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16 April 2026

Cyprus Tax Authority publishes the list of low-tax jurisdictions for 2026

  • On 9 April 2026, the Cyprus Tax Department published the list of jurisdictions that are considered as low-tax jurisdictions for purposes of the relevant defensive tax rules.
  • The low-tax jurisdictions are determined based on specific criteria and the list will be updated on an annual basis.
  • Taxpayers should familiarize themselves with the list and consider the potential impact on their structures and the application of the defensive tax measures.
 

On 9 April 2026, the Cypriot Tax Department issued a circular listing the jurisdictions considered as low-tax jurisdictions for the purposes of applying the relevant defensive tax measures against low-tax jurisdictions (i.e., dividend withholding tax and nondeductibility of interest/royalties). These measures are applicable as of 1 January 2026. (For background, see EY Global Tax Alerts, Cyprus introduces defensive tax measures targeting low-tax and 'blacklisted' jurisdictions, dated 15 April 2025, Cyprus enacts major tax reform legislation, dated 8 January 2026, and Cyprus broadens documentation requirements for certain payments to nonresident companies in low-tax jurisdictions, dated 18 March 2026.)

The jurisdictions on the list (LTJ List) for 2026 are:

  1. Anguilla
  2. Vanuatu
  3. Bermuda
  4. British Virgin Islands
  5. Guernsey
  6. Cayman Islands
  7. Turks and Caicos Islands
  8. Isle of Man
  9. Bahamas
  10. Bahrain
  11. Jersey

The LTJ List is determined based on specific criteria (not made available by the Cyprus Tax Department) and will be reviewed and updated on an annual basis.

Taxpayers should familiarize themselves with the LTJ List and consider the potential impact on their structures and the application of the defensive tax measures.

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Contact Information

For additional information concerning this Alert, please contact:

EY Cyprus Advisory Services Limited, International Tax and Transaction Services, Nicosia

Ernst & Young LLP (United States), BEPS Tax Desk, New York

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2026-0878

 

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