Tax Return Filing Has Started in Cyprus: New Deadlines and Penalties

The Tax Department of the Republic of Cyprus has opened the electronic T.D.1 form for 2025. Tax returns in Cyprus are filed through the TAXISnet system. The return includes income, tax allowances, amounts withheld by the employer, and any tax liabilities that the taxpayer must settle independently.

For 2025, the income threshold of €19,500 still applies. However, the tax reform has changed the reporting requirements from the 2026 tax year: in 2027, tax residents of Cyprus aged between 25 and 70 inclusive will be required to file a tax return even if they have no income or their income is below the tax-free threshold.

When Tax Return Filing Started

The electronic tax return for 2025 in Cyprus became available in the TAXISnet system in June 2026. It covers income received from January 1 to December 31, 2025. For individuals, the tax year corresponds to the calendar year.

The original standard deadline was July 31, but it was subsequently extended by Council of Ministers Decree K.D.P. 260/2026. The T.D.1 return must be submitted no later than October 31, 2026. The final amount of tax calculated based on the completed return must also be paid by this date. Filing the tax return in Cyprus and settling the liability by October 31 allows taxpayers to avoid penalties and interest.

This deadline applies to individuals who are not required to prepare audited financial statements. Other categories of taxpayers may be subject to different forms and deadlines, so the T.D.1 rules should not automatically be applied to companies or self-employed individuals subject to mandatory audits.

Who Is Required to File a Tax Return

The filing requirement for 2025 is established by Decree K.D.P. 52/2025. A tax return in Cyprus is required from employees, pensioners, and self-employed individuals who are not required to prepare audited financial statements if their total gross annual income exceeded €19,500. The threshold applies before deductions and allowances are taken into account.

The calculation includes income that must be reported under Income Tax Law 118(I)/2002. This may include salary, pension income, self-employment profits, rental income, and other income specified by law.

For 2025, tax returns must be filed by:

• employees whose gross annual income exceeded €19,500;
• pensioners with income above this amount;
• self-employed individuals who are not required to prepare audited financial statements if they exceeded the applicable threshold;
• taxpayers who need to report additional sources of income or clarify their tax liabilities.

Individuals with gross income of up to €19,500 are generally exempt from mandatory filing for 2025, unless another specific requirement applies to them. The absence of tax payable does not always mean that there is no filing obligation: income may exceed the threshold while the final tax liability becomes zero after allowances and exemptions are applied.

From the 2026 tax year, the approach changes. Tax residents of the Republic of Cyprus who are aged between 25 and 70 inclusive as of December 31 of the relevant year will be required to submit a personal tax return regardless of their income level. The first such tax return in Cyprus will be filed in 2027 for income earned in 2026. Individuals outside this age range will remain subject to filing requirements where they have taxable income as prescribed by law.

How to File a Tax Return

Tax returns in Cyprus are submitted electronically through TAXISnet. To use the system, taxpayers must first register with the tax registry and obtain their login credentials. The government service specifically states that taxpayers must register with TAXISnet before filing.

Before completing the return, you should prepare:

• an employer certificate showing remuneration and tax withheld;
• information on pension and insurance contributions;
• details of bank interest, dividends, rental income, and foreign income;
• supporting documents for eligible expenses and allowances;
• documents confirming taxes previously paid or withheld.

In the system, select the T.D.1 form for 2025, check your personal information, and complete the income sections step by step. Some information may be entered automatically, but the taxpayer remains responsible for its accuracy.

After deductions and allowances have been entered, the system calculates the final result. Before submitting the return, check your tax identification number, amounts, employer details, and information concerning sources of income outside Cyprus. The completed tax return is submitted electronically, after which confirmation of receipt is saved.

If the calculation shows an additional amount payable, it must be paid by October 31, 2026 through an available electronic payment channel. Registering the return without settling the outstanding tax does not constitute full compliance with the tax obligation.

Liability for Late Filing

Failure to meet the deadline may result in administrative liability under the Assessment and Collection of Taxes Law No. 4/1978. Under Section 50A(a), a late income tax return in Cyprus for 2025 is subject to a €150 penalty.

If tax is not paid on time, interest and additional charges may apply to the outstanding amount. The Tax Department indicates a 5% surcharge and an additional 5% penalty for late payment, as well as interest for the period during which the payment remains outstanding.

Late filing may result in more than financial costs. Outstanding liabilities can affect a taxpayer’s tax profile and potentially complicate the issuance of tax compliance certificates, banking compliance reviews, or certain corporate procedures.

The fact that tax was previously withheld by an employer does not exempt an individual from filing if the mandatory filing criteria are met. Taxes in Cyprus are calculated based on the overall tax information, so additional income may change the final result even where PAYE has been regularly deducted.

How to Avoid Errors When Completing Your Tax Return

The most common issues involve incomplete reporting of foreign income, incorrect transfer of information from employer documents, and unjustified deductions. Errors can also arise when tax residency, domicile, and Non-Dom status are confused, as these concepts affect different tax obligations.

Before submitting the return, you should reconcile it with bank statements, salary certificates, pension documents, and previous tax filings. It is important to check that dividends, interest, or rental payments have not been incorrectly excluded from the calculation.

TAXISnet in Cyprus is a technical filing platform and does not determine the legal classification of every transaction. If a taxpayer has received income from several countries, claimed an exemption, changed tax residency, or owns a company, an analysis of the applicable double taxation agreement may be required.

Almanova Law can review the taxpayer’s income structure, determine the applicable filing obligations, and prepare documents for the correct reporting of foreign income. Professional assistance is particularly appropriate when tax reporting in Cyprus involves dividends, rental income, business activities, or a change in tax status.

There is still sufficient time before October 31, 2026 to reconcile the information and correct discrepancies before submission. When using TAXISnet in Cyprus, it is advisable not to leave the filing until the last day: a technical issue or an additional request for documents does not extend the statutory deadline.