How are dividends taxed in Cyprus from 2026?
Short answer
Cyprus tax residents who are not domiciled in Cyprus pay no Special Defence Contribution on dividends. Those who are domiciled pay 5% on dividends from 2026, or 17% on dividends paid out of profits made up to 2025 within six years.
The rule that treated part of a company's kept profits as paid out (deemed dividend distribution) now covers only the profits of 2024 and 2025; profits from 2026 onwards are outside it.
Everyone, domiciled or not, pays the national health contribution of 2.65% on dividends, up to €180,000 of income a year. The company itself pays corporate tax at 15% on its profits from 2026.
Sources
Information, not advice. This answer describes the published position as it stands on 12 October 2026. Requirements, fees and processing times set by the authorities change from time to time; the current position is confirmed before any work starts.
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