Italy vs Cyprus
Corporate Tax Comparison
Time of Update: Italy: 4/05/2026 / Cyprus: 4/05/2026
Compare Italy and Cyprus corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Italy vs Cyprus Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Italy
Cyprus
General CIT Rate:
24
General CIT Rate:
12.5
CIT Return Due Date:
By the end of the 9th month after the end of the tax year.
CIT Return Due Date:
Tax due on March 31 of the second year after the calendar year.
CIT Payment Due Date:
The last day of the sixth month after the end of the tax year.
CIT Payment Due Date:
The relevant tax is due on August 1 of the year following the calendar year.
CIT Estimated Payment Due Date:
Advance payment: 1) Pay 40% on the last day of the sixth month after the end of the tax year, 2) Pay 60% at the end of the eleventh month after the end of the tax year.
CIT Estimated Payment Due Date:
Payment in installments of equal amounts on July 31 and December 31 of the relevant tax/calendar year.
Withholding Tax (WHT)
Italy
Cyprus
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/17/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
26/26/30
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Italy
Cyprus
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate. For financial investments, as long as they meet the conditions stipulated by law, they can be eligible for a 95% exemption under the PEX system.
General Capital Gain Tax Rate:
20
Effective Tax Rate (ETR)
Italy
Cyprus
Composite Effective Average Tax Rate:
21.18%
Composite Effective Average Tax Rate:
11.4%
Composite Effective Marginal Tax Rate:
-22.74%
Composite Effective Marginal Tax Rate:
5.92%
