The Ultimate EU Holding
Cyprus Corporate Tax Calculator: The definitive tool for international business owners and local entities to navigate the 15% corporate tax landscape.
Legal Notice & Accuracy: This calculator and guide are updated following the official publication of the 2026 Tax Reform Bills.
All calculations are reviewed by our senior tax compliance team at Cyprus Company Formation.
Post-2026 Reform: 15% Rate & OECD Pillar Two Alignment
As of January 1, 2026, the Cyprus corporate tax landscape has shifted. To align with EU directives and the Global Minimum Tax (Pillar Two), the statutory corporate tax rate has increased from 12.5% to 15%.
However, new incentives and expanded deductions ensure Cyprus remains a highly competitive hub for international business.
Effective January 1, 2026, the Cyprus tax landscape has shifted to align with OECD Pillar Two global minimum tax standards. While the headline rate has increased, Cyprus remains a premier destination for corporate entities due to its extensive relief systems.
To determine your company’s tax liability, you must calculate the Net Taxable Profit by following these four steps:
Start with your total revenue minus all business-related expenses (salaries, rent, utilities, etc.).
Certain expenses are not tax-deductible in Cyprus, such as:
If your company has introduced “New Equity” (capital introduced after Jan 1, 2015), you can deduct a “notional” interest expense. This can reduce your taxable profit by up to 80%.
Multiply the remaining Net Taxable Profit by 0.15.
Cyprus continues to offer one of the strongest Intellectual Property (IP) regimes in Europe. Under the “Nexus” approach:
Calculations Verified by Cyprus Tax Specialists” This calculator is maintained by the legal and audit team at Cyprus Company Formation. All formulas are cross-referenced with the Income Tax (Amending) Law of 2025 and official circulars from the Ministry of Finance
The Cyprus corporate income tax rate for 2026 is 15%, following the global minimum tax alignment.
Yes, but with the 80% deduction regime, qualifying software and IP profits can see an effective tax rate of just 3%.
Take your annual net profit, adjust for non-deductible expenses, subtract your Notional Interest Deduction (NID) or IP Box allowances, and apply the flat 15% rate to the remainder.
No. There is no minimum corporate tax in Cyprus; you only pay 15% on actual net profits. If your company records a loss, you can carry that loss forward for 5 years to offset future profits.
While Corporate Tax rose to 15%, the SDC tax on dividends for domiciled residents was slashed to 5%, and it remains 0% for Non-Domiciled owners. This balance keeps the “total tax take” for business owners among the lowest in the EU.
Dividend income received by a Cyprus tax resident company from another Cyprus tax resident company is generally exempt from Corporate Income Tax.
