Who Is Required to File a Tax Return in Cyprus: Changes Effective from 2026

Cyprus tax rules are undergoing significant changes. Below is an overview of who is required to file a tax return, depending on the relevant tax year.

Tax Year 2025

Under the current legislation and the Decree of the Council of Ministers, individuals are required to file a tax return if their gross income exceeds €19,500.

Starting from the 2026 Tax Year

From 2026 onwards, the scope of individuals required to file a tax return will be significantly expanded. A tax return must be submitted by any person who meets at least one of the following criteria.

1. Receives gross income falling under Article 5 of the Income Tax Law, including:

• income from business activities or employment;

• dividends and interest;

• pension income;

• income received pursuant to a court decision, will, or contract;

• rental income;

• income from intellectual property and patents;

• income from real estate;

• income from the sale of crypto-assets;

• income related to the breach or termination of a contract.

or

2. Is a Cyprus tax resident and, as at 31 December of the relevant tax year:

• is aged between 25 and 70 years, inclusive;

• is required to file a tax return regardless of the amount of income received.

Important

The Council of Ministers reserves the right to exempt certain categories of individuals from the obligation to file a tax return by issuing a special Decree.

Recommendation

The Main Partner Trust team recommends determining your tax residency status in advance and preparing for the new requirements in order to avoid penalties and potential misunderstandings. More detailed information on the tax reform will be available during our webinar.

Note: The content of this article is relevant at the time of its first publication. It is intended to provide general information on the topic and does not constitute legal advice. We recommend seeking professional advice regarding your specific matter before taking action based on the information presented. For more information or consultation, please contact our tax experts by email at contact@mainpartnertrust.com

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