January 9th, 2024

On December 6th, 2023, the SDC rate on passive interest income earned by Cypriot tax resident individuals and companies was reduced from 30% to 17%, through an amendment to the Special Defence Contribution (‘SDC’) Law by the Cyprus Parliament.

The amendment, published in the official Cyprus Government Gazette, applies as of January 1st, 2024.

With this amendment passive interest income is taxed under SDC at the same 17% rate as dividends.

This amendment will further enhance the position and reputation of Cyprus as a financial centre.