Income tax in Cyprus
Updated
Our fee and our working time, complete documents to filed applications
From €500 10–20 working daysGovernment fees are paid separately at cost and are listed below with their source. Indicative prices; the final quote depends on your case.
- Residence test review (183-day or 60-day rule)
- Tax identification number (TIN) registration
- Non-domicile status application
| Checked on | Fact | Value |
|---|---|---|
| Tax Department, Ministry of Finance of Cyprus | Tax-free band | €22,000/year |
| Tax Department, Ministry of Finance of Cyprus | Top personal income tax rate | 35% |
| Tax Department, Ministry of Finance of Cyprus | Top band starts above | €72,000/year |
| PwC Worldwide Tax Summariessecondary source | Pay needed for the 50% exemption | €55,000/year |
| Facts checked on | ||
We usually reply within one business day.
From tax year 2026 Cyprus charges nothing on the first €22,000/year of an individual’s yearly income and 35% on the part above €72,000/year, with 5 bands in total. If a Cyprus job offer is bringing you here, we register you with the Tax Department, check your residence test and file the non-dom application.
Key facts
Cyprus income tax 2026 in six figures
The tax-free band rose to €22,000/year on 1 January 2026. Each row shows its source and the date we last compared it.
| No. | Field | Value | Source |
|---|---|---|---|
| 2.1 | Tax-free band | €22,000/year | [1] |
| 2.2 | Top personal income tax rate | 35% | [1] |
| 2.3 | Top band starts above | €72,000/year | [1] |
| 2.4 | Pay needed for the 50% exemption | €55,000/year | [2] |
| 2.5 | Crypto-asset gains, flat rate | 8% | [1] |
| 2.6 | Tax residency | Individuals: more than 183 days in Cyprus in the calendar year, or the 60-day rule. Companies: managed and controlled in Cyprus, or (from 1 Jan 2026) incorporated or re-domiciled in Cyprus unless a tax treaty provides otherwise. | [1] |
Source:[1]Tax Department, Ministry of Finance of Cyprus[2]PwC Worldwide Tax Summariessecondary source
Checked on
Note
How to calculate it without a calculator
Take chargeable income for the year. The first €22,000/year is taxed at 0%; then 20% from €22,000 to €32,000, 25% from €32,000 to €42,000, 30% from €42,000 to €72,000; only the euros above €72,000/year pay 35%. Add up the slices.
Full explanation
Worked example at €72,000, the edge of the top band: nothing on the first €22,000/year, then 20% of €10,000 (€2,000), 25% of €10,000 (€2,500), 30% of €30,000 (€9,000). Total €13,500, an effective rate of 18.75%, with no euro reaching 35%. The example leaves out social insurance, deductions and any exemption; the exemptions are worked through under special regimes below.
Checked on cy-td-individuals-guide-2026
Tax residency
Starting a Cyprus job: residency, documents, timing
Cyprus taxes residents on worldwide income, and residence is tested per calendar year: over 183 days, or at least 60 days under the 60-day rule. A Cyprus employment contract meets one of the 60-day conditions on its own.
Individuals: more than 183 days in Cyprus in the calendar year, or the 60-day rule. Companies: managed and controlled in Cyprus, or (from 1 Jan 2026) incorporated or re-domiciled in Cyprus unless a tax treaty provides otherwise.
I start work mid-year. Am I resident for that year?
Only if the days add up. Under the 60-day rule you need at least 60 days in Cyprus, no more than 183 days in any other single state, the Cyprus job, and a home in Cyprus you own or rent, all in the same calendar year. A job that starts in November rarely leaves room for 60 days in that calendar year.
Checklist: what to have ready before we file
Passport; the signed contract or offer letter from the Cyprus employer; a lease or title deed for your home in Cyprus; a record of travel days for the year (boarding passes, entry and exit stamps); and, for the 50% exemption, proof that you were not Cyprus resident in the 15 years before the job, such as tax residency certificates from your previous country.
Checked on PwC Worldwide Tax Summariessecondary source
What takes time, and what cannot be sped up?
Our part takes 10–20 working days from a complete document set: tax number registration, the residence test review and the non-dom application. The Tax Department’s own processing time is not published in our reference. The day count itself cannot be shortened: the 60 days or 183 days are days actually spent in Cyprus in that year.
Will my old country tax the same salary?
Where a treaty applies, one country gives way. The Ministry of Finance lists 72 double tax treaties, 69 of them with an entry-into-force date. Which one covers you, and from which day, depends on your previous country.
Checked on Ministry of Finance of Cyprus
The information on this site is general and is not legal advice for your specific situation. Whether you are resident in a given year, and how much income tax you owe, is assessed in an individual consultation.
Rates
Cyprus income tax rates and the charges next to them
Personal income tax tops out at 35% above €72,000/year. Dividends and interest follow separate rules: the defence contribution, which depends on domicile, not on the income bands.
Facts checked on
Top personal income tax rate35%
Tax-free band€22,000/year
Top band starts above€72,000/year
Crypto-asset gains, flat rate8%
Defence contribution on dividends, domiciled5%
Also on a Cyprus payslip or investment account
Defence contribution on interest, domiciled17%
Defence contribution on rent0%
Social insurance, employer rate (employee pays the same)8.8%
Checked onPwC Worldwide Tax Summariessecondary source
SourcesTax Department, Ministry of Finance of CyprusPwC Worldwide Tax Summariessecondary source
Bands changed onTax reform in force (Income Tax (Amending) Law N. 244(I)/2025 and related laws, gazetted 31 Dec 2025): CIT 15%, tax-free threshold EUR 22,000, SDC on dividends for domiciled individuals 5%, deemed dividend distribution abolished for 2026+ profits, non-dom extension for EUR 250,000 per 5 years, 60-day rule relaxed, incorporation test for company residency, 8% tax on crypto gains, 7-year loss carry-forward, stamp duty abolished.
These rates and the rule above show how the bands work. The tax on your own salary, after exemptions, contributions and deductions, is calculated in an individual consultation, not on this page.
Set up tax residencySpecial regimes
Exemptions and flat rates for individuals
A new resident paid over €55,000 can exempt 50% of the salary. At €72,000 that cuts the bill from €13,500 to €3,000; the 20% exemption would give €10,935 and the 25% one €8,100. Only one of them applies at a time.
IndividualsNon-domiciled (non-dom) statusDefence contribution on dividends0%
Changed
Cyprus tax residents who are not Cyprus-domiciled pay no Special Defence Contribution (SDC) on dividends, interest and (until 2025) rent, worldwide. Someone without a Cyprus domicile of origin becomes deemed domiciled after being tax resident for at least 17 of the last 20 years. From 2026 the status can be extended for up to two 5-year periods by paying a lump-sum SDC of EUR 250,000 per period (EUR 50,000 a year), on application to the Tax Commissioner by 30 June of the first year of each period; the choice is irrevocable and the amount is non-refundable.
| Defence contribution on dividends | 0%Checked on |
|---|---|
| Resident years before deemed domicileTax resident for at least 17 of the 20 years preceding the tax year = deemed domiciled; status kept until 20 years (not necessarily consecutive) of non-residence. | 17 yearsChecked on |
| Lump sum per extension periodPer 5-year extension period (EUR 50,000 per year), maximum two periods; paid by the end of the month after the application is approved. | €250,000Checked on |
Suits
Residents without a Cyprus domicile of origin who receive dividends or interest. A domiciled resident pays 5% on dividends and 17% on interest.
Who this is not for
People born with a Cyprus domicile, and long-term residents already deemed domiciled. It changes nothing on salary: employment income still goes through the bands.
Legal basisSpecial Contribution for the Defence (Amending) (No. 4) Law of 2025 - Tax Department presentation
Individuals60-day tax residency ruleMinimum days in Cyprus60 days
Changed
An individual becomes Cyprus tax resident without 183 days if in the same year they stay in Cyprus at least 60 days, do not reside in any other single state for more than 183 days, carry on a business or are employed/hold an office in Cyprus (or with a Cyprus-resident person) at any time in the year, and maintain a permanent home in Cyprus (owned or rented). From 1 Jan 2026 the condition 'not tax resident in any other state' was removed.
| Minimum days in Cyprus | 60 daysChecked on |
|---|---|
| Maximum days in any other single state | 183 daysChecked on |
Suits
Employees who split the year between countries and keep a job and a home in Cyprus.
Who this is not for
Anyone over 183 days in one other state, or without a Cyprus job, business or home.
Legal basisIncome Tax (Amending) Law N. 244(I)/2025 - Tax Department presentation
IP box (modified nexus)
A notional deduction of 80% of qualifying profits from qualifying intellectual property (patents, copyrighted software, certain innovative assets; not trademarks), scaled by the modified nexus fraction. The old (non-nexus) IP regime closed on 30 June 2016 with grandfathering until 30 June 2021.
Legal basisCyprus - Corporate - Tax credits and incentivessecondary source
IndividualsEmployment income exemptions for new residents (50% / 20% / 25%)Pay needed for the 50% exemption€55,000/year
50%: first employment in Cyprus from 1 Jan 2022, annual remuneration over EUR 55,000, not Cyprus resident for at least 15 consecutive years before the employment; lasts 17 years. 20%: capped at EUR 8,550 a year, for individuals who were not resident for at least 3 consecutive years before the employment and were employed abroad by a non-resident employer; 7 years; not combinable with the 50% exemption. 25%: capped at EUR 25,000 a year, for 2025-2030, for returning residents earning over EUR 30,000 in the first 12 months after 7 years of non-residence; 7 years. The 2026 reform presentation of the Tax Department does not list any change to these exemptions.
| Pay needed for the 50% exemptionAnnual remuneration from the Cyprus employment must exceed EUR 55,000. No change to this threshold is shown in the Tax Department 2026 reform presentation; figure itself from a secondary source. | €55,000/yearChecked on |
|---|---|
| 50% exemption lasts | 17 yearsChecked on |
| 20% exemption, yearly cap | €8,550/yearChecked on |
| 20% exemption lasts | 7 yearsChecked on |
Suits
First Cyprus job after at least 15 years abroad (50%); after 3 years abroad working for a foreign employer (20%); returning residents after 7 years away earning over €30,000, with the 25% exemption capped at €25,000 a year for 2025–2030, for 7 years. The figures come from PwC Tax Summaries, a secondary source.
Who this is not for
People who were Cyprus resident in the years just before the job, and anyone hoping to stack two exemptions: the 20% cannot be combined with the 50%.
Legal basisCyprus - Individual - Income determinationsecondary source
Notional interest deduction (NID)
Companies may deduct notional interest on new equity introduced after 31 Dec 2014 used in the business. The NID rate is set by reference to 10-year government bond yields plus a 5% premium (from 1 Jan 2020). The NID cannot exceed 80% of the taxable profit generated by the new equity; unused NID is not carried forward.
Legal basisCyprus - Corporate - Tax credits and incentivessecondary source
Tonnage tax
Qualifying ship owners, charterers and ship managers pay tonnage tax based on the net tonnage of the vessels instead of corporate income tax on qualifying shipping profits. Compulsory for Cyprus-flag ship owners, optional for others; the regime runs until 31 Dec 2029, with up to 30% lower tonnage tax for environmentally friendly vessels.
Legal basisCyprus - Corporate - Taxes on corporate incomesecondary source
IndividualsCrypto-asset gains of individuals (flat 8%)Flat rate on gains8%
Changed
From 1 Jan 2026 individuals' gains from crypto-asset transactions are taxed at a flat 8% under the new Article 20E of the Income Tax Law (mining excluded).
| Flat rate on gains | 8%Checked on |
|---|
Suits
Individuals who sell or swap crypto-assets: from 1 January 2026 the gain pays 8% flat instead of going into the income bands.
Who this is not for
Mining income, which the rule excludes, and crypto held through a company, which pays corporate tax instead.
Legal basisIncome Tax (Amending) Law N. 244(I)/2025 - Tax Department presentation
Which exemption fits your contract, and what it saves you, is assessed in an individual consultation; the figures above illustrate the rule and do not calculate your tax.
Every exemption needs Cyprus tax residency firstSpending 60 days or more in Cyprus this year for work? Put your tax residency on file.
From €500 10–20 working daysYou get a written quote and the document checklist for your case.
Government fees are paid separately at cost and are listed below with their source.
We usually reply within one business day.
FAQ
Income tax in Cyprus: short answers
Is there an income tax calculator for Cyprus?
Not on this site; the rule is short enough to do by hand. Tax the first €22,000/year at 0%, then 20% from €22,000 to €32,000, 25% from €32,000 to €42,000, 30% from €42,000 to €72,000, and 35% only on income above €72,000/year. At €72,000 that gives €13,500.
Checked onWhat are the income tax rates in Cyprus for 2026?
5 bands: 0% up to €22,000/year, 20% from €22,000 to €32,000, 25% from €32,000 to €42,000, 30% from €42,000 to €72,000, and 35% above €72,000/year. The tax-free band was raised for tax year 2026.
Checked onMy Cyprus offer pays above the 50% exemption threshold. What do I pay?
If this is your first Cyprus job after at least 15 years abroad and the salary exceeds €55,000, half of it is exempt for 17 years. The other half goes through the normal bands.
Checked onHow is crypto taxed for individuals in Cyprus?
8% flat on gains from 1 January 2026, outside the income bands. Mining is excluded.
Checked onWhich law sets income tax in Cyprus, and what changed in 2026?
The Income Tax Law, as amended by Income Tax (Amending) Law N. 244(I)/2025, in force from 1 January 2026. For individuals it raised the tax-free band to €22,000/year, set the 8% crypto rate and relaxed the 60-day rule; dividends for domiciled residents dropped to 5% defence contribution under a separate amending law.
Checked onRequest
Set up your Cyprus tax residency
Tell us your start date, your employer’s country and where you lived in recent years. We reply with a quote and the checklist for your case.
Package for this request
Tax residency and non-dom registration
From €500 10–20 working days- Residence test review (183-day or 60-day rule)
- Tax identification number (TIN) registration
- Non-domicile status application
Government fees are paid separately at cost and are listed below with their source.
- We usually reply within one business day.
- We check your days and your prior residence against the 60-day and 183-day tests and the exemption conditions.
- You accept the quote; we file within 10–20 working days of a complete document set and send each confirmation as it arrives.
Facts checked on against 4 primary sources
ScopeEvery band, rate, threshold and day count on this page was compared with the source named next to it; the worked examples are calculated from those figures. The check does not cover your own tax position.
- Top personal income tax rate
- Tax-free band
- Tax residency
- Employment income exemptions
- Defence contribution
Sources
7Primary 4 · Checked on
- Tax Department, Ministry of Finance of CyprusGovernmentExplanatory guide on the 2026 tax reform for individuals who are Cyprus tax residents (version 11/05/2026)Income Tax (Amending) Law N. 244(I)/2025 - Tax Department presentationSpecial Contribution for the Defence (Amending) (No. 4) Law of 2025 - Tax Department presentation
- Ministry of Finance of CyprusGovernmentDouble Tax Treaties
- PwC Worldwide Tax SummariesSecondaryCyprus - Individual - Taxes on personal incomeCyprus - Individual - ResidenceCyprus - Individual - Income determination
How we choose sources and how often we re-check them is set out in our Editorial policy