Annual Gross Salary
Options
For foreigners starting employment in Cyprus
Affects deduction limits and eligibility
Uses €40,000 income threshold.
New 2026 reform: Tax deductions for dependent children up to age 24
Tax-Deductible Contributions20% CAP
Life insurance, provident fund & health insurance
Max allowed: €3,848/yr
Max: 2% of income (€75/mo)
Max deductible: 7% of insured amount (annual cap applies)
Max: 10% of salary (€375/mo)
Any property (primary, vacation, rental). No income threshold. Max: €42/mo (Single Person)
Various Deductions
Additional deductions (subject to income thresholds)
Up to €2,000 per person (€4,000 for couples) for mortgage interest or rent
€1,000 combined limit for energy upgrades and EV purchases
Combined limit with EV: €1,000/person (€2,000 couples)
Combined limit with Energy: €1,000/person (€2,000 couples)
Pension Income2026
Pension income is NOT subject to Social Insurance or GeSY
Annual amount. Taxed at normal income tax rates.
Annual amount. Choose between special 5% rate or normal income tax.
Annual amount. Choose between special 20% rate or normal income tax.
Monthly Net
€2,990.51
Tax BurdenIncome tax as a percentage of gross salary
8.8%
ContributionsSocial Insurance + GeSY as a percentage of gross salary
11.5%
Mandatory Deductions
| Tax Bracket Distribution | Chargeable Income | Tax Rate | Tax Amount |
|---|---|---|---|
| €0 - €22,000 | €0.00 | 0% | €0.00 |
| €22,001 - €32,000 | €9,999.00 | 20% | €1,999.80 |
| €32,001 - €42,000 | €7,846.50 | 25% | €1,961.63 |
Annual Net Estimate
2026 Reform Impact
Pre-2026
€4,838.50
Net €35,009.00
2026
€3,961.43
Net €35,886.08
Your Annual Savings
+€877.07
€73.09 more per month