Cyprus Personal Income Tax Guide 2026

Cyprus personal income tax uses a progressive PAYE system with rates from 0% to 35%. The first EUR 19,500 of employment income is tax-free. Non-domiciled residents benefit from a 0% rate on dividend and interest income through the non-dom regime. The system is administered by the Tax Department of Cyprus under the Ministry of Finance.

Cyprus PAYE (Pay As You Earn) is administered by the Tax Department of Cyprus (Φορολογικό Τμήμα) under the Ministry of Finance. The tax year runs from 1 January to 31 December. Residents are taxed on worldwide income; non-residents are taxed only on Cyprus-source income. For related guidance, see our Tax Residency Guide →, Corporate Tax Guide →, and Investment Income Guide →.

PAYE Tax Brackets 2026

Cyprus applies a progressive annual bracket system for employment and pension income:

0% — on income up to EUR 19,500 per year
20% — on income from EUR 19,501 to EUR 28,000
25% — on income from EUR 28,001 to EUR 36,300
30% — on income from EUR 36,301 to EUR 60,000
35% — on income exceeding EUR 60,000 per year

The EUR 19,500 threshold is a statutory deduction available to all employed individuals. A taxpayer earning EUR 50,000 per year pays approximately EUR 8,142 in PAYE — an effective rate of ~16.3%.

Non-Domiciled (Non-Dom) Regime

Cyprus introduced a non-domiciled (non-dom) status in 2015 that is extremely attractive for expatriates and international investors. A non-dom resident benefits from:

0% tax on dividend income worldwide
0% tax on interest income worldwide
0% tax on capital gains from the sale of shares and securities worldwide

Non-dom status applies to individuals who are Cyprus tax residents but not domiciled in Cyprus. A person is domiciled in Cyprus if they were born to Cypriot parents or have been a Cyprus resident for 17 out of the last 20 tax years (the 17-year rule). This makes Cyprus one of the most attractive EU jurisdictions for high-net-worth individuals relocating to the EU.

60-Day Residency Rule

Cyprus offers a 60-day rule for non-domiciled individuals to become tax residents without the traditional 183-day requirement. To qualify:

Stay in Cyprus for at least 60 days in the tax year
Not be a tax resident of any other country for more than 183 days
Have a permanent residence in Cyprus (owned or rented)
Carry on business or be employed in Cyprus (or be a director of a Cyprus company)

This rule has made Cyprus a premier jurisdiction for digital nomads, remote workers, and international business owners seeking EU tax residency with minimal physical presence.

Deductions and Reliefs

Social insurance contributions: Fully deductible from employment income
GHS (GesY) contributions: Fully deductible
Life insurance premiums: Deductible up to 7% of insured amount
Medical insurance: Deductible for the taxpayer and dependents
Pension contributions: Deductible up to specific limits for approved funds
Donations: Tax deductible for approved charitable organisations
Rental income: 20% deemed deduction for wear and tear (no receipts needed)

Tax Filing

Personal tax returns are filed electronically through Taxisnet, the Cyprus Tax Department's online portal. The annual deadline is 31 July following the end of the tax year. Employers must register employees with the Tax Department and withhold PAYE monthly. Self-employed individuals must file annual returns and pay advance tax quarterly based on the previous year's liability.