Cyprus Income Tax Explained
A clear guide to how income tax works in Cyprus — who pays it, how much, and what deductions you can claim.
Key Facts at a Glance
2026 Tax Bands
Cyprus uses a progressive tax system — you only pay the higher rate on the portion of income that falls within each band.
| Income Range | Tax Rate | Max Tax in Band |
|---|---|---|
| €0 — €22,000 | 0% | €0 |
| €22,001 — €32,000 | 20% | €2,000 |
| €32,001 — €42,000 | 25% | €2,500 |
| €42,001 — €72,000 | 30% | €9,000 |
| Over €72,000 | 35% | No limit |
Available Deductions
Child Allowance
Deducted from taxable income. Doubled for single parents.
- • 1st child: €1,000
- • 2nd child: €1,250
- • 3rd and subsequent: €1,500 each
Housing Costs
Up to €2,000 deduction for rent paid or mortgage interest on primary residence.
Green Energy & EV
Up to €1,000 deduction for solar panels, energy efficiency upgrades, or purchase of an electric vehicle.
How to File
Employees with income below the €22,000 tax-free threshold file using Form IR 1 (Employee). Due by 31 March each year. Self-employed persons and those with other income sources file using Form IR 1 (Self-employed). Tax payments are typically made in instalments throughout the year.
Filing is done electronically through the TaxisNet portal at JCC Smart.
Remember: Income tax is only part of the picture
In addition to income tax, employees pay social insurance (8.8%, capped at €68,904/year) and GESY health contributions (2.65%, capped at €180,000/year). Combined, these add about 11.45% to your deductions before income tax is even calculated.
Calculate your total take-home pay