Cyprus tax reform package 2026
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
Main Amendments – Summary
ITL
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SDCL
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CGTL
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ACTL
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CTL
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SDL
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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