How much you pay in Cyprus depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: Progressive 0-35% (first €19.5k tax-free). Social contributions: 8.8% + 2.65% GESY health.
New residents earning over €55k can get a 50% income exemption for 17 years. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Same brackets on profit. Social contributions: ~16.6% self-employed + GESY.
The 60-day tax-residency rule and non-dom status make Cyprus unusually friendly to mobile professionals. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 15% (raised from 12.5% in the 2026 reform). Dividends 0% for non-domiciled residents (only 2.65% GESY); 17% for domiciled.
Non-dom status is the whole story: 17 years of dividend income at effectively 2.65%. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Cyprus (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Cyprus tax advisor confirm the current rules for your specific case.