Cyprus Tax Agency Issues Circular on List of Low-Tax Jurisdictions for 2026

The Cypriot Tax Department April 9 issued Circular No. 1/2026, on the list of low-tax jurisdictions for 2026. The circular includes that: 1) specified provisions on the non-deductibility of interest and royalty expenses, and the 5 percent withholding tax rate for dividend payments to associated companies, apply to resident taxpayers with permanent establishments (PE) in the listed low-tax jurisdictions, with the exception of Anguilla and Vanuatu; 2) the low-tax jurisdictions for 2026 include Anguilla, Vanuatu, Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, the Isle of Man, the Turks and Caicos Islands, the Bahamas, Bahrain, and Jersey; and 3) ...