Cyprus Tax Department Issues List of Low-Tax Jurisdictions for Defensive Measures

The Cyprus Tax Department issued Circular 1/2026 on 9 April 2026, which establishes the list of jurisdictions considered to be low-tax jurisdictions for 2026. The list is important in relation to the new defensive measures on dividend, interest, and royalty payments to low-tax jurisdictions that generally apply from 1 January 2026, including the non-deductibility of interest and royalty payments to low-tax jurisdictions and the Special Defence Contribution (SDC) withholding of 5% on dividend…