Tool
Cyprus Personal Income Tax Calculator
Income tax on employment income against the 2026 bands. The relocation exemptions are applied before the bands, which is where most of the difference comes from.
Methodology
How this is calculated
Cyprus taxes employment income of tax residents at progressive marginal rates. Each band applies only to the slice of income falling within it, so a rise into a higher band never reduces net income.
Bands applying from 2026
| Band | Rate | Maximum tax in band |
|---|---|---|
| 0 to 22,000 | 0% | 0 |
| 22,001 to 32,000 | 20% | 2,000 |
| 32,001 to 42,000 | 25% | 2,500 |
| 42,001 to 72,000 | 30% | 9,000 |
| Over 72,000 | 35% | No ceiling |
Worked example, 40,000 with no exemption
- 0 to 22,000 at 0 percent gives nil
- 22,000 to 32,000 at 20 percent gives 2,000
- 32,000 to 40,000 at 25 percent gives 2,000
- Total income tax 4,000, an effective rate of 10 percent on gross
Article 8(23A): 50 percent exemption
Exempts 50 percent of remuneration from employment in Cyprus, for individuals whose remuneration exceeds 55,000 per year, available for 17 years. Aimed at senior hires and relocating founders taking employment with a Cyprus company.
Exempt = Gross x 50%, where Gross > 55,000Article 8(21B): 25 percent exemption
Exempts 25 percent of remuneration, capped at 25,000 per year, for individuals whose remuneration exceeds 30,000, available for 7 years. This is the brain gain measure aimed at returning professionals.
Exempt = min(Gross x 25%, 25,000), where Gross > 30,000Order of operations
The exemption reduces income before the bands are applied. Because the first 22,000 is already taxed at nil, an exemption pushes income down through the bands rather than simply removing a flat percentage of the tax, so the saving is larger than the headline percentage suggests.
Taxable = Gross - Exempt, then bands applied to TaxableWhat this does not do
- It does not test eligibility. Both exemptions carry conditions on first employment in Cyprus, prior residence, and the timing of the claim. Only one may be claimed in respect of the same income.
- It does not include social insurance or GESY contributions, which are a separate charge. Model those in the social insurance calculator.
- It does not include Special Defence Contribution, which applies to dividends, interest and rent rather than to employment income, and does not apply at all to a non-domiciled resident.
- It does not model pension contributions, life assurance relief, or donations, each of which reduces taxable income.
Published for general information. It is a model, not advice on any specific set of facts, and it does not create a client relationship. Results depend entirely on the figures entered and on assumptions that may not hold for a particular structure.
Illustrative only, not a determination
This calculator applies published rules to the figures you enter. It does not know your facts, and a position that holds on these numbers may not hold on yours. A short conversation establishes which of the assumptions above actually apply to your situation.
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