Cyprus Tax Calculator (2026)
Income tax rates and take-home pay for Cyprus
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Cyprus Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-free band | €0 - €19,500 | 0.0% |
| 20% band | €19,501 - €28,000 | 20.0% |
| 25% band | €28,001 - €36,300 | 25.0% |
| 30% band | €36,301 - €60,000 | 30.0% |
| 35% band | €60,001+ | 35.0% |
Social insurance contributions (employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Employee social insurance | €0+ | 8.8% |
Capped at €5,862 per year
General Health System contributions (employee)
| Bracket | Income Range | Rate |
|---|---|---|
| GHS employee contribution | €0 - €180,000 | 2.6% |
Capped at €4,770 per year
Key Facts
Tax Year
2025
Currency
EUR
Top Rate
35.0%
Brackets
5 brackets
Tax-Free Threshold
€19,500
Social Contributions
2 items
Assumptions
- · Model applies to Cyprus tax residents with worldwide income and Cyprus domicile for SDC purposes.
- · Employment income only; excludes dividend, interest, and rental income subject to Special Defence Contribution.
- · Social insurance contributions capped at EUR 66,612 annual insurable emoluments (2025).
- · GHS contributions capped at EUR 180,000 annual income.
- · No SDC modeled for employment income (SDC applies to investment income only).
- · Standard employee deductions (life insurance, pension, medical fund) modeled as separate deductions subject to overall 1/5 of chargeable income limit.
- · All deductions assumed to be within annual limits for a typical employee.
Frequently asked questions
How much income tax will I pay as an expat working in Cyprus?
Cyprus has a progressive tax system with five income tax brackets ranging from 0% to 35%. The first EUR 19,500 of income is tax-free, then rates increase from 20% on income between EUR 19,501 and EUR 28,000, up to 35% on income above EUR 60,001. The exact amount depends on your total income and applicable deductions like social insurance contributions.
What are the social insurance and health contributions I need to pay in Cyprus?
As an employee in Cyprus, you pay two types of contributions: an 8.8% social insurance contribution (capped at EUR 5,862 annually) and a 2.65% General Health System contribution (capped at EUR 4,770 annually). Both contributions are deducted from your gross income before calculating income tax, which reduces your taxable income.
Is there a tax-free allowance in Cyprus?
Yes, Cyprus offers a generous tax-free band of EUR 19,500 per year, meaning you pay no income tax on the first EUR 19,500 of employment income. This is one of the highest tax-free allowances in Europe and significantly benefits both local workers and expats.
Do I pay tax on investment income like dividends and interest in Cyprus?
The calculator focuses on employment income only; dividends, interest, and rental income are subject to the Special Defence Contribution rather than standard income tax rates. If you have investment income, you should consult a local tax advisor for rates and rules specific to those income types.
What is the highest tax rate in Cyprus and when does it apply?
The highest income tax rate in Cyprus is 35%, which applies to all employment income above EUR 60,001 per year. This top rate is combined with your social insurance and health contributions, so your total tax and contribution burden on high income can exceed 40%.
Are there regional differences in Cyprus income tax rates?
No, Cyprus income tax rates are uniform across the country; there are no regional or subnational tax variations. The tax brackets and rates apply equally whether you work in Nicosia, Limassol, Paphos, or any other region.
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