Cyprus tax calculator

This calculator estimates your 2026 Cyprus taxes as a founder or employee: income tax on salary under the new bands, social insurance, GESY with its caps, and SDC on dividends by domicile status. It runs the rules in force since 1 January 2026 — the December 2025 reform — not the pre-reform scale many online calculators still quote.

What the calculator includes

• The 2026 income tax bands: 0% up to €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000, 35% above.
• Social insurance at 8.8% (employee share) on insurable earnings up to €68,904 a year.
• GESY at 2.65% on employment income and dividends, on a base capped at €180,000 of total annual income — at most €4,770 a year on dividends.
• SDC on dividends: 5% for Cyprus-domiciled residents, 0% under non-dom status — both on post-2025 profits.
• The 50% expat exemption where you qualify: remuneration above €55,000 from a first Cyprus employment started in 2022 or later, after 15+ years of non-residence.

What it deliberately leaves out

• The new 2026 personal deductions — per-child amounts of €1,000–€1,500 per parent under family income caps, up to €2,000 for main-residence loan interest or rent, €1,000 for energy upgrades or an EV, €500 for home insurance. They depend on family facts, payment methods and on-time filing, so a slider would mislead.
• The transitional 17% SDC on dividends from pre-2026 profits.
• The 20% and the new 25% expat exemptions — narrower reliefs that cannot combine with the 50%.
• The flat 8% regimes for qualifying stock options and crypto gains, and the 5% foreign pension election.
• Treaty effects and non-cash benefits.
• Anything to do with property. This calculator models income, not real estate: transfer fees, the VAT position on a purchase, municipal and sewerage charges and the abolished immovable property tax are a different set of rules entirely, and they live on Cyprus property tax.

Three worked examples

The arithmetic below is what the calculator runs. It uses the 2026 bands — nothing on this page is computed on the pre-reform scale.

A salary of €30,000. The first €22,000 is taxed at nothing. The remaining €8,000 falls in the 20% band, so income tax is €1,600. Social insurance takes 8.8% of gross — €2,640 — and GESY 2.65%, or €795. Total deductions €5,035, leaving roughly €24,965 before any personal deductions are claimed.

A salary of €60,000. Tax runs through three bands: nothing to €22,000, 20% on the next €10,000 (€2,000), 25% on the next €10,000 (€2,500), then 30% on the €18,000 above €42,000 (€5,400) — €9,900 in income tax. Social insurance is 8.8% of €60,000 (€5,280), GESY 2.65% (€1,590).

A salary of €120,000. Income tax reaches the 35% band above €72,000. Social insurance stops growing: the maximum insurable earnings for 2026 are €68,904, so the employee pays 8.8% on that ceiling — €6,064 — not on the full salary. GESY keeps running to its own cap of €180,000 of total income. This is why the effective rate curve flattens between €70,000 and €180,000 and then bends again.

If the same €120,000 arrives as dividends to a non-domiciled resident instead of salary, the picture changes completely: no defence contribution, no social insurance, only GESY at 2.65% — and that stops at the €180,000 base, capping the health line at €4,770 a year. That gap between salary and dividends is the single biggest lever in a Cyprus tax plan, and it is why non-dom status matters more than the headline rate.

What changed against 2025

Those deductions are new, they are claimed on the annual return, and they are forfeited entirely if the return is filed late. Most calculators still online do not include them at all, because most were built before the reform.

How to read the result

Treat the output as a planning estimate, not a filing. It shows your effective rate on the mix you enter — the number that actually matters when choosing between salary and dividends — while your marginal rate tells you what the next euro costs. If the result drives a real decision — relocating, setting a salary, distributing profits — have us check the assumptions against your documents first; that check is quick, and being wrong here is not.

Full context for every rate in the model lives on the Cyprus taxes overview. Employer-side costs are a separate question — that is the salary calculator.