Cyprus brings major tax reform into force

Corporate tax rises from 12.5% to 15%, withholding tax on actual dividends falls from 17% to 5%, deemed dividend distributions and stamp laws are abolished

Parliament passed five of the government's six bills after amendments in the finance committee; publication in the official gazette followed at the turn of the year. Further parts are longer liability for company directors beyond their departure and a special contribution on bond interest of companies on the exchange's New Market cut to 3% (Cyprus Mail, 2 Jan 2026).