Corporate Tax Calculator

How much is corporate tax in Cyprus?

From 2026, Cyprus levies a flat corporate income tax of 15% on a company's taxable profits. This applies to resident companies on their worldwide income and to the Cyprus-source profits of non-resident companies. The rate is a single flat percentage, so there are no progressive bands to model. For a full breakdown of allowances and adjustments, see our Cyprus corporate tax guide for 2026.

Who qualifies for the IP Box regime?

Companies earning income from qualifying intellectual property, such as patented inventions and copyrighted software, may benefit from the Cyprus IP Box regime. By exempting a large share of qualifying profit, the regime can bring the effective tax rate on that income down to as low as around 3%. Eligibility depends on the nature of the asset and the research and development activity behind it. Our Cyprus IP Box regime overview explains the qualifying criteria in more detail.

How is Cyprus corporate tax calculated?

Taxable profit is your accounting profit adjusted for non-deductible expenses and available allowances, then taxed at the flat 15% CIT rate. Where profits fall under the IP Box regime, the qualifying portion is taxed at the much lower effective rate before the standard rate applies to the remainder. Because the rules interact with residency, substance and deductions, most companies plan the structure before incorporating. If you are still choosing where to set up, our guide to registering a company in Cyprus walks through the process.

Frequently asked questions