |
What clients write about Legarithm
4.8 on Google from 26 reviews.
…they handled my Cyprus company setup while I was still in London. Smooth remote process and great communication.
We set up a company in Cyprus. Nobody pushed extra services, everything was to the point. They explain things clearly, give a real timeline and help with the tax details.
Everything is well coordinated and clear. Half an hour of the first meeting was more useful than two weeks of trying to work it out myself.
What tax services in Cyprus cost
The returns of the company are part of monthly accounting. Prices are before VAT.
Accounting with tax filings
from €290 a monthGet a quote- Tax number (TIC)
- included in formation, from €1,699
- 10 hours of consultations a year
- included in Premium, €4,999
- Transfer pricing file
- in your quote
- Advice on a transaction
- in your quote
- Non-dom declaration for the owner
- in your quote
From €100,000 of profit to the owner: a worked example
A trading company earns €100,000 of taxable profit in 2026 and pays out all that is left as a dividend. Its owner lives in Cyprus and holds non-dom status in Cyprus.
| Step | Rate | Amount |
|---|---|---|
| Taxable profit | €100,000 | |
| Corporate tax | 15% | €15,000 |
| Dividend | €85,000 | |
| Special Defence Contribution (SDC) of a non-dom owner | 0% | €0 |
| GeSY, the health contribution | 2.65% | €2,252.50 |
| Reaches the owner | 82.7% of the profit | €82,747.50 |
€85,000Reaches an owner abroad with no tax withheld
An owner who lives abroad receives the €85,000 with no Cyprus withholding tax. An owner domiciled in Cyprus pays 5% SDC on the dividend, €4,250, and keeps €78,497.50.
€3,000The same profit under the IP Box
Under the IP Box the same profit bears €3,000 of corporate tax, because 80% of it is deducted first, and the dividend rises to €97,000.
GeSY is charged on up to €180,000 of a person's income a year, so it stops at €4,770.
What our Cyprus tax services cover
We compute the taxable profit from your books, set off earlier losses and file the yearly return in the Tax Department's portal. From 2026 a loss carries forward for 7 years.
We estimate the year's profit, declare it and revise the figure until 31 December when the business grows or slows, so the 2 instalments match what the company earns.
We register a new company in the Tax Registry within the 60 days the law gives and obtain its tax number (TIC). With company formation in Cyprus the number comes in the package.
When the company trades with related companies, we set the pricing policy and prepare the file the Tax Department asks for. A local file is due once such trade passes €5 million a year in goods, €2.5 million in services or €10 million in financing.
Before a dividend, a loan or a new contract we tell you how Cyprus taxes it and which of its 65+ tax treaties applies.
For an owner who moves to Cyprus we file the non-dom declaration and the personal return, and we run payroll in Cyprus for the staff. The Cyprus tax calculator sets salary against dividends in figures.
The deductions that lower the 15%: IP Box, research costs, new equity
- IP Box: 80% of the profit deducted
- The IP Box deducts 80% of the qualifying profit from intellectual property. The 15% rate applies to the remaining 20%, an effective rate of about 3%.
- What qualifies for the IP Box
- Patents, copyrighted software and utility models, in proportion to what the company spent on developing them itself. Royalties, licence fees and the IP income inside the price of a product all count. The formula is in the guide to the Cyprus IP Box.
- Notional interest deduction
- New equity paid into the company since 2015 earns a deduction: the equity multiplied by the 10-year government bond yield plus 5%, up to 80% of the profit that equity produces.
- Research and development
- Until 2030 a company deducts 120% of what it spends on research and development. One asset takes either this deduction or the IP Box, and we compute which of the two leaves less tax.
- We calculate and claim them
- We work out each deduction from your books, keep the record of development costs behind the IP Box and claim the amounts in the tax return.
Corporate tax return and provisional tax in Cyprus: dates and fines for a late filing
A Cyprus company's tax year is the calendar year. The fine is what the Tax Department charges for a late filing or payment.
| Filing or payment | Due | Fine if late |
|---|---|---|
| Provisional tax: estimate and first half | 31 July of the tax year | 10% of the tax underpaid when the estimate is under 75% of the final profit |
| Provisional tax: second half | 31 December of the tax year | 5% of the tax, 5% more after 2 months, plus interest of 3.5% a year |
| Tax return for 2025 | 31 March 2027 | €250, or €500 for a company with turnover or assets above €1 million |
| Tax return for 2026 | 31 January 2028 | €250 or €500, by the same test |
| Balance of the 2026 tax | 31 January 2028, with the return | 5%, 5% more after 2 months, plus interest |
How we take over your Cyprus company's tax filings
- day 11
You authorise us
You sign one authorisation in your account, and we receive access to the company's file with the Tax Department.
- then2
We review what is filed
We check the returns, the provisional tax and the payments of earlier years and list what is due and what is overdue.
- by 31 July3
We estimate the year
We declare the provisional tax from your books and tell you each instalment ahead of its date. The Cyprus tax calendar for 2026 and 2027 has every deadline.
- after the audit4
We prepare the return
After the audit, for which accounting in Cyprus prepares the file, we compute the tax, claim the deductions and send you the return to approve.
- by 31 January5
We file, you pay
We file the return. You pay the balance from the company's bank account in the Tax Portal.
What we need to file your Cyprus company's taxes
Documents
To start
- Certificate of incorporation and tax number
- Last financial statements and tax return
- Provisional tax declarations of the current year
- Contracts with related companies and shareholders
- A list of the software and patents the company owns
Each year
- The books, or the documents for us to keep them
- Dividends you plan to pay
- New loans, share issues and large contracts
You send them in your account. We check each document the day it arrives and tell you what is missing.
See the platformQuestions about Cyprus corporate tax services
What is the corporate income tax rate in Cyprus in 2026?
15% of net profit. The guide to the Cyprus corporate tax rate in 2026 shows how the taxable profit is worked out.
Who is eligible for the 50% tax exemption in Cyprus?
An employee who takes up work in Cyprus after 15 years away, in a first job there that pays more than €55,000 a year. The guide to income tax in Cyprus has the other conditions.
Do foreigners pay tax in Cyprus?
A person who is tax resident in Cyprus pays income tax on income from Cyprus and from abroad, at 0% on the first €22,000 a year and up to 35% above €72,000. A non-resident pays on income from Cyprus alone.
How are dividends taxed in Cyprus?
A person abroad receives the dividend with no Cyprus withholding tax. A shareholder in Cyprus pays 5% Special Defence Contribution, or 0% with non-dom status, and 2.65% to GeSY: how to distribute dividends in Cyprus.
Is there capital gains tax in Cyprus?
Yes, 20% on gains tied to real estate in Cyprus. The guide to Cyprus capital gains tax has the calculation, the exemptions and the forms.
What is provisional tax in Cyprus?
Corporate tax paid in advance on the profit the company expects for the year, in 2 equal instalments by 31 July and 31 December. The yearly return settles the difference.
Does Cyprus have double tax treaties?
Yes, with more than 65 countries. Before a payment crosses a border we check which treaty applies and what it leaves to each country.
Get a quote for your Cyprus company
Book a 30-minute call about your company
Your consultant Vladyslav Babaiev Opens in a new tab Business Setup Specialist
- We email you the Google Meet link.
- 30 minutes, free, no obligation to order.
- After the call we email you the checklist of documents for your country.
We reply by the end of the next working day with the cost and the dates for your case. The first call is free and confidential.
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Updated 21 October 2026. Reviewed by Vladyslav Drapii, Founder.
