An executive who moved to Cyprus, with the 50% exemption

An executive who moved to Cyprus for a job paid €120,000 a year. The employment began after 2021, the executive had not been tax resident in Cyprus — nor worked here — for the fifteen years before it, and the pay is above €55,000. Half of the salary is exempt from income tax under article 8(23A).

• The exemption, €60,000, reaches income tax only. GESY is charged on the whole salary, and social insurance on the salary up to the year’s ceiling.
• The social insurance ceiling rises in 2026, from €66,612 to €68,904 of pay a year, so the contribution grows from €5,862 to €6,064 while income tax falls from €8,172 to €7,127.

• An employee on €28,000
• An employee on €60,000
• A couple with two children
• A returnee with the 25% exemption
• An employee who lets a flat
• A non-domiciled resident living on investments