Cyprus: after the 2026 reform, interest bears 17% defence contribution, dividends 5%
The tax reform laws were published on December 31, 2025 and apply from January 1, 2026. For a resident domiciled in Cyprus the defence contribution on interest is 17%, on Cyprus and EU government bonds and exchange-traded bonds 3%, and on dividends 5% instead of 17%. A resident not domiciled in Cyprus pays no tax on interest and dividends. Rent is exempt from the contribution and subject only to income tax.
What this changes in the calculation
For a domiciled resident: deposit 17%, government bonds 3%, corporate bonds 17% (exchange-traded 3%); for a non-domiciled resident 0%.
- Source
- PwC Cyprus
- Status
- verified
- Published