Cyprus personal income tax bands 2026, and the wrong number going round
The five bands from the amending law, and the figure half the internet got wrong.
Last verified 2026-10-22Next review 2027-01-222 official sources
Whether Cyprus works for you depends on how you earnTalk it through
Cyprus personal income tax bands 2026 run from nil up to EUR 22,000 to 35% above EUR 72,000, set by Law 244(I)/2025 and applying from tax year 2026. The tax-free threshold rose by EUR 2,500 and a great many posts round it to the wrong number.
Cyprus personal income tax bands 2026
| Taxable income | Rate |
|---|---|
| up to EUR 22,000 | 0% |
| EUR 22,001 to 32,000 | 20% |
| EUR 32,001 to 42,000 | 25% |
| EUR 42,001 to 72,000 | 30% |
| over EUR 72,000 | 35% |
They are progressive, so the 35% applies only to the slice above EUR 72,000, not to the whole income. Someone on EUR 80,000 pays nothing on the first EUR 22,000 and 35% on EUR 8,000.
The number that is wrong
The old threshold was EUR 19,500 and it became EUR 22,000. A figure of EUR 22,500 is repeated on a lot of advisory pages and in a lot of forum posts. It is not in the law. If a calculator you are using starts at EUR 22,500, it is working from a secondary source that got it wrong, and everything downstream of that is out by EUR 500 of free band.
What these bands do not touch
Dividends are exempt from income tax for every resident. From 2026 all interest income of individuals is exempt too. Gains on securities other than Cyprus property-related shares are exempt. Crypto disposals are taxed separately at a flat 8%, outside these bands entirely.
Which is why the bands matter less to a founder than they look. If you draw dividends rather than salary, the table above barely applies to you.
What else lands on the same income
Social insurance at 8.8% for an employee, 16.6% for a self-employed person, up to a ceiling of EUR 68,904 for 2026. Health contributions at 2.65% for an employee and 4% for the self-employed, capped once annual income reaches EUR 180,000. Those are contributions rather than tax, and they are collected whatever the bands say.
For someone new to Cyprus there is also the 50% exemption on employment pay above EUR 55,000, which runs 17 tax years and comes off the top before the bands are applied.
The bands as enacted are in Law 244(I)/2025, section 24, which replaces the Income Tax Law's Second Schedule.
Common questions
- What are the Cyprus income tax bands for 2026?
- Nil up to EUR 22,000, 20% to EUR 32,000, 25% to EUR 42,000, 30% to EUR 72,000 and 35% above that.
- Did the tax-free threshold change?
- Yes. It rose from EUR 19,500 to EUR 22,000 for tax year 2026, under Law 244(I)/2025.
- Is the threshold EUR 22,500?
- No. That figure circulates widely and is wrong. The amending law says EUR 22,000.
Whether Cyprus works for you depends on how you earn
Where you live is only half of it. We can walk through your position with you, including the cases where Cyprus tax residency does not give the result people expect. This is general information, not tax advice for your circumstances.
Sources
Every legal, fee and procedural statement on this page is taken from the sources below and was checked on 2026-10-22. Where they change, this page changes.
- Law 244(I)/2025 amending the Income Tax Law, Official Gazette No. 5070 of 31 December 2025 (cylaw.org) — 15% corporate tax, the 2026 60-day rule, personal tax bands and the 8% crypto rate, from 1 January 2026
- Income Tax Law 118(I)/2002, consolidated text (cylaw.org) — Tax residency (section 2), dividend exemption (section 8(20)), IP Box (section 9(1)(κ)) and rates
Related
This page is general information about Cyprus rules as published by the authorities named above. It is not legal or tax advice for your circumstances, and immigration outcomes depend on your nationality, documents and individual case. See our legal and tax information disclaimer.