Cyprus Tax Calculator 2026

How Cyprus income tax works in 2026

Cyprus uses progressive income tax brackets. The first €22,000 you earn each year is completely tax-free, raised from €19,500 in the 2026 reform. Income between €22,001 and €32,000 is taxed at 20%, then 25% up to €42,000, then 30% up to €72,000, and 35% on anything above that. Most Cyprus tax residents on a typical professional salary fall into the 20% or 25% band.

See also: If most of your income is from dividends or interest, non-dom status removes Special Defence Contribution entirely. If you run a business, the 15% Cyprus corporate tax via a Cyprus company may be more efficient than salary income.

Cyprus 2026 income tax brackets

These are the progressive income tax bands that apply to all Cyprus tax residents from 1 January 2026, after the December 2025 reform. The tax-free threshold rose from €19,500 to €22,000 and the top-bracket entry point moved from €60,000 to €72,000.

Social Insurance and GHS contributions

Two payroll contributions come off your gross before income tax: Social Insurance and the General Healthcare System (GHS, also called GeSY). Social Insurance is 8.8% for employees and another 8.8% for the employer, capped at insurable earnings of €68,904 per year for 2026. GHS is 2.65% on total income up to a €180,000 cap, and you continue to pay it on dividends, interest, and rents even if you are non-dom.

See also: Holding a Cyprus work permit or EU Blue Card can also unlock the 50% expat tax exemption for salaries above €55,000.

Cyprus 2026 social contribution rates

In addition to income tax, Cyprus residents pay Social Insurance and General Healthcare System (GHS, also called GeSY) contributions. Both have annual ceilings, so the marginal rate effectively drops above the cap.

Expat tax relief: 20% or 50%, depending on your salary

Cyprus offers two mutually exclusive expat reliefs that you toggle in the calculator. If your annual salary exceeds €55,000 and you were not a Cyprus tax resident for the 15 consecutive years before your first qualifying employment, half of your employment income is exempt from income tax for 17 years (Article 8(23A), eligible if your first qualifying Cyprus employment commenced on or after 1 January 2022). For employees under €55,000, the alternative is 20% of remuneration as exempt, capped at €8,550 per year, for 7 years from the tax year following commencement (Article 8(21), eligible if your first Cyprus employment commenced on or after 26 July 2022, you were employed outside Cyprus by a non-resident employer for at least 3 consecutive years prior, and you were not a Cyprus tax resident in those years). Both reliefs are portable: once you qualify, the exemption continues if you change employer during the 7- or 17-year window.

See also: For the full eligibility checklist and the application process, read our Cyprus work permit and EU Blue Card guide.

Cyprus Non-Dom: 0% on dividends and interest

Non-dom status removes the Special Defence Contribution on dividends (5% on profits earned from 1 January 2026 onward, 17% on pre-2026 retained earnings until 31 December 2031) and interest (17%) entirely for 17 years from the year you become a Cyprus tax resident. The 2026 reform also abolished SDC on rental income for everyone, dom or non-dom. GHS at 2.65% still applies to all passive income. To qualify you must not be Cyprus-domiciled and must have been a Cyprus tax resident in fewer than 17 of the last 20 years. The same 2026 reform allows non-doms with a foreign domicile of origin to extend the 17-year window by two further 5-year periods, paying €250,000 per period (subject to Ministry of Finance implementation guidance), for a maximum of 27 years total.

See also: Read the complete Cyprus non-dom registration guide for the full process, eligibility checklist, and the 17-year clock.

What changed in the 2026 Cyprus tax reform

The reform raised the tax-free threshold from €19,500 to €22,000, moved the top-bracket entry point from €60,000 to €72,000, abolished SDC on rental income, cut SDC on dividends from new profits to 5%, and added three NEW income-tested deductions: housing (€2,000 per spouse for rent or mortgage interest on the primary residence), EV or energy upgrades (€1,000), and family allowances of €1,000 to €1,500 per child. All three share the same income caps: €40,000 for single individuals, €90,000 for childless couples, €100,000 for couples with one or two children, €150,000 for three or four, €200,000 for five or more. Above the cap, the deductions are denied entirely. The 60-day residency rule was also loosened: you no longer need to prove you are not tax-resident anywhere else.

See also: The 2026 reform also dropped Cyprus crypto tax to a flat 8%, one of the lowest rates in the EU. Investment-based Cyprus residency by investment now starts at €300,000.