Tax guide · 2026
Everything an employee in Cyprus should know
Curated from the Tax Department's guidance on the reform in force from 1 January 2026.
Tax residency
You're resident for a calendar year if either applies:
- 183-day rule — you spend more than 183 days in Cyprus.
- 60-day rule — you spend at least 60 days in Cyprus, have a job, business or directorship here, keep a home here, are not resident elsewhere, and don't spend more than 183 days in any other country.
Residents are taxed on worldwide income; non-residents only on Cyprus-source income.
Income tax bands
| €0 – €22,000 | 0% |
| €22,001 – €32,000 | 20% |
| €32,001 – €42,000 | 25% |
| €42,001 – €72,000 | 30% |
| Over €72,000 | 35% |
Up to 2025 the tax-free band was €19,500 and the top 35% rate started at €60,000.
New personal allowances (2026)
The new child, housing and green allowances only apply if yearly income is below:
- €40,000 — single person without children
- €90,000 — couple (combined) with no children
- €100,000 — family with 1–2 children
- €150,000 — family with 3–4 children
- €200,000 — family with 5 or more children
Single-parent families use the same limits as other families.
Other deductions
Your social insurance, GESY, provident/pension fund (up to 10% of pay), medical fund (up to 2%) and life insurance premiums are deductible together — but in total no more than one fifth of your income.
Exemptions for people moving to Cyprus
20% of your salary, up to €8,550 a year, is exempt for 7 years if you take your first job in Cyprus after working abroad for a non-Cyprus employer for the 3 years before, and haven't worked in Cyprus in the last 15 years. Available for jobs starting by 31 December 2027.
Social insurance & GESY
8.8% from you and 8.8% from your employer, on pay up to €68,904 a year (€5,742 a month) in 2026. Self-employed people pay 16.6%.
Other taxes to know
Standard rate 19%, with reduced rates of 9%, 5% and 3% for certain goods and services.