Cyprus salary calculator 2026
Work out your take-home pay in Cyprus after income tax, social insurance and GESY, with the 2026 tax bands and the exemptions for people moving to Cyprus.
Estimates for the 2026 tax year, for one person. They don't include benefits in kind, provident funds, life insurance or income other than this salary. Rates checked in October 2026. For a personal answer, speak to an accountant or tax adviser.
How income tax works in Cyprus in 2026
Cyprus taxes income in bands. Since the tax reform that applies from 1 January 2026, the first €22,000 is tax-free and the top rate of 35% starts above €72,000. Social insurance and GESY are taken off your pay first, and both reduce the income you are taxed on.
| Taxable income | Rate |
|---|---|
| Up to €22,000 | 0% |
| €22,001 to €32,000 | 20% |
| €32,001 to €42,000 | 25% |
| €42,001 to €72,000 | 30% |
| Above €72,000 | 35% |
Social insurance and GESY
- Social insurance: employees pay 8.8% of their pay up to €5,742 a month (€68,904 a year in 2026). The self-employed pay 16.6% of their income, with a minimum set by profession.
- GESY, the national health system: 2.65% of an employee's pay and 4% for the self-employed, on income up to €180,000 a year.
- Your employer also pays contributions on top of your salary (social insurance, redundancy and training funds, social cohesion and GESY), so a job costs them about 15% more than your gross salary.
Tax breaks for people moving to Cyprus
- 20% exemption: for a first job in Cyprus starting after 26 July 2022, if you weren't Cyprus resident for the 3 years before and worked abroad for an employer outside Cyprus. 20% of your pay is tax-free, up to €8,550 a year, for 7 years.
- 50% exemption: for a first job in Cyprus paying more than €55,000 a year, if you weren't Cyprus resident for at least 15 years before. Half of your pay is tax-free for 17 years.
- 25% relief: for people returning to Cyprus after at least 7 years working abroad, who start work or a business from 2025 to 2030 earning over €30,000. 25% of the income is tax-free, up to €25,000 a year, for 7 years.
Read more in our guide to the Cyprus tax reform 2026.
Earning your money abroad
Many expats in Cyprus work remotely for a company abroad. What counts is your tax residency, not where the money comes from:
- Not tax resident in Cyprus (fewer than 183 days a year and the 60-day rule doesn't apply): Cyprus doesn't tax a salary paid from abroad. You pay tax where you are tax resident. Many people on the digital nomad visa are in this position.
- Tax resident in Cyprus: your worldwide income is taxable here, including a salary from a company abroad, and GESY applies too. You can use the 20% or 50% exemption if you qualify, and double tax treaties stop you paying twice on the same income.
- The 60-day rule: you can be tax resident after only 60 days if you aren't tax resident anywhere else, don't spend more than 183 days in another country, have a home in Cyprus and work or run a business here.
- Non-doms (most expats) pay no defence contribution on dividends and interest for 17 years. That is why investment income can be largely tax-free, but a salary is still taxed.
Where social insurance is paid depends on your employer: an employer in another EU country normally keeps paying it there (with an A1 form); an employer outside the EU usually has to register in Cyprus.
Frequently asked questions
How much tax will I pay on a €40,000 salary in Cyprus in 2026?
For an employee with no exemptions: social insurance (8.8%) is €3,520 and GESY (2.65%) is €1,060. Both are deductible, leaving taxable income of €35,420 and income tax of about €2,855. Take-home pay is about €32,565 a year.
What are the income tax rates in Cyprus in 2026?
The first €22,000 of taxable income is tax-free. Then 20% up to €32,000, 25% up to €42,000, 30% up to €72,000 and 35% above €72,000.
Do I pay tax in Cyprus if my salary comes from abroad?
It depends on your tax residency, not on where the money comes from. If you are tax resident in Cyprus (more than 183 days a year, or the 60-day rule), your salary from a company abroad is taxed in Cyprus, and you may use the 20% or 50% exemption for new residents. If you are not tax resident, Cyprus does not tax a salary paid from abroad.
What is the 50% tax exemption?
Half of your employment income is tax-free for up to 17 years if your first job in Cyprus pays more than €55,000 a year and you were not tax resident in Cyprus for at least 15 years before (10 years for jobs started from 1 January 2022 to 29 June 2023).
Is the 13th salary taxed?
Yes. A 13th salary is part of your annual pay: it is taxed and has social insurance and GESY taken off like the other salaries. Choose 13 salaries in the calculator to see the amount of each payment.
Are the results exact?
They are estimates for the 2026 tax year. Your payslip can differ slightly because of rounding, benefits in kind, provident funds, life insurance and other deductions. For a personal answer, speak to an accountant or tax adviser.
Related guides
- Cost of Living in Cyprus in 2026: What to Budget by City
- Cyprus Digital Nomad Visa: Everything You Need to Know About Living and Working Remotely in Cyprus
- Cyprus Tax Reform 2026 Explained for Expats
- Cyprus Tax Residency: The 183-Day and 60-Day Rules Explained
- Finding Work in Cyprus: A Guide to Moving and Settling In
- How to Benefit from Taxes in Cyprus: Residency Rules in 2026, a Guide for Expats
- How to File a Personal Tax Return in Cyprus (Tax For All and TAXISnet)
- How to Get a Cyprus Tax Number (TIN) in 2026