How We Calculate Taxes
We believe in full transparency about how our calculators work. This page explains our methodology, tax legislation sources, and the assumptions underlying each calculation.
Rates Last Updated: August 2026
All calculators reflect the 2026 Cyprus tax year, incorporating changes from the 2026 national budget including the income tax-free threshold increase to €22,000, increased child deductions, and updated social insurance caps.
Tax Legislation References
Income Tax Law
N.118(I)/2002, as amended
Progressive income tax rates, deductions for children, housing, and green energy as per 2026 budget amendments
Social Insurance Law
N.59(I)/2010, as amended
Contribution rates for employees, employers, and self-employed persons; annual insurable earnings cap
GHS (GESY) Law
N.89(I)/2001, as amended
General Healthcare System contribution rates and applicability to earned and passive income
SDC Law
N.117(I)/2002, as amended
Special Defence Contribution rates on dividends, interest, and rental income; non-dom exemptions
Capital Gains Tax Law
N.52(I)/1980, as amended
20% CGT on disposal of immovable property; lifetime exemptions for primary residence, general, and agricultural land
VAT Law
N.95(I)/2000, as amended
Standard and reduced VAT rates; registration threshold for taxable persons
Corporate Tax
N.118(I)/2002, Art. 5
15% corporate income tax rate; R&D super-deduction (120%); loss carry-forward provisions
Key Assumptions
- 1All calculations use 2026 tax rates as legislatively enacted.
- 2Income tax calculations apply Cyprus tax resident rates to worldwide income.
- 3Social insurance calculations assume the standard insurable earnings cap (€68,904/year for 2026).
- 4GESY contributions are capped at €180,000/year aggregate across all income sources.
- 5SDC calculations assume Cyprus tax domicile status unless non-dom is explicitly selected.
- 6Capital gains tax calculations treat exemptions as lifetime limits applied independently.
- 7Corporate tax calculations use a flat 15% rate with available deductions.
- 8Calculators do not account for foreign tax credits, double taxation treaties, or individual circumstances.
Limitations
Our calculators provide estimates only based on current legislation. They do not constitute tax advice. Individual circumstances (foreign tax credits, double taxation treaties, specific deductions, professional exemptions, etc.) may materially affect your actual tax liability. Always consult a qualified tax professional for advice specific to your situation.