ACLA Auditors

Insights

Tax alerts & articles

Short updates on Cyprus tax and regulatory changes that may affect you.

Cyprus tax reform 2026 – Income tax summary

New tax-free threshold and tax bands from 1 January 2026, new allowances for children, rent or mortgage interest, energy upgrades and how to claim them.

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5% VAT on the purchase or construction of a new residence

The area (130 m² / 190 m²) and value (€350,000 / €475,000) thresholds for the reduced 5% VAT rate on a main and permanent residence.

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Transfer pricing – new thresholds for preparation of the Local Files

Who must prepare a Cyprus Local File, Master File and Summary Information Table under the transfer pricing rules in force since 1 January 2022.

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Tax facts for Cyprus individuals

Income tax bands, deductible expenses, the 20%, 50% and 100% employment income exemptions and the tax residency tests.

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Tax facts for Cyprus companies

Key corporate tax features of Cyprus companies: corporation tax, exemptions, withholding taxes, losses, IP and company tax residency.

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Tax diary 2025

Administrative penalties for late filing and late payment of tax, and how interest on late payments is applied.

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Transfer pricing – financial models in financing arrangements

How CAPM, the CUP method and Arbitrage Pricing Theory are used to support arm’s length pricing of intra-group loans.

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OSS – the EU VAT One-Stop-Shop

What the One-Stop-Shop is, when it applies to EU distance sales and which transactions cannot be reported through it.

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Registration of a Cyprus company

Key points to consider when incorporating a company in Cyprus and the government registrations required afterwards.

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Obligation to register with the Cyprus VAT authorities

When a business must register for VAT in Cyprus, the deadline to do so and the benefits of voluntary registration.

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Running a Cyprus company

Ongoing obligations with the Registrar of Companies: updating particulars, annual returns, certificates, beneficial owners, charges and mortgages.

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Termination of a Cyprus company

Strike off or liquidation? The requirements of each procedure and the key differences between them.

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Yellow slip in Cyprus

Registration certificates for EU/EEA nationals and their family members: MEU1, MEU2 and MEU3 explained.

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Choosing your accountant, auditor and tax advisor in Cyprus

The key factors to consider when choosing who will handle your business’s financial matters in Cyprus.

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