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Cyprus: Notional interest deduction “reference rates� for 2025

NID reference rates as of December 31, 2024

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March 26, 2025

The Cyprus Tax Department (CTD) has announced the notional interest deduction (NID) “reference rates� for a number of countries as of December 31, 2024.

Background

The NID reference rate constitutes the interest rate of the 10-year government bond yield of the country in which the new equity is invested (as of December 31 of the previous tax year), for the purposes of granting tax allowance on new capital as per article 9B of the Income Tax Law N.118(I)/2002, as amended.

For countries not mentioned in the announcement, taxpayers may apply to the CTD to determine the appropriate NID reference rate.

Read a March 2025 report prepared by the 㣨Leyu member firm in Cyprus

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