5 tax brackets from 0% to 35%
Cyprus's hidden benefit: EUR 19,500 tax-free threshold + Non-Dom regime (17 years tax-free dividends/interest for new residents). Rates 0-35%. A EUR 50,000 earner pays ~11% effective. Social insurance 8.8% (capped) + GESY 2.65%. No inheritance tax. Corporate tax: 12.5%.
Cyprus has 5 progressive brackets from 0% to 35%, with a generous EUR 19,500 tax-free threshold. Total employment deductions include 8.8% social insurance (capped at EUR 60,060) plus 2.65% GESY (national health). The effective rate is lower than headline suggests: a EUR 50,000 earner pays roughly EUR 5,500 income tax (~11%). Cyprus offers the Non-Dom regime: new residents can receive dividends and interest tax-free for 17 years. No inheritance tax and favorable treatment for foreign pensions. Corporate tax is just 12.5%. Filing deadline is July 31 for e-filing. Use our calculator to estimate your Cyprus tax liability.
| Taxable Income | Tax Rate |
|---|---|
| EUR 0 - EUR 19,500 | 0% |
| EUR 19,500 - EUR 28,000 | 20% |
| EUR 28,000 - EUR 36,300 | 25% |
| EUR 36,300 - EUR 60,000 | 30% |
| Over EUR 60,000 | 35% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Cyprus Tax Department
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Get Digital Nomad Insurance →Cyprus has 5 brackets: 0% on EUR 0-19,500 (tax-free), 20% on EUR 19,500-28,000, 25% on EUR 28,000-36,300, 30% on EUR 36,300-60,000, and 35% above EUR 60,000. The generous tax-free threshold means low-to-middle earners pay relatively little income tax compared to other EU countries.
Non-Domiciled (Non-Dom) residents can receive dividends, interest, and rental income from outside Cyprus completely tax-free for 17 years. To qualify, you must not have been a Cyprus tax resident for 17 of the past 20 years. This makes Cyprus extremely attractive for investors and business owners with international income.
Employees pay 8.8% social insurance (on income up to EUR 60,060 annually) plus 2.65% GESY (national health contribution). Employers add 12.3% social insurance + 2.9% GESY + other contributions. Self-employed pay 15.6% social insurance. Total employee deductions are approximately 11.45% before the cap.
GESY (Genikou Systimatos Ygeias) is Cyprus's universal healthcare system launched in 2019. Employees contribute 2.65% of salary, employers add 2.9%. This provides comprehensive healthcare coverage including GP visits, specialists, hospitalization, and medications. Pensioners and government benefit recipients pay 1.7%.
Individual tax returns (IR1) are due by July 31 for electronic filing (April 30 for paper filing). Provisional tax payments are due January 31, July 31, and December 31. Late filing incurs EUR 100 penalty plus 5% interest on unpaid tax. Employers must file monthly PAYE returns by the 5th of the following month.
Last Updated: March 2026