Tax exemption calculator

New residents who start a job in Cyprus can exempt 20%, 25% or 50% of their salary from income tax for up to 17 years. Enter a few facts or your full work history; the calculator checks every condition and shows the saving year by year.

20%up to €8,550 a year, 7 years

50%salary above €55,000, 17 years

25%returnees starting 2025–2030

Rules checked October 2026

Cyprus job startsGross salary a year, €Years not tax resident in Cyprus beforeconsecutive tax years right before the startYears employed abroad beforeby a non-Cyprus employer, consecutive

More options3% growth, 84 of 84 months abroad

Salary growth a year, %Months worked abroad in the last 84full time, non-Cyprus employer

For the 25% returnee ruleI was Cyprus tax resident at some point beforeI hold a university degree

Children2026 child deduction

FamilySingle parent

Best option for you

50% exemption

€323,757

estimated income tax saved over 17 years, 2024–2040

Have an adviser check it

50% exemption

Qualifies

50% of salary, 17 years
Saves about €323,757

Employment started on or after 1 January 2022
Not Cyprus tax resident for 15 consecutive years before (you: 20)
Salary above €55,000 in the first 12 months (you: €90,000)

20% exemption

Qualifies

20% of salary up to €8,550, 7 years
Saves about €20,948

Employment started after 26 July 2022 (7-year rules)
Not Cyprus tax resident for 3 consecutive years before (you: 20)
Employed abroad by a non-Cyprus employer for 3 consecutive years before (you: 10)

25% returnee exemption

Does not qualify

25% of salary up to €25,000, 7 years

Employment starts between 2025 and 2030
Not Cyprus tax resident for the 7 tax years before (you: 20)
Was Cyprus tax resident at some point before those 7 years
Worked full time abroad for a non-Cyprus employer 36 of the last 84 months (you: 84)
Salary above €30,000 in the first 12 months (you: €90,000)

Duration reported as 7 years in total; some sources say 6 years after the start year.

50% exemption, year by year

17 tax years

2425262728293031323334353637383940

used this year left no exemption

Year	Salary	Exempt	Tax without	Tax with	Saving
2024	€90,000	€45,000	€18,499	€3,911	€14,588
2025	€92,700	€46,350	€19,419	€4,294	€15,124
2026	€95,481	€47,741	€18,711	€3,787	€14,924
2027	€98,345	€49,173	€19,686	€4,126	€15,561
2028	€101,296	€50,648	€20,692	€4,475	€16,217
2029	€104,335	€52,168	€21,727	€4,902	€16,826
2030	€107,465	€53,733	€22,794	€5,346	€17,447
2031	€110,689	€55,345	€23,892	€5,804	€18,088
2032	€114,009	€57,005	€25,023	€6,276	€18,748
2033	€117,430	€58,715	€26,189	€6,762	€19,427
2034	€120,952	€60,476	€27,389	€7,262	€20,127
2035	€124,581	€62,291	€28,626	€7,778	€20,848
2036	€128,318	€64,159	€29,899	€8,309	€21,590
2037	€132,168	€66,084	€31,211	€8,855	€22,355
2038	€136,133	€68,067	€32,562	€9,419	€23,143
2039	€140,217	€70,109	€33,953	€9,999	€23,954
2040	€144,424	€72,212	€35,387	€10,596	€24,790

Income tax only: social insurance (8.8%) and GESY (2.65%) are still due on the full salary. Years before 2026 use the 2025 bands; future years use 2026 bands and your growth rate.

How it works

1
Your dates decide the rules
The start date of your Cyprus job picks the rule set: before or after 26 July 2022, 30 June 2023 and 1 January 2025.
2
Each condition is checked
Years not resident, years employed abroad, salary thresholds and the 84-month rule for returnees.
3
The best option wins
The exemptions cannot be combined, so we rank them by total tax saved.
4
Saving per year
Income tax with and without the exemption, with 2026 bands and child deductions.

Questions

Does the exemption reduce social insurance and GESY?

No. It reduces income tax only; contributions are due on the full salary.

What if my salary drops below €55,000 one year?

You lose the 50% exemption for that year only. It returns in later years above the threshold, if you were above it in year one or two.

I started in Cyprus between 2016 and 2021. Can I use the new 50%?

Possibly. Transitional rules apply; the calculator marks this as 'may qualify' and an adviser confirms.

Is this tax advice?

No. It is a model of the published rules, checked October 2026. A licensed tax adviser confirms your case.

Sources and limits

A model of published rules, not tax advice. Rules checked October 2026; we confirm them for your case before you act.

Tax exemption calculator

50% exemption

50% exemption

20% exemption

25% returnee exemption

50% exemption, year by year

How it works

Your dates decide the rules

Each condition is checked

The best option wins

Saving per year

Questions

Sources and limits

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