On 22 December 2025, the Cyprus parliament approved a major tax reform package. Some of the main changes include:
- The standard corporate tax rate is increased from 12.5% to 15%;
- The Deemed Dividend Distribution (DDD) rules are abolished in respect of profits earned from 1 January 2026;
- The Special Defence Contribution (SDC) on dividend distributions is reduced from 17% to 5%, while the SDC on rental income is abolished;
- The loss carry-forward period is extended from five years to seven years…