Cyprus Tax Calculator 2026

The reform applies from tax year 2026. You will file your 2026 tax return in 2027 (deadline: July 31, 2027).

The tax-free allowance increased from €19,500 to €22,000 starting from tax year 2026.

Anyone with gross income falling under article 5 of the Income Tax Law, whatever its size, and anyone who is a Cyprus tax resident and by 31 December of the tax year has turned 25 but not yet 71, whatever their income. A person with no gross income who is under 25, or who has already turned 71, does not have to file. The Council of Ministers can exempt further categories by decree. Source: the Tax Department's FAQ on the 2026 reform, questions 6 and 7.

All gross income of household members living under the same roof (including spouse/partner): salaries, pensions, rent, dividends, interest, alimony, benefits, grants, and other income sources in Cyprus or abroad.

Student children's employment income, child benefit, student grants, scholarships, and disability/chronic illness benefits.

Enter only dependent biological/adopted children you can claim. The calculator uses this count for the income threshold bracket. If your household includes additional non-dependent children, the official threshold may be higher.

It is used to calculate your total 'Family Income'. This determines if you are eligible for the new 2026 deductions (Children, Housing, Green). For example, a family with 2 children has a €100,000 income limit.

As of Dec 31: under 18, OR secondary student under 20, OR National Guard soldier under 21, OR university student under 24, OR permanently disabled (any age).

Single Parent Families (living WITH children) get DOUBLE the deduction: €2,000 for 1st child, €2,500 for 2nd... AND use the higher family income thresholds (€100k+).

A parent living with at least one dependent child, without a spouse/civil partner, and not cohabiting with someone they have children with.

You are treated as a 'Single Person' (not Single Parent). If you can claim the dependent child deduction, it is at the normal rates and uses the €40,000 income threshold.

Up to €2,000 per person per year for mortgage interest OR rent on your primary residence in Cyprus. Single-parent families claim once. Subject to income thresholds.

No. The maximum combined deduction for interest and rent is €2,000 total, not €2,000 each.

Restructured loans still qualify, as long as payments are being made regularly through Dec 31 of the tax year.

Rent must be paid by bank transfer, card, or recognized electronic payment method. Cash and cheques do NOT qualify.

Yes. The family income thresholds (€100k for 0-2 children, etc.) apply to BOTH child deductions and housing deductions (rent/mortgage interest).

Yes. The total deduction can be split between spouses as they choose, provided each person's claim does not exceed the €2,000 individual limit and the total claim does not exceed the actual expense.

Up to €1,000 per person per year for energy efficiency improvements or electric vehicle purchase. Subject to income thresholds.

Thermal insulation, window replacement, hot water pipe insulation, heat recovery systems, energy management systems, solar panels, batteries.

New M1 category electric vehicles (delivered within 6 months or under 6,000 km), plus AC or DC charging stations.

Unused amounts can carry forward up to 4 years (€1,000/year max), only if you qualify in the expense year. If you don't qualify in year 1, you can't carry forward.

Yes. Any government grants (e.g., 'Photovoltaics for All') reduce the expense amount eligible for deduction.

Up to €500 per person per year for insurance covering natural disasters (fire, earthquake, flood). NO income threshold applies.

No. You can claim this for any property you own: primary residence, vacation home, or rental property.

That's fine. Even if the policy includes theft or other coverage, the deduction still applies.

No! SDC on rental income was abolished from January 1, 2026. Rental income is now taxed only with income tax and GESY contribution.

Through provisional tax payments in two installments: July 31 and December 31 of each tax year.

No! From July 1, 2026, rent in Cyprus must be collected only via bank transfer, card, or electronic payment.

If you surrender within 3 years, 30% of the premiums you claimed as deductions are added back to your taxable income. Between 3-6 years, 20% is added back.

New for 2026: If you do a partial surrender within 4 years, 50% of the surrendered amount is taxed. After 4 years, specialized rules apply based on the cash surrender value vs premiums paid.

Article 8(21B) grants a 25% exemption on employment income or business profits, capped at €25,000/year, for 7 consecutive years. It was enacted by Law 17(I)/2026, published in the Gazette on 6 March 2026, and applies retroactively from 1 January 2025 to employment or business started between 2025 and 2030.

You must: (1) be a Cyprus tax resident, (2) have been non-resident for the 7 prior years, (3) have previously been a Cyprus resident, (4) earn over €30,000/year, and (5) hold a university degree with 36+ months foreign work experience (or 84 months without a degree). Once in a lifetime.

20% (Art. 8(21A)): max €8,550/yr, 7 years, 3 years abroad; first employment starting by the end of 2027. 25% (Art. 8(21B)): max €25,000/yr, 7 years, 7 years abroad, €30k+ income. 50% (Art. 8(23A)): no cap, 17 years, 15 years abroad, €55k+ income. Only one can be used per year.

Yes. The Non-Domiciled regime is independent and can be claimed simultaneously with any employment income exemption. Non-Dom exempts you from SDC on dividends and interest.

No formal application is needed: claim it through your employer's PAYE system using Form TF59/IR59. Keep documentation proving eligibility. You can also request a tax ruling from taxruling@tax.mof.gov.cy.

Yes! Unlike the 20% and 50% exemptions which are limited to employees, the 25% exemption under Art. 8(21B) also applies to business profits of self-employed individuals.

You can choose to have it taxed separately at a flat 20% on any amount over €22,000 (from 2026). If your other income is low, standard taxation might be better. The calculator helps you decide.

Carried interest from AIF/UCITS employment can be taxed at a flat 8% rate, with a minimum tax of €10,000 per year. You can elect this option annually.

No! The new personal deductions (Housing, Green, Children) are ADDITIONAL. They do not reduce the 'Net Income' used to calculate the 1/5th cap for Social Insurance, Provident Fund, and Life Insurance.

You need to ask your employer to fill out form TF59 (Greek) / IR59 (English) to apply deductions and increase your net salary from the first month. This allows you to benefit from the tax relief immediately rather than waiting to file a tax return.

It works out income tax, social insurance, GESY and the defence contribution of a Cyprus tax resident for 2025 and 2026: salary, the 20%, 25% and 50% relocation exemptions, the 2026 family deductions, rent, dividends, interest, foreign and widow's pensions, short-term letting and self-employment. It does not compute: capital gains tax on property in Cyprus, a separate 20% tax with a return of its own; gains on crypto-assets; company and partnership returns; VAT; the special contribution on 2012–2016 back pay (back pay itself belongs to the year it was earned, not to this one); retirement lump sums and gratuities; the 2026 rule for cashing in part of a life policy; the restoration deduction for a listed building; the €250,000 payment for the alternative defence-contribution method; and which of two countries you are resident in, which a tax treaty decides. Where one of these applies to you, the figures here are a starting point, not the answer.

Yes. A non-resident is taxed in Cyprus only on Cyprus-source income, under rules this calculator does not apply, so its figures would be wrong for you. Being resident but not domiciled is different, and it is covered: tick “Non-domiciled (non-dom)” under other income and the defence contribution on dividends, interest and rent is dropped while GESY stays. The residence rules are the 183-day rule and the 60-day rule.