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Challenges Faced by Cyprus Regarding Implementation of Minimum Tax Rate

September 3, 2026

Cyprus is facing challenges regarding legislation on the minimum tax rate of 15% for multinational companies. There are concerns that companies might relocate to countries with better tax regulations. The 2024 legislation imposes a national top-up tax on companies with a tax rate lower than the minimum. Brussels demands better compliance with EU requirements. A new bill is now being planned, which will take effect in 2026.