Following the publication in the Government Gazette on 20 December 2023, Law N.157(I)/2023 introduced a significant reduction in the Special Defence Contribution (SDC) rate on interest income. Effective from 1 January 2024, the SDC rate on interest received or credited by individuals and companies resident in the Republic has been reduced from 30% to 17%.

This amendment is expected to have a positive impact on taxpayers by reducing the overall tax burden on interest income and aligning Cyprus’s tax regime with international standards, enhancing its attractiveness as a business and investment destination.

George Kaimakliotis & Co Ltd is here to provide tailored advice and assist you in navigating these changes to optimize your tax planning. Contact us to discuss how this reduction can benefit you or your business.