How much income tax will I pay on my salary in Cyprus?
From 2026 the first €22,000 of your taxable income is tax-free, and the rest is taxed in four bands from 20% to 35%. Social insurance and GESY come off your gross salary. They also reduce the income the tax is worked out on, by at most a fifth of your taxable income as it stands before these and the new personal deductions come off.
Pick one: the Tax Department allows one of the three current exemptions in a tax year. The calculator applies an exemption you have; it does not check whether you qualify. Who qualifies: the Tax Department's page on the 20%, the 50% and the 25% (in Greek). In English: new-resident exemptions.
The 50% exemption applies only in a year your salary is over €55,000 — in the year you start, over your first twelve months.
The 25% exemption applies only in a year your salary is over €30,000.
The first €22,000 of taxable income a year is taxed at 0%.
The top rate, on taxable income above €72,000.
Social insurance off your gross salary, on earnings up to €5,742 a month. GESY adds 2.65%, on up to €180,000 a year.
Social Insurance Services, rates · Social Insurance Services, 2026 ceiling · GESY Law
- Gross salary€50,000
- Social insurance€4,400
- GESY€1,325
- Exemption€0
- Deducted before taxSocial insurance and GESY, up to a fifth of your taxable income before they come off€5,725
- Taxable income€44,275
- Income tax€5,183
Each line is the exact amount rounded to the whole euro, so the lines can be a euro apart from adding up.
Bands, rates, ceilings and the exemptions' rates, caps and thresholds from the Income Tax Law as amended for 2026, the Social Insurance Services and the General Healthcare System Law.
What are the income tax bands in 2026?
Five bands, on taxable income — your salary after any exemption and after deductions such as social insurance and GESY. Each rate applies only to the slice of income inside its band.
Up from €19,500 in 2025.
Income Tax (Amendment) (No. 4) Law 244(I)/2025, Official Gazette No. 5070 · Income Tax Law 118(I)/2002, consolidated text (CyLaw)
| Taxable income a year | Rate, drawn to scale | Rate |
|---|---|---|
| Up to €22,000 | 0% | |
| €22,001 – €32,000 | 20% | |
| €32,001 – €42,000 | 25% | |
| €42,001 – €72,000 | 30% | |
| Over €72,000 | 35% |
Income Tax (Amendment) (No. 4) Law 244(I)/2025, Official Gazette No. 5070
What does that mean on a real salary?
Here is a €50,000 salary with no exemption, paid in twelve equal monthly salaries, from gross pay to what lands in the account.
- Gross salary€50,000
- Social insurance€4,400
- GESY€1,325
- Deducted before taxSocial insurance and GESY€5,725
- Taxable income€44,275
Social insurance and GESY are taken first; what is left after them is what the bands see. Each line is the exact amount rounded to the whole euro, so the lines can be a euro apart from adding up.
| Gross | Income tax | Take-home |
|---|---|---|
| €25,000 | €28 | €22,110 |
| €40,000 | €2,855 | €32,565 |
| €60,000 | €7,839 | €45,291 |
| €100,000 | €20,250 | €71,036 |
- First €22,000 at 0%€0
- Next €10,000 at 20%€22,001 to €32,000€2,000
- Next €10,000 at 25%€32,001 to €42,000€2,500
- Last €2,275 at 30%€42,001 to €44,275€683
- Income tax€5,183
- Take-homeGross salary less social insurance, GESY and income tax€39,093
Worked out from the 2026 bands and the social insurance and GESY rates above.
What can bring the tax down?
From 2026 three new personal deductions come off your taxable income. Each comes with conditions: the ones all three share under “To claim them” below, and each one's own in its card. They come on top of the deduction for your contributions.
Children
€1,250 for the second and €1,500 for the third and each further child, counting the children who are dependent on 31 December. Each parent claims it; in a single-parent family, or where one parent has full custody, it is doubled.
Rent or home-loan interest
For your main home in Cyprus: rent, or interest on a loan to buy or build it — one limit for both, and never more than you actually paid; a couple's two deductions together cannot exceed what the couple actually paid. Any public grant towards the rent or interest comes off first. For interest, you or your spouse or partner must own the home, and the loan must be in one of your names and up to date with its repayments. Rent counts only if paid by bank transfer, card or another recognised electronic method.
Energy upgrades at home
For your main home in Cyprus, if you or your spouse or partner own it: energy-saving work such as insulation, replacing windows and doors, solar panels and home batteries. Charging points for an electric vehicle count too, and for those you need not own the home. Any public grant for the work comes off the spending first. A couple's two deductions together cannot exceed what they actually spent. Spending above the limit carries forward for up to four more years — but only if you are within the income limit in the year you spend it, and again in each year you use it.
To claim them
- You are tax resident in Cyprus. Are you? → Tax residency
- Your gross income is within its limit. If you live without a spouse, civil partner or dependent children, that is your own income; otherwise it is your family's — including a partner you live with and have a child with. It is measured before any exemption or deduction.
- Your tax return is filed on time. If you are married, in a civil partnership, or live with a partner you have a child with: both returns, and you both agree to share your tax data with each other.
To have them taken off your pay during the year, list them on form T.F.59 for your employer.
Income limits
A married couple or civil partners with no children or up to two, or parents living together with one or two. Also a single parent with one or two children.
A family with three or four children.
A family with five or more children.
A single person. The Tax Department also counts someone sharing a home with a flatmate, or with a partner they are neither married to nor in a civil partnership with and have no child with, as single.
Your contributions are deducted already
Social insurance and GESY come off your income before tax. So do life insurance premiums, and contributions to a pension or provident fund in Cyprus or another EU state that the Tax Commissioner has approved, each within its own limit. All of them together come off only up to a fifth of your taxable income as it stands before these deductions, and the new personal deductions above, are taken off. The calculator deducts social insurance and GESY, within that limit. It does not deduct life insurance premiums or pension and provident fund contributions: if you pay them, your tax can be lower than it shows.
Moving to Cyprus for work: what an exemption does to your tax
Three exemptions take part of an employee's salary out of income tax for people who come to work in Cyprus from abroad. The Tax Department allows one of them in a tax year. The 25% is only for people returning to Cyprus after at least seven years away. This page shows what each one does to your tax, not who qualifies. The Tax Department sets out the conditions on its own page for each, in Greek: 20% · 50% · 25%. In English: new-resident exemptions. If you know which one is yours, pick it in the calculator at the top to see what it does to your own take-home pay.
| Exemption | 20%First employment | 50%First employment | 25%Talent repatriation |
|---|---|---|---|
| Share of salary exempt | 20% | 50% | 25% |
| Most exempt in a year | €8,550 | No limit | €25,000 |
| Salary must be over | No minimum | €55,000 | €30,000 |
| First year it applies | The year after you start | The year you start | The year you start |
One euro more and half the salary is exempt. The test is applied each year, so a later year at or below it gets no exemption. In the year you start, what counts is your pay over your first twelve months. And no year counts at all unless you met the test in your first or your second twelve months after your first job in Cyprus began. How that is tested → New-resident exemptions
What changed from 2025?
Every band edge moved up for 2026; the rates stayed the same.
| Band | 2025 | 2026 |
|---|---|---|
| 0% up to | €19,500 | €22,000 |
| 20% up to | €28,000 | €32,000 |
| 25% up to | €36,300 | €42,000 |
| 30% up to | €60,000 | €72,000 |
| 35% above | €60,000 | €72,000 |
The Tax Department has its own indicative 2026 calculator, in Greek and English.
Who takes the tax, and when?
Your employer takes it from each salary; you file a tax return for the year.
Taken from each salary. Your employer withholds income tax, social insurance and GESY when it pays you. Tell it about your deductions on form T.F.59.
Sources (4)
Income Tax Law 118(I)/2002, consolidated text (CyLaw) · Social Insurance Law 59(I)/2010, consolidated text (CyLaw) · Health Insurance Organisation, brochure on GESY contributions · Tax Department, FAQs on the 2026 reform for individuals (May 2026)
The tax year is the calendar year. January to December. A 13th salary is taxed like any other month's pay.
Income Tax Law 118(I)/2002, consolidated text (CyLaw)
From 2026, you file a return. Every tax resident with a salary files one, and so does someone not resident here who is paid a salary for work done in Cyprus. A tax resident aged 25 to 70 on 31 December files one whatever they earn.
Tax Department, explanatory guide on the 2026 reform for individuals (May 2026)
Not tax resident? Same bands. Salary for work done in Cyprus is taxed on the same bands, but the new family deductions are for residents only. Which are you? → Tax residency
Income Tax Law 118(I)/2002, consolidated text (CyLaw)
How to get a Cyprus tax number → Tax number
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