Welcome to the 2025 Cyprus Tax Facts
We are delighted to introduce this year’s Cyprus Tax Facts. With the pace of new tax legislation accelerating, there's an increased risk that taxpayers might be caught unprepared, making a current, detailed guide on Cyprus' Tax and Legal code invaluable.
Changes in 2024 included significant updates such as the implementation of transfer pricing rules aligned with OECD guidelines, the introduction of Pillar Two under BEPS 2.0 setting a global minimum tax rate, new green taxes to support environmental sustainability, and adjustments to social insurance contributions. We've also seen the expansion of digitalization efforts with the "Tax for All" portal, alongside new measures to combat money laundering through tightened controls on large cash transactions.
Looking beyond 2024, we anticipate further reforms, including potential expansions in green taxation like a carbon tax on energy products and a tourist accommodation fee, more clarity on the rollout of BEPS 2.0 implementations, and expected changes as a result of the upcoming tax reform.
This Tax Guide represents hundreds of hours of tax research, all done with our clients in mind. However, it should not be regarded as offering a complete explanation of the tax matters referred to and is subject to changes in the law and other applicable rules. Readers are advised to consult our EY professionals for further information. We encourage you to subscribe to our monthly TaxLegi Newsletter and Alerts for timely updates on key developments.