Cyprus Tax Calculator 2026

Cyprus uses progressive system (2026 tax reform): 0% up to €22,000, 20% on €22,000-€32,000, 25% on €32,000-€42,000, 30% on €42,000-€72,000, 35% above €72,000. First €22,000 completely tax-free for everyone. Social insurance 8.8% employee (capped at €68,904/year) plus 2.65% GESY. Non-Dom status provides major exemptions on foreign income, dividends, interest for 17 years.

Non-Domiciled status: if not Cyprus tax resident for 17 of last 20 years before moving, you qualify. HUGE BENEFITS for 17 years: 0% tax on dividends (any source), 0% on interest income, exempt from Special Defence Contribution on dividends (5% on profits from 2026, 17% before) and interest (17%). Combined with 60-day residency rule and 0% capital gains on securities/crypto, makes Cyprus one of most tax-efficient EU jurisdictions.

Cyprus offers unique 60-day residency (vs 183 days elsewhere). Requirements: stay 60+ days in Cyprus, not tax resident elsewhere (< 183 days anywhere), maintain business/employment in Cyprus, have permanent home (owned/rented). Much easier than other countries. Combined with Non-Dom = powerful tax planning tool.

For Non-Doms: 0% tax on all dividends (Cyprus and foreign). For regular (domiciled) residents: 0% income tax but Special Defence Contribution on dividends — 5% on profits from 2026 onward (17% on profits up to 2025). Foreign dividends 0% for everyone. Non-Dom status eliminates SDC - massive benefit for business owners and investors.

Capital gains from securities (stocks, bonds, funds): 0% for everyone. Cryptocurrency gains: flat 8% income tax from 2026 (mining excluded). Only exception: 20% on disposal of Cyprus immovable property. Foreign property gains: 0%. Still one of the most favorable regimes in the EU for securities investors.

Employees: 8.8% social insurance, capped at €68,904 annually (2026). Employers: ~8.8%. Self-employed: 16.6%. NHS (GESY) contributions separate: 2.65% employee, 2.90% employer (capped at €180,000 of income). Total employee ~11.45% below cap. Much lower than Western Europe. Cover pension, healthcare, unemployment.

Tax year: calendar year (Jan-Dec). Filing deadline: July 31 following year for self-employed/business income, September 30 for individuals with only employment. Provisional tax payments due July 31 and December 31 current year. E-filing via TAXISnet. Employees with only salary often don't need separate filing if employer withholds correctly.

NO wealth tax. NO inheritance tax. NO estate duty. NO gift tax. Cyprus does not tax wealth, estates, or gifts. Property transfer fees apply when buying real estate (progressive up to 8%, reduced for close relatives). Extremely favorable for estate planning and wealth preservation. Major reason wealthy individuals choose Cyprus.

80% exemption on qualifying IP income (patents, copyrighted software, models). Effective corporate tax rate: 3% on IP profits (15% standard rate from 2026 × 20%). Must meet nexus requirements linking IP development to Cyprus. Very attractive for tech companies, software developers, R&D-intensive businesses. One of EU's most generous IP regimes.

Corporate income tax: flat 15% from 1 January 2026 (12.5% until 2025) - still among EU's lower rates. Extensive treaty network (65+ DTTs). 0% withholding tax on dividends paid out (usually). Notional interest deduction on equity. Participation exemption on qualifying dividends. IP Box 3% effective rate. Makes Cyprus premier holding company and IP jurisdiction in EU.