A new rate for the 2026 tax year
Cyprus increased its corporate income tax rate from 12.5% to 15% from the 2026 tax year. Overseas owners should reflect the new rate in forecasts for their Cyprus businesses. The rate applies to taxable profits, which may differ from the profit shown in the financial statements.
The effect on your budget
For illustration, €100,000 of taxable profits produces €15,000 of corporate income tax at the new standard rate, compared with €12,500 at the former rate. This simplified calculation excludes reliefs, credits and any special treatment. It is a useful starting point when updating a cash-flow forecast.
Cross border management deserves attention
The reform also broadens the incorporation-based corporate tax residence rule, subject to applicable double tax treaty provisions. A Cyprus company managed from abroad should therefore obtain a coordinated review of its position in both countries. A foreign address or overseas management team does not, by itself, settle the residence question.
Practical steps for overseas owners
Ask your tax adviser to update the 2026 computation and provisional tax position using current trading forecasts. Check that the adviser has complete information about foreign operations, financing and any tax paid overseas. Keep the company administrator informed of changes to the business or management arrangements so the corporate records and tax analysis remain consistent.
Contact Credora
Contact Credora Management Ltd to discuss the company administration and document coordination needed for your 2026 compliance review.
Sources
General information as at 12 October 2026. This article is not individual tax or legal advice. The treatment of a particular company or transaction depends on its circumstances.