Tax measures Vs ‘blacklisted’ & low tax jurisdictions (LTJ)

May 7th, 2025,

Cyprus House of Representatives has introduced defensive measures against ‘blacklisted’ (BLJ) and low-tax jurisdictions (LTJ).

The new legal measures are as follows:

1. Dividend payments to associated companies in LTJ will incur a 17% withholding tax (WHT), as of 01/01/2026.
2. Interest and royalty payments to associated companies in LTJ will not be deductible for corporate tax purposes, as of 01/01/2026.
3. The existing legal framework regarding withholding tax in EU member states on payments to companies in BLJ is being further enforced.