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Cyprus Income Tax 2026

Calculate Your 2026 Take-Home Pay The Cyprus House of Representatives has enacted the most significant tax overhaul in two decades.

Our calculator is the first to integrate the January 2026 Reform data, including the increased personal threshold and the new dividend SDC rates.

Calculate your income tax live

Legal Notice & Accuracy: This calculator and guide are updated following the official publication of the 2026 Tax Reform Bills.

All calculations are reviewed by our senior tax compliance team at Cyprus Company Formation.

For complex “Non-Dom” or Corporate structuring, contact our consultants.

Cyprus Income Tax Calculator

Salary Distribution & Tax Breakdown

Expat / New Resident Relief Toggle for 20% or 50% exemption
Net Annual €0.00
Net Monthly €0.00
Income Tax: €0.00
Social Insurance: €0.00
GeSY (Healthcare): €0.00

Cyprus Income Tax Calculator

Following the official legislation voted on December 22, 2025, the Cyprus tax landscape has been redefined.

This guide provides the exact logic used by professional accountants to calculate your net salary and tax liabilities under the new 2026 rules.

Key Changes in the 2026 Cyprus Tax System

The Cyprus House of Representatives approved a comprehensive tax package in late 2025. Whether you are an employee, a “Non-Dom” expat, or a business owner, these changes directly impact your take-home pay:

  • Increased Personal Threshold: The tax-free limit is now €22,000 (up from €19,500).
  • New Tax Brackets: Income bands have been widened to provide relief to middle-income earners.
  • Corporate Tax Hike: The headline rate has increased to 15% (Pillar Two alignment).
  • Dividend Tax Cut: SDC on dividends for residents is reduced from 17% to 5%.
  • Crypto & Equity Incentives: A flat 8% tax now applies to cryptocurrency gains and approved stock options.

Personal Income Tax Brackets (Effective Jan 1, 2026)

Chargeable Income (€)Tax RateCumulative Tax (€)
0 – €22,0000%0
€22,001 – €32,00020%2,000
€32,001 – €42,00025%4,500
€42,001 – €72,00030%13,500
Over €72,00135%–

Social Insurance & GESY (Healthcare) in 2026

Your net income is calculated after Social Insurance (SI) and General Healthcare System (GESY) contributions.

  • Social Insurance (Employee): Remains at 8.8%. The annual insurable earnings cap has been adjusted for inflation (Verify your specific cap based on the 2026 Social Insurance announcement).
  • GESY (Employee): Fixed at 2.65% of gross earnings, capped at an annual income of €180,000.
  • Social Insurance (Self-Employed): The rate for self-employed individuals is 16.6%.

Maximizing Your Relief: New Family & Lifestyle Deductions

The 2026 reform introduces targeted deductions based on household income:

  • Child Deductions: €1,000 for the 1st child, €1,250 for the 2nd, and €1,500 for the 3rd+ (subject to household income caps).
  • Housing Relief: Deductions of up to €2,000 for rent or mortgage interest on a primary residence.
  • Green Incentives: Up to €1,000 deduction for electric vehicle (EV) purchases and energy upgrades.
  • Home Insurance: A new €500 deduction for insurance against natural disasters.

Step-by-Step: How to Calculate Your Tax

To calculate your take-home pay in 2026, follow these three distinct steps:

Step 1: Deduct Social Contributions

Before calculating income tax, you must deduct Social Insurance and GeSY (Healthcare) from your gross salary.

  • Social Insurance: 8.8% (Capped at maximum insurable earnings. Approx. €64,000 for 2026).
  • GeSY: 2.65% (Capped at €180,000, so max +/- €4.800/yr).

Step 2: Apply Personal Allowances

Subtract your social contributions from your gross salary. The remaining amount is your Taxable Income.

Step 3: Calculate Progressive Tax

Apply the 2026 bands to your Taxable Income.

  • Example: If your taxable income is €30,000:
    • First €22,000 = €0 tax.
    • Remaining €8,000 taxed at 20% = €1,600 annual income tax.

Frequently Asked Questions about Income Tax Calculations

What is the tax-free threshold in Cyprus for 2026?

As of January 1, 2026, the tax-free threshold in Cyprus has been increased to €22,000 per year for individuals.

Start with your gross salary and subtract 8.8% for Social Insurance and 2.65% for GeSY. Then, apply the new progressive tax bands starting from the €22,000 tax-free threshold.

As of 2026, Cyprus has an extensive network of over 65 active Double Tax Treaties. These treaties prevent you from being taxed in two countries on the same income (e.g., dividends or pensions).

Tax treaties usually reduce or eliminate withholding tax on income coming from abroad. For most expats, this means their foreign-sourced dividends and interest are taxed at 0% in Cyprus while also being exempt or lower-taxed in the country of origin.