Calculate your net salary, effective tax rate, Non-Dom savings, and 17-year dividend tax impact. Rates confirmed for the current tax year.
Rates applied: income tax (0–35%), Social Insurance 8.8% (cap €68,904), 2.65% (cap €180,000). The €22,000 tax-free threshold applies from the December 2025 tax reform. IR1 filing deadline: 31 July. See the Cyprus Tax Calendar.
Income tax by bracket
▼Self-employed Social Insurance: 15.6% (capped €68,904/yr). : 4.0% (capped €180,000/yr). Income tax at the same progressive brackets as employees. Source: Cyprus Social Insurance Services.
Income tax by bracket
▼Corporate tax 15% following the December 2025 reform. : 5% (domiciled) or 0% () on dividends. 2.65%. and IP Box not included here. Not yet incorporated? See Cyprus Companies. For payroll, VAT, and compliance, see Accounting Services. Non-resident directors may need Fiduciary Services.
Pension: First €5,000 tax-free. Above €5,000: 5% flat rate or standard progressive brackets, whichever the taxpayer elects annually. GESY 2.65% on total pension.
Rental income: 20% standard expense deduction, then progressive income tax on net rental. on rental income abolished from January 2026. 2.65% on gross rental income. For rental income reporting and VAT, see Accounting Services. Filing deadlines: Cyprus Tax Calendar.
Source: Cyprus Department of Inland Revenue.
Shows the annual saving under status vs remaining a domiciled Cyprus resident. SDC on dividends: 5% (domiciled) vs 0% (Non-Dom). SDC on interest: 17% (domiciled) vs 0% (Non-Dom). To establish residency, see Tax Residency. Source: Cyprus SDC Law.
Cumulative SDC saving by year
| Year | Progress | Annual | Cumulative |
|---|
Extension decision: €250,000 for 5 additional years
After 17 years, Non-Dom treatment can be extended for up to two further five-year periods at €250,000 each, paid to the Tax Department as a lump sum in lieu of SDC contributions.
Personal income tax brackets (current year)
| Taxable income | Rate | Tax on band | Cumulative tax |
|---|---|---|---|
| €0 to €22,000 | 0% | €0 | €0 |
| €22,001 to €32,000 | 20% | €2,000 | €2,000 |
| €32,001 to €42,000 | 25% | €2,500 | €4,500 |
| €42,001 to €72,000 | 30% | €9,000 | €13,500 |
| Above €72,000 | 35% | On excess | €13,500 + 35% above €72,000 |
Social insurance and GESY rates
| Category | Rate | Annual cap | Notes |
|---|---|---|---|
| Employee Social Insurance | 8.8% | €68,904 | On gross salary |
| Employee GESY | 2.65% | €180,000 | On gross salary |
| Self-employed Social Insurance | 15.6% | €68,904 | Covers both employee and employer portions |
| Self-employed GESY | 4.0% | €180,000 | Higher than employed rate |
| Employer Social Insurance | 10.5% (capped) + 2% (no cap) | €68,904 for SI portion | 2% Social Cohesion Fund has no cap |
| Employer GESY | 2.9% | €180,000 | On gross salary |
| GESY on dividends (Non-Dom) | 2.65% | €4,770/yr max | Only charge on dividends for Non-Dom residents |
Special income types
| Income type | Tax treatment | GESY | SDC |
|---|---|---|---|
| Dividends (Non-Dom) | 0% income tax | 2.65%, max €4,770/yr | 0% (exempt) |
| Dividends (Domiciled) | 0% income tax | 2.65% | 5% |
| Interest (Non-Dom) | 0% income tax | 2.65% | 0% (exempt) |
| Interest (Domiciled) | 0% income tax | 2.65% | 17% |
| Foreign pension (above €5,000) | 5% flat or progressive (taxpayer elects) | 2.65% | 0% |
| Rental income | Progressive 0–35% on 80% of gross | 2.65% on gross | 0% (abolished Jan 2026) |
| Cryptocurrency gains | 8% flat (income tax) | 2.65% | 0% |
| Capital gains on securities | 0% | 0% | 0% |
Key terms explained
SDC (Special Defence Contribution)
A Cyprus-specific withholding tax on passive income (dividends, interest). Non-Dom residents are fully exempt. For domiciled residents: 5% on dividends, 17% on interest from the current tax year.
GESY (General Healthcare System)
Cyprus's national health insurance levy. Applies to all income types at 2.65% (employee/personal) or 4.0% (self-employed). Annual cap of €180,000 of insured income.
Non-Dom Status
A tax classification available to new Cyprus tax residents who were not domiciled in Cyprus during the last 17 of 20 years. Provides full SDC exemption for up to 17 years. Free to obtain, no minimum income. See how Cyprus compares: Cyprus vs Greece. Why Cyprus? Full residency guide.
50% Employment Exemption
Available to first-time employees in Cyprus earning above €55,000 who were not Cyprus tax residents for at least 15 consecutive years. Halves taxable employment income for up to 17 years. DPCA advises on eligibility.
NID (Notional Interest Deduction)
Allows Cyprus companies to deduct a notional interest on new equity injected since 2015. Can reduce the effective corporate tax rate from 15% to approximately 3% in optimal structures. Read more.
60-Day Tax Residency Rule
An alternative to the 183-day rule. Requires at least 60 days in Cyprus, no other country for 183+ days, a permanent home, and a business or employment connection. EU citizens satisfying the home condition typically hold a Yellow Slip; non-EU citizens a Pink Slip. Enables Non-Dom and full Cyprus tax residency with minimal presence.
Need a precise calculation for your situation?
DPCA prepares Cyprus tax returns and advises on Non-Dom setup, NID, and the 50% exemption. Get in touch for a full review of your specific position.
