Cyprus has approved a comprehensive tax reform package that has come into effect from 1 January 2026, introducing significant amendments across multiple tax legislations and reshaping the country’s tax landscape for individuals and businesses alike.
The reform touches on core areas of taxation, including Income including Income Tax, Special Defence Contribution, Capital Gains Tax, the Assessment and Collection of Taxes, the Collection of Taxes and Stamp Duty.
These changes are expected to have far-reaching implications for corporate structures, investment decisions, employment arrangements, wealth planning, compliance processes and cross-border transactions.
Intro
What’s changing
The reform includes, among others:
- An increase in the corporation tax rate to 15%
- New personal income tax bands
- Additional deductions and reliefs for individuals and families
- New tax treatment for dividends, interest, crypto transactions and share option schemes
- Stricter compliance, filing and enforcement provisions
- Abolition of stamp duty for documents signed after 1st January 2026
Our Tax Reform Package
To support organisations and individuals in understanding and preparing for the upcoming changes, our Tax team has prepared a Tax Reform Package summarising the main legislative amendments and their practical implications.
The package provides:
- A structured overview of the amended legislations
- A summary of the key changes affecting individuals and businesses
- Practical insights into areas of increased risk, compliance and opportunity
How we can help
Given the scope and technical nature of the reform, early assessment and planning will be essential.
Grant Thornton Cyprus can support you with:
- Impact assessments on existing tax positions and structures
- Personal and corporate tax planning
- Review of employment, remuneration and share-based incentive schemes
- Transaction and investment structuring
- Compliance readiness and implementation support
- For tailored advice or further information, please contact our Tax team.
