Corporate Tax in Famagusta
Cyprus corporate income tax is charged at 15% on worldwide income of Cyprus tax-resident companies, following the 1 January 2026 increase from the historical 12.5% rate to align with OECD Pillar Two global minimum tax rules. The effective tax burden is often significantly lower via participation exemption, IP Box, Notional Interest Deduction, and other specialist reliefs. Compliance combines the annual TD4 return, provisional tax payments, and correct claim of available reliefs. Every Cyprus accountant handles corporate tax as a core service.
The Cyprus corporate tax regime
Cyprus imposes corporate income tax at 15% on the worldwide income of Cyprus tax-resident companies (residency based on management and control in Cyprus). Non-resident companies are taxed only on Cyprus-source income. The 15% rate applied from 1 January 2026, replacing the historical 12.5% rate that Cyprus had maintained since 2003, in line with the OECD Pillar Two global minimum tax reform. Certain qualifying income streams enjoy full or partial exemption, notably foreign dividends and capital gains from qualifying participations, and IP Box qualifying income (effective rate approximately 3%).
Because virtually every Cyprus accountant handles corporate tax as core work, choosing based on general "corporate tax" services is less useful than assessing specific specialist needs — see our international tax planning and tax compliance pages.
Key reliefs and exemptions
Participation exemption: dividends from foreign subsidiaries are exempt from Cyprus corporate tax provided the underlying activity is not passive and foreign tax is not "significantly lower" than Cyprus. Capital gains: generally not taxed except on Cyprus real estate (20%). NID: notional interest deduction on new equity (~6-7% currently). IP Box: 80% deduction on qualifying IP income (~3% effective rate from 2026; was 2.5% pre-2026). Group loss relief: losses can be surrendered between Cyprus group companies (75% common shareholding).
Firms specialising in Corporate Tax
1 firmsMulti-practitioner firms with documented practice in Corporate Tax, ranked by claim status, listing completeness, and client rating.
A&C Christofi Ltd is a Cyprus-based firm of Certified Chartered Accountants and Registered Auditors, providing accounting, audit, tax, payroll, business advisory, and other professional services to SMEs and individuals. With over 17 years of experience, they emphasize human-centered advisory and technology-enabled efficiency.
Independent specialists
15Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
Certified Public Accountant · Famagusta
🎯 Firms are ranked by claim status, listing completeness, and client ratings. Firms that have claimed their listing and provided detailed information rank higher. Claim your firm's listing →
Frequently asked questions
Is Cyprus corporate tax still 12.5%?
No — Cyprus corporate income tax rose from 12.5% to 15% with effect from 1 January 2026, aligning Cyprus with OECD Pillar Two global minimum tax rules. The 12.5% rate had applied since 2003. Effective rates can still be significantly lower through participation exemption, IP Box (~3% effective), NID, and other reliefs. Complex structures should be planned with specialist tax advice.
Do all accountants handle corporate tax?
Yes, corporate income tax return preparation is a standard service across ICPAC-registered Cyprus firms. For complex situations (international structures, IP Box, TP), specialist tax advice from firms with dedicated international tax teams is more appropriate.