Cyprus as a Corporate Hub in the Post-Pillar Two Era

Patrikios Legal is pleased to share a new article by its Partner and Head of Corporate and Private Client, Stella Strati, titled “Cyprus as a Corporate Hub in the Post-Pillar Two Era”.

The article explores the recent Cyprus tax reform and assesses the country’s position following the implementation of the OECD’s global minimum tax framework.

Key Highlights

🔹 Implementation of Pillar Two
Cyprus has introduced a 15% corporate tax rate, effective 1 January 2026, aligning with international standards while remaining competitive within the European landscape.

🔹 Enhanced Tax Measures
The reform includes a reduction of Special Defence Contribution on dividends, wider personal income tax bands, increased tax-free thresholds, and the introduction of a clear framework for the taxation of crypto assets.

🔹 Continued Attractiveness of Cyprus
Cyprus retains its well-established advantages, including:

  • The Non-Dom regime
  • The IP tax regime
  • No capital gains tax on the sale of securities
  • No withholding taxes on dividends, interest and royalties

🔹 Incentives for Individuals and Businesses
The jurisdiction continues to offer attractive incentives for relocation, including income tax exemptions for high-earning individuals and the absence of inheritance, wealth and gift taxes.

Conclusion

Despite the introduction of Pillar Two, Cyprus continues to offer a balanced and competitive environment, combining compliance with global tax standards and a wide range of incentives, reinforcing its position as a leading international business hub.

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Our legal team is available to assist with any queries or to provide tailored advice on how these developments may impact your business or investment structures.

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