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Cyprus: Low-tax jurisdictions for tax year 2026

Circular 1/2026

April 16, 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

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