The Cyprus Tax Reform

On 22 December 2025, and following a long public consultation exercise, the House of Representatives voted into law, the provisions constituting the Cyprus Tax Reform. The provisions span over a set of six amending tax laws that have been published in the Official Gazette on 31 December 2025. The amending laws are as follows: 

1. The Income Tax Law of 2002 (118(I)/2002), the “ITL”;
2. The Special Contribution for the Defence Law of 2002 (117(I)/2002), the “SDCL”;
3. The Capital Gains Tax Law of 1980 (52/1980), the “CGTL”;
4. The Assessment and Collection of Taxes Law of 1978 (4/1978), the “ACTL”;
5. The Collection of Taxes Law of 1962, the “CTL”;
6. The Stamp Duty Law of 1963, the “SDL”.

The new framework is applicable for tax years commencing 1 January 2026 and onwards.

Please find below a brochure outlining the new provisions. 

Should you like to further discuss the content and potential impact of the above, please contact one of our trusted advisors from the Tax Department at KPMG in Cyprus.