Invest Cyprus has welcomed the recent announcements from the government regarding the country’s tax reform, highlighting its potential to further enhance the nation’s attractive tax system.

The reform, which the organisation describes as an “essential step in modernising and boosting the competitiveness of the country’s tax system”, is expected to foster a more “favourable, stable, and predictable business environment”.

“This, in turn, will make Cyprus an even more appealing investment destination,” the agency said.

The proposed changes introduce significant advantages to attract and retain both foreign and existing investors.

Notably, the reform maintains the non-dom tax status, provides incentives for stock options, and strengthens the IP box regime, which supports technology and innovation.

Other key elements include maintaining the 50 per cent tax incentive for highly skilled professionals relocating to Cyprus, improving tax residence rules, and reducing taxes for individuals.

Invest Cyprus also noted that the increase in the corporate tax rate to 15 per cent “will not affect the country’s competitiveness”, while changes to dividend taxation for residents address previous distortions in the system.

“With the extended tax reform, Cyprus’ tax system is modernised, keeping its competitive edge while boosting innovation, development, and job creation,” said Evgenios Evgeniou, president of Invest Cyprus.

He also stressed the importance of implementing the reforms quickly, stating that “prolonged periods of uncertainty regarding tax changes do not favour entrepreneurship and investment”.

“It is crucial that the final consultation period is short, and the reform is quickly passed into law,” he added.

Finally, the agency said that the reform “will reinforce Cyprus’s position as a modern and reliable investment destination, offering a stable and competitive tax environment”.