Taxes
Cyprus — Tax: Personal Income Tax
Cyprus applies progressive personal income tax with rates ranging from 0% (tax-free allowance) to 35% on the highest income bracket. Residents are taxed on worldwide income; non-residents on Cyprus-sourced income only. The tax-free threshold is EUR 22,000 (as of tax year 2026).
Why this matters
Understanding tax brackets and residency status determines personal tax liability and planning opportunities for remote workers and investors.
Key facts
- Tax-free income threshold: EUR 22,000 (as of 2026 tax year, increased from EUR 19,500) (gov.cy/mof/en/)
- Progressive tax brackets: 0% up to EUR 22,000; 20% on income EUR 22,001–EUR 28,000; 25% on EUR 28,001–EUR 55,000; 30% on EUR 55,001–EUR 100,000; 35% on income above EUR 100,000
- Cyprus residents taxed on worldwide income; non-residents taxed only on Cyprus-sourced income (employment, rental, business) (gov.cy/mof/en/)
- Residency for tax purposes typically defined by spending 183+ days in Cyprus during tax year
- Rental income is taxable; landlords must declare all rental earnings (gov.cy/mof/en/)
- Social insurance contributions (typically 8.8% employee, employer contributes) are deductible before income tax calculation (gov.cy/mof/en/)
- Self-employed and business income subject to personal income tax plus corporate tax if registered as company
Residency Status Impact
Cyprus residents pay tax on worldwide income. Non-residents pay only on Cyprus-sourced income. Residency status for tax purposes is determined by spending 183 or more days in Cyprus during the tax year or having a permanent home available.
Deductions & Credits
Social insurance contributions, mortgage interest (under specific conditions), and certain other expenses may be deductible. Professional advice recommended for detailed planning.