Cyprus Tax Reform Changes effective 1st January 2026 1.1 Updated Tax Brackets for individuals The tax-free threshold increases from €19,500 to €22,000. The revised tax brackets are: Chargeable Income Bracket Tax Rate Cumulative tax 0 - €22,000 First €22,000 0% – €22,000 - €32,000 Next €10,000 20% 2,000 €32,000 - €42,000 Next €10,000 25% 2,500 €42,000 - €72,000 Next €32,000 30% 9,000 Over €72,000 35% 1.2 Deductions – Income Thresholds The following deductions are available provided annual family income or single-parents family income does not exceed €100,000 - there are no children €100,000 - up to two (2) children as at 31 December of the tax year €150,000 - three (3) or four (4) children as at 31 December of the tax year €200,000 - five (5) or more children…

Cyprus Tax Reform Main changes effective 1st January 2026 On 22nd December, the Cyprus Parliament approved the most extensive tax reform in over two decades. The changes will be effective from 1st of January 2026 and will affect both individuals, companies and investors with a focus on fairness, transparency and international competitiveness. Personal Tax 1.1 Updated Tax Brackets The tax-free threshold increases from €19,500 to €22,000. The revised tax brackets are: Chargeable Income Bracket Tax Rate Cumulative tax 0 - €22,000 First €22,000 0% – €22,000 - €32,000 Next €10,000 20% 2,000 €32,000 - €42,000 Next €10,000 25% 2,500 €42,000 - €72,000 Next €32,000 30% 9,000 Over €72,000 35% 1.2 Deductions – Income Thresholds The following deductions are available provided annual family income or single-parents family income does not exceed €100,000 -…