Cyprus salary calculator, 2026

Gross to net in Cyprus, month by month

At 2026 rates, with 12 salaries a year, no provident fund and no exemption. “Paid out” is what lands in your account when the payslip takes only social insurance and GESY, the income tax column is what's then still owed with the return, and the last column is what you actually keep.

The national minimum wage, which covers most full-time employees, is €1,088 gross a month from 1 January 2026, or €979 for the first six months with a new employer, and it pays no income tax at all. Income tax starts at about €2,070.39 gross a month, the point where chargeable income passes the €22,000 tax-free band, so on €2,500 the employer spends €2,885, you're paid €2,213.75 and keep €2,137.67 once the €913 of tax for the year is settled.

Net to gross: the salary to ask for

The other way round, for a net amount after every tax, here's the gross that produces it and what the employer then spends on it.

Annual salaries, with the expat exemptions

The 20% exemption caps the exempt slice at €8,550, so even at the top rate it's worth about €249.38 a month, and the 50% one only applies to pay over €55,000, which is why that column reads n/a until then and then jumps.

The income tax your payslip may not take

By law a Cyprus employer withholds income tax every month through PAYE and pays it over to the Tax Department. Some payslips still take only social insurance and GESY, and then €2,500 gross becomes €2,213.75 in the account while the year's €913 of income tax waits, and it's you who owes it. The higher the salary the bigger that bill gets: on €3,500 a month it's €3,297.75 for the year.

Whatever PAYE didn't take is a final balancing payment with your return, normally due by 31 July of the next year, so the 2026 bill falls due on 31 July 2027 (the date gets extended by decree in some years, the 2025 returns run to 31 October 2026), and paying late adds a 5% penalty and interest. From the 2026 tax year every Cyprus tax resident aged 25 to 70 on 31 December files a return whatever they earned, so there's no skipping it either.

The calculator splits that out for you. With the PAYE box off it shows what's paid in, the tax still owed and how much to put aside each month so July doesn't hurt, tick it if your payslip already has an income tax line.

How Cyprus income tax works in 2026

Cyprus taxes individuals on a progressive scale, and only the slice of income inside each band is taxed at that band's rate. The 2026 tax reform (voted on 22 December 2025 and published in the Government Gazette on 31 December 2025) lifted the tax-free band and widened the middle of the scale, so most salaries pay less than they did in 2025.

The bands apply to chargeable income, not to gross pay. Chargeable income is your salary minus any exempt income and minus the contributions you are allowed to deduct, which is why the calculator shows that line separately.

What comes out of a Cyprus payslip

• Social insurance is 8.8% of gross earnings, up to the 2026 insurable-earnings ceiling of €68,904 (€5,742 a month), and nothing past it. Your employer pays its own 8.8% on top, up to the same ceiling.
• GESY, the General Healthcare System, takes 2.65%, capped at €180,000 of total annual income across all your sources combined. Each employer still deducts it, and the Health Insurance Organisation refunds anything over the cap after the year ends. Employers add 2.9% on top, the self-employed pay 4%.
• A provident fund costs whatever your scheme sets, if your employer runs one at all. Many do not. Contributions are deductible up to 10% of the pay that isn't exempt.
• Income tax, worked out on what's left after the allowable deductions. The employer should withhold it monthly through PAYE, and if it doesn't, it lands on your annual return.

The one-fifth rule

Social insurance, GESY, provident and pension contributions and life insurance premiums are deductible, but together they can't come to more than one fifth of your taxable income, which is pay less any exempt part. Social insurance and GESY alone are 11.45% of gross, under the cap, so on an ordinary salary it only bites once a big provident fund is added. The 50% exemption is the exception: it halves the base, so between €55,000 and about €82,500 part of your social insurance and GESY gets no tax relief. The calculator applies both limits.

The 2026 family deductions

The reform added three deductions that come off chargeable income on top of everything above, outside the one-fifth cap, for tax residents whose family income is at or under a limit: €40,000 for a single person, €100,000 for a family with up to two children, €150,000 with three or four and €200,000 with five or more. A family means a spouse, civil partner or partner you have a child with, plus the children at home, and its income is everyone's gross income from every source, leaving out child benefit, student grants and students' pay. A euro over the limit loses all three.

• Children: €1,000 for the first dependent child, €1,250 for the second and €1,500 for each one after, per parent, doubled for a single parent living with the children. A child counts until 18, longer while at school, in the National Guard or a full-time student up to 24.
• Home: up to €2,000 each of rent or home-loan interest on your main home. From 1 July 2026 rent has to go by bank transfer, card or another electronic payment to count.
• Green: up to €1,000 each of insulation, new windows, solar PV and batteries, a new electric car (not leased) or a charger, for a home or car you own, paid from 1 January 2026.

Two parents on €50,000 and €30,000 with two children and €800 a month of rent: the €50,000 earner takes €2,250 for the children and €2,000 of the rent, which cuts their income tax from €5,182.50 to €4,006.25. They can be claimed through PAYE on form T.D.59 or on the return, both partners have to file and agree to share their tax data, and a partner who files late loses them. Open “Children, rent and green upgrades” in the calculator to apply yours.

What the employer pays on top

Five contributions sit on top of the gross salary. Social insurance and GESY are the employer's own share, paid next to the employee's, and the other three are funds only employers pay into.

Below the ceiling that adds up to 15.4%, which is how €2,500 gross becomes €2,885 a month for the employer. Above €68,904 a year (€1,325 a week, €5,742 a month) social insurance, redundancy and training stop growing, so a €120,000 salary carries proportionally less on top than a €40,000 one. Social Insurance Services sets that ceiling every December.

Out of the gross the employer withholds the employee's 8.8% social insurance, 2.65% GESY and the income tax, all of it already inside the salary, and the 15.4% above comes on top. The Central Holiday Fund adds another 8% unless the Ministry of Labour has exempted the employer for granting leave directly, and since it counts as earnings, social insurance and GESY on both sides are charged on it too. A 13th salary is a custom and not a legal duty, though regulations voted in July 2025 extend it to hotel staff, and it's ordinary pay, taxed and charged like any other month, so set the calculator to 13 payments to budget for it.

The expat exemptions

Three of them now, and only one can apply: once you're granted the 50% the other two are closed to you for good, even in a year it gives nothing. The 2026 reform left the big one alone, and a separate law in March 2026 added a third.

• 50% exemption (article 8(23A)). Half of your remuneration is exempt for 17 years, if the job is your first in Cyprus and for the 15 consecutive years before it you were neither tax resident nor employed here. Pay has to pass €55,000 in your first or second year to qualify, and after that the exemption applies only in the years it's above €55,000.
• 25% repatriation exemption (article 8(21B), branded Minds in Cyprus). The lower of 25% of remuneration and €25,000 a year, for 7 years, once in a lifetime, for people coming home. You must have been a Cyprus tax resident at some point, then away for at least 7 consecutive tax years, and earn over €30,000 here in the first 12 months and in every year you claim. You also need 36 months of full-time work for a foreign employer in the 84 months before you start if you hold a degree, or all 84 if you don't. Gazetted 6 March 2026, backdated to 1 January 2025, open to jobs starting up to 31 December 2030.
• 20% exemption (article 8(21A)). The lower of 20% of remuneration and €8,550 a year, for 7 years from the year after you start. It's for a first job in Cyprus, with no paid work here in the previous 15 years, starting after 26 July 2022 and by the end of 2027, after at least 3 consecutive years as a non-resident working abroad for a non-Cyprus employer, with no more than four months between the two jobs. One firm reported the March 2026 law closed it, reading the bill, but the gazetted text only bars holding it together with the 25% exemption.

These are personal reliefs with strict conditions and real paperwork. Have an accountant confirm your eligibility before you plan around the number.

Am I a Cyprus tax resident?

Two tests, either one is enough. The 183-day rule: more than 183 days physically in Cyprus in a calendar year. The 60-day rule: at least 60 days in Cyprus, no more than 183 days in any other single country, Cyprus business, employment or a directorship of a Cyprus tax-resident company that isn't ended during the year, and a home in Cyprus you own or rent. From 2026 it no longer matters whether another country also treats you as resident.

Separately, non-domiciled status exempts you from the Special Contribution for Defence on dividends and interest for 17 years, and from 2026 it can be extended by up to two five-year periods at €250,000 each. Domiciled residents pay 5% on dividends paid out of 2026 profits onwards. Both sit outside this calculator.

What this calculator does not include

It models a plain employment. Of the 2026 deductions it leaves out the €500 for natural-disaster home insurance and green spending carried forward from earlier years, and it assumes you're a Cyprus tax resident. It also leaves out benefits in kind, other income, the Special Contribution for Defence, and the special regimes for pensions and stock options. Every one of those can move your final tax bill. On the employer side it leaves out benefits in kind, your own provident contributions if you run a scheme, and recruitment, equipment and a desk to put the person at.