US business group calls for review of new tax law’s impact on Cyprus investors

Economy taxTop Newsus US business group calls for review of new tax law’s impact on Cyprus investors Finance Ministry Of Cyprus Relevant News US business group calls for review of new tax law’s impact on Cyprus investors 8 September 2026 Activists to rally against Israeli President Herzog’s Nicosia visit on Thursday 8 September 2026 Delivery rider attacked and robbed in Limassol 8 September 2026 newsroom 8 September 2026 FacebookXWhatsAppEmailPrintViber The American Chamber of Commerce in Cyprus (AmCham Cyprus) has called for an independent assessment of how new minimum tax rules could affect investment in the country, days after Finance Minister Makis Keravnos said there was no evidence multinational companies are leaving Cyprus because of them. The rules, known as Pillar Two, are a global agreement between the OECD, the G20 and the EU requiring very large multinational and domestic companies to pay a minimum effective tax rate of 15%. Keravnos said they apply only to groups with annual revenue above €750 million, putting the number of such companies operating in Cyprus at around 2,000. “Nor does this mean these companies will pay an additional 15% tax,” he said. “It means that, where the effective tax rate, which in Cyprus is 12.5%, falls short of 15%, the difference is paid, up to a minimum level of 15%.” AmCham Cyprus said it fully supports Cyprus’ commitment to international tax cooperation and its obligations under the OECD and EU frameworks, stressing that its recommendations should not be read as opposition to the rules. According to the Chamber, international investors, multinational enterprises, business leaders and professional service providers have raised concerns about how the changes could affect future investment decisions — including that some U.S.-headquartered multinational groups may reconsider expansion plans, choose alternative jurisdictions, or decide against establishing operations in Cyprus if the country’s competitive position is seen to weaken relative to other business centres. The Chamber put U.S. foreign direct investment stock in Cyprus at approximately $14.9 billion, according to the latest available figures, with U.S.-owned enterprises supporting jobs across technology, professional services, finance, energy, shipping, research and development, and digital industries. It said U.S. companies operating in Cyprus generate annual tax revenues of approximately €140 million, much of it from businesses using Cyprus to support their international operations. AmCham called for an independent economic assessment covering the number of multinational groups potentially affected, their contribution to employment and government revenues, the impact on investment decisions, how competing jurisdictions treat similar businesses, and the wider implications for Cyprus’ long-term competitiveness. It set out five recommendations: an independent economic impact assessment; a structured stakeholder consultation process; maximum flexibility within international frameworks; protecting Cyprus’ position as a regional business hub; and a broader U.S.-Cyprus investment competitiveness strategy. The only change Cyprus has actually seen, Keravnos said, is a rise in foreign company registrations. “The government has no information about any possible departure of companies to set up in other EU member states, nor are there any objective reasons that would justify such a development,” he said, adding: “Cyprus will continue to have a favourable tax environment, with favourable investment incentives, and the significant advantages that stem from its strategic position will continue to exist. There is no concern at all.” He said the measure was not a decision Cyprus took on its own, but part of the international agreement on a global minimum tax, since written into EU law, which Cyprus is obliged to follow, and that concerns over the law had been raised by isolated voices which, “if they are not serving personal interests, stem from certain obsessions.” AmCham Cyprus said it remains committed to working with the government, parliament and other stakeholders to find solutions that preserve Cyprus’ international credibility while maintaining its ability to attract investment and remain competitive. Read more: Cyprus risks capital flight to EU neighbours over minimum corporate tax rules Subscribe to our Newsletter Latest News Activists to rally against Israeli President Herzog’s Nicosia visit on Thursday Delivery rider attacked and robbed in Limassol Japan Embassy to screen Cannes-selected film Kokuho in Nicosia Marlon Jackson brings The Jacksons to Limassol in October The limousine and the supposedly classified letter The fenced-in school playground Five photographers to reimagine Cyprus for RE-VISIONS residency Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.