A returnee with the 25% exemption

Someone who was tax resident in Cyprus earlier, then spent more than seven years abroad, comes back to a job paying €50,000 a year. The employment starts within the 2025–2030 window, the pay is above €30,000 and the article’s test of qualifications and work abroad is met, so a quarter of the salary is exempt from income tax under article 8(21B), up to €25,000 a year.

• A quarter of €50,000 is €12,500, well under the €25,000 cap. As with every relocation exemption, GESY and social insurance are charged on the whole salary.
• The exemption is the same in both years; income tax falls from €2,644 to €1,955 because of the 2026 bands.

• An employee on €28,000
• An employee on €60,000
• A couple with two children
• An executive who moved to Cyprus, with the 50% exemption
• An employee who lets a flat
• A non-domiciled resident living on investments