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An employee who lets a flat
€40,000 of salary and €18,000 of rent a year.
Checked on 25 September 2026
The case
An employee paid €40,000 a year who also lets a flat for €18,000 a year. Tax resident and domiciled in Cyprus; the flat carries no mortgage.
What to notice
- Rent is taxed together with the salary, less a flat 20% allowance (€3,600), and it bears GESY at 2.65% like pay.
- For 2025 a domiciled landlord also paid defence contribution on rent — 3% on 75% of it, €405 here. From 2026 there is none, and the bands moved too: in all, €1,390 less is paid.
The working
| The working | 2025 | 2026 | Change |
|---|---|---|---|
| Salary before tax | €40,000.00 | €40,000.00 | — |
| Rent received | €18,000.00 | €18,000.00 | — |
| Social insurance | €3,520.00 | €3,520.00 | — |
| GESY on salary and rent | €1,537.00 | €1,537.00 | — |
| Rent: the 20% allowance | €3,600.00 | €3,600.00 | — |
| Taxable income | €49,343.00 | €49,343.00 | — |
| Income tax | €7,687.90 | €6,702.90 | −€985.00 |
| Defence contribution | €405.00 | €0.00 | −€405.00 |
| Everything paid | €13,149.90 | €11,759.90 | −€1,390.00 |
| Kept for the year | €44,850.10 | €46,240.10 | +€1,390.00 |
| Kept per month | €3,737.51 | €3,853.34 | +€115.83 |
| Share of income paid | 22.7% | 20.3% |
Open this case in the calculator
The calculator opens with these figures for 2026. Change any of them to see your own.
The rule behind it
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A kind of taxpayer, not a real person. The figures are computed from the case above by the same code the calculator runs, at the moment this page is opened. They are not advice on your own position.