Cyprus tax system explained
Cyprus taxes a salary with a progressive income-tax scale. There is no separate personal tax credit, because the 0% band is the allowance. On top of income tax, employees pay Social Insurance and GHS (GESY) contributions.
Based on the 2026 tax year.
Income tax
Each slice of annual income is taxed at its own rate. From 2026 the tax-free threshold rises and the higher bands widen under the 2026 reform; earlier years use the previous scale.
| Income band | Rate |
|---|---|
| Up to €22,000.00 | 0% |
| €22,000.00 – €32,000.00 | 20% |
| €32,000.00 – €42,000.00 | 25% |
| €42,000.00 – €72,000.00 | 30% |
| Above €72,000.00 | 35% |
Social security
Two contributions are withheld from gross pay: Social Insurance, which stops at the annual insurable-emoluments ceiling, and the General Healthcare System (GHS/GESY) contribution, which has a higher ceiling. The employer pays the same Social Insurance rate and a slightly higher GHS rate.
Employee
- Social Insurance8.8%(capped at €68,904.00)
- General Healthcare System (GHS)2.65%(capped at €180,000.00)
Employer
- Social Insurance8.8%(capped at €68,904.00)
- General Healthcare System (GHS)2.9%(capped at €180,000.00)
Benefits & allowances
Cyprus pays salaries monthly. A 13th salary is treated as a one-off bonus and is taxed and insured like normal pay.
Minimum wage
The statutory minimum gross monthly wage is €1,088.00.
These figures are indicative estimates based on current legislation and do not constitute tax or financial advice.