AmCham Cyprus raises concerns over OECD Pillar Two tax impact

On September 8, 2026, the American Chamber of Commerce in Cyprus (AmCham Cyprus) issued a statement regarding the implementation of the OECD/G20 Pillar Two global tax framework. While the organization explicitly reaffirmed its support for the Republic of Cyprus's commitments to international tax transparency and cooperation with the OECD and the European Union, it emphasized the need for a balanced approach to ensure the country maintains its competitive edge.

AmCham Cyprus reported that it has received feedback from international investors, multinational corporations, and professional service providers expressing concern over how these tax changes may affect the island's investment climate. Specifically, the Chamber warned that some US-based multinational groups might reconsider planned expansions, shift future investments to other jurisdictions, or refrain from establishing new operations in Cyprus if the tax environment is perceived as detrimental to competitiveness.

The Chamber is calling on the state to conduct a comprehensive economic assessment before finalizing further policy decisions. The goal is to develop a strategy that complies with international mandates while protecting Cyprus's standing as an attractive destination for foreign capital, employment, and economic growth.