What is the personal income tax system in Cyprus?
Cyprus operates a progressive personal income tax system for tax residents, taxing worldwide income. Non-residents are taxed only on Cyprus-sourced income.
Income Tax Rates (2025):
Up to €19,500: 0%
€19,501 – €28,000: 20%
€28,001 – €36,300: 25%
€36,301 – €60,000: 30%
Over €60,000: 35%
Tax Residency Criteria:
An individual is considered a tax resident of Cyprus if they meet either of the following conditions:
Spend more than 183 days in Cyprus during the tax year.
Spend more than 60 days in Cyprus, are not a tax resident elsewhere, have a permanent home in Cyprus, and carry on business in Cyprus.
Special Tax Regimes:
Foreign Pension Income: Taxed at 5% on amounts exceeding €3,420.
First Employment in Cyprus: Eligible individuals can benefit from a 50% tax exemption on remuneration for up to 17 years, provided certain conditions are met.
Social Insurance Contributions:
Employee: 8.3% of gross salary.
Employer: 8.3% of gross salary.
State Contribution: 5.2% of gross salary.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article