Non-dom: Exempts you from 17% SDC on dividends, interest, and rental income for 17 years. 50% exemption: First employment in Cyprus with salary above €55,000 — 50% of salary is tax-free for 17 years. 13th salary: Same annual gross, split across 13 monthly payments instead of 12.
2026 Income Tax Brackets
Income Band
Rate
Tax
Self-employed: Social insurance is 15.6% of income (capped at ~€62,868). GeSY is 2.65% with no cap. Register with Social Insurance within 1 month. Provisional tax payments due quarterly.
Flat 5%: Foreign pension recipients pay a flat 5% on amounts above €3,420/year. Must be a Cyprus tax resident (183+ days). One of the most tax-friendly setups for retirees in Europe.
Disclaimer: Estimates based on 2026 Cyprus tax rates. Not tax advice. Consult a qualified Cyprus tax advisor for your specific situation.