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Cyprus corporate tax, worked out.

Enter your company's revenue and costs for the year. See the profit, the 15% corporate tax on it, and what the IP Box and past losses take off.

  • 2026 rate of 15%
  • IP Box and past losses
  • Free, no sign-up

Everything the company invoiced in the year, before VAT.

Costs spent to earn that revenue: salaries, rent, software, contractors. Leave out VAT you reclaim.

Losses from earlier years not yet used. They can be carried forward for 7 years.

Does the company earn from qualifying IP?

Software or patents the company developed. Under the IP Box, 80% of the profit from them is deducted.

Corporate tax for the year

Revenue
€150,000.00
Deductible costs
− €90,000.00
Profit
€60,000.00
Losses used
− €0.00
Taxable profit
€60,000.00
Corporate tax (15%)€9,000.00

An effective rate of 15% on the profit.

What the company keeps

Profit
€60,000.00
Corporate tax
− €9,000.00
Profit after tax€51,000.00

An estimate for tax years from 2026, not tax advice. It assumes every cost you enter is deductible and the company is Cyprus tax resident. It leaves out capital allowances, group relief, foreign tax credits, the special rules for losses on IP, and the tax on dividends you pay out of the profit.

How the numbers work.

The calculator works in four steps. The table lists every rate it uses.

  1. 01Profit is revenue less the costs the company spent to earn it.
  2. 02If part of the profit comes from qualifying IP, 80% of that part, after the nexus fraction, is deducted.
  3. 03Tax losses from earlier years are set against what's left, up to the full amount.
  4. 04Corporate tax is 15% of the taxable profit that remains.
Corporate tax
Rate from 202612.5% up to the 2025 tax year15%
IP Box deductionOf qualifying profit from patents and software80%
Effective rate on qualifying IP profitWith a nexus fraction of 100%3%
Losses carried forwardUnder the 2026 rules7 years
When the profit is paid out
Defence contribution on dividendsOnly if you're Cyprus tax resident and domiciled5%
GeSY on dividendsNon-doms pay it too2.65%

Rates checked continuously against the Tax Department and PwC Worldwide Tax Summaries.

Cyprus corporate tax, answered.

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15% from the 2026 tax year, up from 12.5%. It's charged on the company's taxable profit, not on its revenue. A company with €150,000 of revenue and €90,000 of costs pays €9,000 on €60,000 of profit.

It deducts 80% of the profit from qualifying intellectual property, so only the rest is taxed. At 15%, that's an effective 3% on the IP profit. Patents and copyrighted software the company developed qualify. Trademarks, brands and image rights don't.

The share of the IP's development the company paid for itself, and it scales the deduction. Your own R&D and work bought from unrelated contractors count in full. Buying the IP or outsourcing to a related company lowers it, though an uplift of up to 30% of the qualifying spend wins some back. Spend €200,000 in-house and €100,000 with a related company, and the fraction is €260,000 over €300,000, about 87%.

Yes. A tax loss can be set against later profits for up to 7 years under the 2026 rules, up from 5. How the longer period applies to losses from before 2026 isn't settled yet, so check older losses with your adviser.

In advance, as provisional tax: an estimate of the year's tax paid in two instalments, by 31 July and 31 December. Any balance is settled with the return. For the 2026 tax year the return and the balance are due by 31 January 2028.

Costs spent wholly and exclusively to earn the company's income: salaries, rent, software, contractors, professional fees. Equipment isn't deducted in one go. It's written off over several years through capital allowances. Some costs, such as entertainment, are only partly deductible.

As a dividend, it carries no income tax. If you're Cyprus tax resident and domiciled, you pay 5% defence contribution on dividends from 2026 profits. Everyone resident pays 2.65% GeSY. The salary vs dividends calculator works out what reaches you.

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