<\/p>\n
The Cyprus Tax Department has published the yields on 10-year government bonds as of December 31, 2025. These rates are used for calculating the Notional Interest Deduction (NID) for the 2026 tax year.<\/p>\n
The publication of these rates is particularly relevant for companies financed through new equity, as it directly affects the amount of available tax deduction and, consequently, the effective tax burden in Cyprus.<\/p>\n
The Notional Interest Deduction (NID) is a tax incentive mechanism that allows Cyprus companies to claim a notional interest deduction on new equity introduced into the business. It is designed to align the tax treatment of equity financing with that of debt financing.<\/p>\n
The calculation is based on the following formula:<\/p>\n
10-year government bond yield of the country where the capital is employed + 5%<\/strong><\/p>\n The calculation relies on the official rates published by the Cyprus Tax Department at the end of the preceding year.<\/p>\n For companies raising capital through equity contributions, the applicable rates play a key role in tax planning.<\/p>\n The NID directly impacts:<\/p>\n the amount of tax deduction available;<\/p>\n<\/li>\n the effective tax rate;<\/p>\n<\/li>\n the overall financing structure of the company.<\/p>\n<\/li>\n<\/ul>\n Timely consideration of the updated rates allows businesses to optimize their tax position and improve financial efficiency.<\/p>\n<\/div>\n<\/div>\n <\/p>\n 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\u00a0<\/span><\/i>contact@mainpartnertrust.com<\/span><\/i><\/a><\/p>\n See more at\u00a0<\/em>Instagram<\/em><\/a>,\u00a0<\/em>https:\/\/t.me\/mainpartnertrust<\/em><\/a>\u00a0\u00a0<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n <\/p>","protected":false},"excerpt":{"rendered":" Cyprus Publishes 10-Year Government Bond Yields for NID Calculation for the 2026 Tax Year The Cyprus Tax Department has published the yields on 10-year government bonds as of December 31, 2025. These rates are used for calculating the Notional Interest Deduction (NID) for the 2026 tax year. The publication of these rates is particularly relevant […]<\/p>\n","protected":false},"author":3,"featured_media":2308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,4],"tags":[],"class_list":["post-2307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-media","category-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tPractical Implications for Businesses<\/span><\/h2>\n
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