Tax in Cyprus: VAT, company tax, capital gains
19%
Cyprus charges 19% VAT (ΦΠΑ) on most goods and services. The rate is verified against European Commission – Your Europe (official EU portal) on 6 October 2026; the headline company tax rate is 15% (Cyprus Tax Department (Ministry of Finance) - Tax Reform 2026 income tax presentation).
VAT (ΦΠΑ) in Cyprus
Value-added: VAT (ΦΠΑ) is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 19%
- Local name
- VAT (ΦΠΑ) — Value Added Tax
- Type
- VAT
- Reduced rates
- 5%
- Filing
- Quarterly / Monthly / Annual
- Authority
- European Commission – Your Europe (official EU portal)
- Current rate since
- 13 January 2014
Company tax in Cyprus
The headline corporate income tax rate is 15%. In effect since 1 January 2026.
Corporate income tax raised from 12.5% to 15% from 1 January 2026 under the 2026 tax reform. Cyprus has enacted Pillar Two (IIR/UTPR and domestic top-up) per the same presentation (not detailed here). Special Defence Contribution on deemed/actual dividends is separate. Not covered by OECD Table II.1.
Capital gains tax in Cyprus
- Shares
- Exempt: profits from disposal of 'titles' (shares, bonds, fund units etc.) are exempt from personal income tax, and CGT does not apply to listed shares or to shares of companies not holding Cyprus immovable property (per PwC). Unlisted shares of companies holding Cyprus immovable property are subject to 20% CGT (see property).
- Property
- 20% Capital Gains Tax on gains from disposal of immovable property situated in Cyprus (and shares of unlisted companies owning such property), per PwC.
- Holding period
- None reported.
Ask your AI assistant about tax in Cyprus
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT (ΦΠΑ) rate in Cyprus, and what is the source?”
- “Add 19% VAT (ΦΠΑ) to a net amount of EUR 1,000.”
- “What is the company tax rate in Cyprus and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Cyprus, answered
Questions about tax in Cyprus
- What is the VAT (ΦΠΑ) rate in Cyprus?
- The standard VAT (ΦΠΑ) (Value Added Tax) rate in Cyprus is 19%, verified against European Commission – Your Europe (official EU portal) on 6 October 2026. A reduced rate of 5% applies to some categories. Value-added: VAT (ΦΠΑ) is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the company tax rate in Cyprus?
- The headline corporate income tax rate in Cyprus is 15%, verified against Cyprus Tax Department (Ministry of Finance) - Tax Reform 2026 income tax presentation on 6 October 2026. Corporate income tax raised from 12.5% to 15% from 1 January 2026 under the 2026 tax reform. Cyprus has enacted Pillar Two (IIR/UTPR and domestic top-up) per the same presentation (not detailed here). Special Defence Contribution on deemed/actual dividends is separate. Not covered by OECD Table II.1.
- How is capital gains tax charged in Cyprus?
- In Cyprus, the regime is mixed, as published by PwC Worldwide Tax Summaries (Cyprus - individual other taxes, reviewed 04 Aug 2026) (checked 6 October 2026, verification pending). On shares: Exempt: profits from disposal of 'titles' (shares, bonds, fund units etc.) are exempt from personal income tax, and CGT does not apply to listed shares or to shares of companies not holding Cyprus immovable property (per PwC). Unlisted shares of companies holding Cyprus immovable property are subject to 20% CGT (see property). Holding period: None reported.
- Can an AI assistant look up tax rates for Cyprus?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT (ΦΠΑ) rate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
- How current is the Cyprus tax information on this page?
- Every figure on this page carries the date it was last checked against its source; the most recent check is 6 October 2026. The consumption-tax rate comes from a maintained rate ledger cross-checked against European Commission – Your Europe (official EU portal), and each income, company and capital-gains figure has its own source and date. A figure that has not yet been verified against a linked official source says so instead of claiming a tick. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
Sources
- European Commission – Your Europe (official EU portal)
- Cyprus Tax Department (Ministry of Finance) - Tax Reform 2026 income tax presentation
- PwC Worldwide Tax Summaries (Cyprus - individual other taxes, reviewed 04 Aug 2026)
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Cyprus next to another country in the comparison tool, or read the tax facts.
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