Cyprus: Low-tax jurisdictions for tax year 2026
Circular 1/2026
The Cyprus tax department on April 9, 2026, published Circular 1/2026, providing the list of “low-tax jurisdictions” for tax year 2026:
- Anguilla
- Bahamas
- Bahrain
- Bermuda
- British Virgin Islands
- Cayman Islands
- Guernsey
- Isle of Man
- Jersey
- Turks and Caicos Islands
- Vanuatu
Interest and royalty payments to in-scope recipients that are tax residents and/or organized and/or established in low-tax jurisdictions will not be allowed as deductions from the payer’s taxable income, and dividends paid to in-scope recipients will be subject to a withholding tax of 5%.
Read an April 2026 report prepared by the KPMG member firm in Cyprus