Cyprus Introduces Defensive Tax Measures Against Low-Tax Jurisdictions

Source: PwC Cyprus

In response to global minimum tax standards (OECD Pillar 2), Cyprus has announced an upcoming tax reform set to take effect in January 2026. The most significant change will be a corporate tax increase from 12.5% to 15%. However, core advantages like the IP Box (2.5% on qualifying income) and the non-dom regime will remain untouched. For tech-driven companies, this still makes Cyprus highly competitive in the EU.