Cyprus tax calculator
Get an estimate of your take-home pay after taxes using our tax calculator.
Calculate your net salary and income tax in Cyprus
Employees in Cyprus need to pay a percentage of their gross salary to the Cypriot Government. Our Cyprus tax calculator can help you determine your net salary after deducting these taxes. You’ll also find out the euro amount you’ll need to contribute towards the Social Insurance Scheme and General Health System.
Start using our Cyprus tax calculator by entering your expected monthly salary below. Read the FAQs after your results to learn more about the Cyprus tax system and potential tax exemptions you may be eligible for.
Monthly salary in EUR (2,500 - 99,999)
Disclaimer: This tax calculator is for informational and indicative purposes for Cyprus newcomers only, and does not consider all sources of income apart from monthly salary, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Exness does not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors at all times. This is not an official Exness document nor a job offer.
Frequently asked questions
Who is this calculator for?
This calculator may come in handy for those who are looking to relocate to Cyprus and hold their first job here.
What is the minimum monthly salary to be able to relocate to Cyprus?
Based on the current immigration laws, the minimum monthly salary for relocation of foreign nationals is €2,500.
What is social insurance?
Every employee in Cyprus is compulsorily insured under the Social Insurance Scheme. For employed persons, the rate of contribution is 8.3%, which is deducted from the monthly salary with a maximum deduction of €415.42 per month.
All employees that contribute to the Social Insurance are able to receive the below benefits:
What is a "general health system"?
The General Health System (GHS) is a national health system that was implemented in Cyprus in June 2019, also known as GeSY.
It aims to provide affordable and effective medical care to Cyprus residents:
All citizens (permanent and legal residents in Cyprus) can register for and access GeSY.
All expatriates living in Cyprus and holding a Cypriot ID or Alien Card are also entitled to enroll in GeSY.
Citizens can choose their personal doctor, hospital or any other healthcare provider, from the public or private sector.
The chosen healthcare providers must be associated with GeSY.
Hospitals, doctors' surgeries, clinics and pharmacies under GHS can be identified by the GeSY/ ΓεΣΥ signage on display.
The system is run by the Health Insurance Organisation, and is funded by contributions taken from the monthly salary of employees. Contributions are 2.65% for employees.
What is the progressive taxation system in Cyprus?
The income tax is applied to individuals who earn income from Cyprus, regardless whether they are Cyprus residents or not.
A person is considered a resident if:
They are present on Cypriot territory for a period of time exceeding 183 days.
And they’ll be subject to income tax from sources within Cyprus or abroad.
The Cypriot taxable income varies from 0% to 35% depending on the income:
The first €19,500 is tax-free.
Progressive rates will apply for personal taxation up to a percentage of 35%.
Personal deductions apply and are possible through:
Donations to approved charities.
Life insurance premiums.
Medical fund contributions.
Pension plan contributions.
Certain types of income can be taxed at different rates. The personal income tax is imposed on all types of business profits, discounts, pensions, rents, royalties, benefits in kind, and others.
What is chargeable income?
Chargeable income, also known as taxable income, is your total annual income minus all the tax exemptions and tax reliefs you’re entitled to. The exemptions and reliefs can include:
Social Insurance deduction.
National Health System (NHS).
First employment deduction.
Personal life insurance.
What is tax exemption?
Tax exemption is granted for any employment exercised in Cyprus:
By an individual who was a resident outside of Cyprus.
Before the commencement of their first employment in Cyprus.
How is tax exemption calculated?
Tax exemption takes into account your annual gross income from any activity in Cyprus. The percentage of your exemption is applied on that as per the rates below.
Who is qualified for a 50% tax exemption?
Based on the updated Cyprus Income Tax Law, individuals who take up their first employment in Cyprus from 1 January 2022 onwards will be eligible for the 50% tax exemption from their employment income.
However, they must fulfill the following conditions:
The individual has not been a Cyprus tax resident for at least 15 consecutive years prior to the commencement of their first employment in Cyprus.
The annual remuneration from employment in Cyprus must exceed €55,000 (This annual remuneration threshold of €55,000 can be achieved either in the first or second year of employment in Cyprus).
Important: This exemption is available for a maximum period of 17 years, and can be utilized from the year of commencement of employment in Cyprus. If the relevant conditions are not satisfied in a tax year (e.g. annual remuneration is less than €55,000), the exemption will not be granted for that specific tax year.
Who is qualified for a 20% tax exemption?
You can qualify for the 20% tax exemption:
If you’re an employee with a yearly salary of less than €55,000 from any employment in Cyprus.
For individuals who were not tax residents for 3 years before the first employment, the maximum exemption is €8,550.
The tax exemption applies for 7 years, starting from the year after the first employment year.
How is the monthly tax calculated?
The calculation is as below:
Annual gross salary - annual tax discount (if applicable) - annual GeSY - annual social insurance = Annual taxable income.
Then apply the percentage according to the tax scale:
Annual income tax / employment months = your monthly tax.
Is there a case when I don't have to pay monthly tax?
If your chargeable income is lower than €19,500, then no monthly tax will be applied.
How and when is the tax paid?
If your chargeable income is over €19,500, the tax applied on that amount is divided by the remaining months of the year. This way, an equal installment is paid each month.
If in a specific month, you’re entitled to a bonus, then the extra tax figure will be deducted in that specific month. From the next month on, you’ll be deducted the normal tax as per the previous months.
How accurate are the calculations in this calculator?
The calculator is intended as a guide to help you understand the deductions you can expect from your salary when working in Cyprus. Please keep in mind that these results are estimates and are based on the assumption that you will be employed in Cyprus for at least 12 months.
While we strive to use up-to-date values in the calculation, we cannot guarantee their validity. Therefore, we cannot be held responsible for any mistakes or problems that may occur when using this tool.