Cyprus Salary Calculator
2026 changed Cyprus. A tax reform enacted on 22 December 2025 raised the tax-free threshold from €19,500 to €22,000, widened every band so the top 35% rate now starts at €72,001 instead of €60,001, and introduced deductions for families that did not exist before. On top of income tax sit social insurance of 8.8% and GESY of 2.65% — and they stop at different ceilings, which is where most estimates go wrong.
Example: €30,000 gross in Cyprus
A 13-payment employee salary, 2026 rates — computed by the Saldora API.
Net annual
€25,652
Net monthly
€1,973
Income tax
€913
Effective rate
14.5%
How salary tax works in Cyprus
- New for 2026: first €22,000 tax-free, then 20% / 25% / 30%, with 35% only above €72,000
- Social insurance 8.8%, capped at €68,904 of insurable earnings
- GESY 2.65% — capped much higher, at €180,000, so it keeps rising after social insurance stops
- Family deduction of €1,000 / €1,250 / €1,500 per child, means-tested on household income
- Employer cost 15.4%, of which the 2% Social Cohesion Fund is uncapped
- 50% of salary exempt for 17 years on first employment above €55,000
Someone taking up first employment in Cyprus on more than €55,000, who has not been a Cyprus tax resident for the previous 15 years, can exempt 50% of their salary from income tax for 17 years. A 20% exemption capped at €8,550 exists as an alternative. Social insurance and GESY are still charged on the full salary either way.
Cyprus salary tax — frequently asked questions
What changed in Cyprus for 2026?
The tax reform enacted on 22 December 2025 and effective 1 January 2026 raised the tax-free threshold from €19,500 to €22,000 and widened the bands: 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above that — where the 35% rate previously began at €60,001. It also added deductions for children, housing costs, green upgrades and home insurance. If a source shows you the old €19,500 threshold, it has not been updated.
How much is deducted from a Cyprus salary?
Social insurance of 8.8% and GESY (the health system) of 2.65%, so 11.45% in total. The catch is that they stop at different points: social insurance is capped at €68,904 of insurable earnings, while GESY runs to €180,000. Both are deductible from taxable income, though the law caps all such deductions at one fifth of your income.
Do children reduce my Cyprus tax?
Yes, since 2026. The deduction is €1,000 for the first child, €1,250 for the second and €1,500 for the third and each one after it, taken off your taxable income. It is means-tested on total household income and withdrawn in full — not tapered — above the limit, which widens with the size of the family: €100,000 for one or two children, €150,000 for three or four, €200,000 for five or more.
What does an employee cost their employer in Cyprus?
About 15.4% on top of gross: social insurance 8.8%, redundancy fund 1.2%, industrial training 0.5%, social cohesion 2% and GESY 2.9%. Only the first three are capped at €68,904, and the Social Cohesion Fund is not capped at all — so a high earner's employer cost keeps climbing after the employee's own contributions have stopped.
Can it calculate self-employed tax in Cyprus?
Yes — switch to Freelancer. The self-employed pay 16.6% social insurance plus 4% GESY, with no employer share. Because that is 20.6%, it runs past the one-fifth cap on deductible contributions, so part of what you pay is not deductible. VAT registration is compulsory above €15,600 of turnover in any rolling 12 months, at 19%.
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Estimates based on publicly available 2026 tax rules for Cyprus. For informational purposes only — not tax advice. Consult a qualified tax advisor for your specific situation.