Invest Cyprus: Supporting Tax Reform for a competitive and modern business environment

13:37 - 28 February 2025

Economy Reporter

Invest Cyprus has welcomed the tax reform announced on Wednesday, February 26, 2025, by the President of the Republic of Cyprus, Nikos Christodoulides, as a significant and necessary step towards modernising and enhancing the competitiveness of the country’s tax system.

The proposed changes create a more favourable, stable, and predictable business environment, further positioning Cyprus as an attractive investment destination, an Invest Cyprus announcement notes.

The reform introduces key advantages for attracting and retaining both foreign and existing investors in Cyprus, further improving the country’s appealing tax framework, including:

Retention of the Non-Dom regime.
Incentives for stock options.
An enhanced IP Box regime, supporting technology and innovation.
Retention of the 50% tax incentive for specialised professionals relocating to Cyprus.
Strengthening of tax residency rules.
Reduction of personal income tax.

The increase in corporate tax to 15% maintains Cyprus’ competitiveness, while the reform in dividend taxation for Cyprus residents addresses previous distortions.

Commenting on the reform, the Chairman of Invest Cyprus, Evgenios Evgeniou, stated, "With this forward-looking tax reform, Cyprus’ tax system is modernised while maintaining its competitive edge, fostering innovation, growth, and job creation. At the same time, Mr. Evgeniou emphasised the importance of swift implementation, highlighting that: "Prolonged uncertainty regarding tax changes does not favour business and investment. Invest Cyprus considers it crucial to have a short final consultation period and the swift enactment of the reform into law."

"With this reform, Cyprus strengthens its position as a modern and reliable investment destination, offering a stable and competitive tax environment," Invest Cyprus' announcement concluded.

Invest Cyprus: Supporting Tax Reform for a competitive and modern business environment

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