Cyprus Income Tax Calculator 2026 — PIT + Non-Dom + IP Box

Cyprus uses five progressive PIT brackets in 2026: 0% on the first €19,500; 20% on €19,501–€28,000; 25% on €28,001–€36,300; 30% on €36,301–€60,000; and 35% on income above €60,000. The generous €19,500 zero-rate band makes Cyprus one of the most attractive EU tax regimes for employees and freelancers.

The Non-Domiciled (Non-Dom) regime exempts individuals from Special Defence Contribution (SDC) on dividends (30%) and interest (17%) for 17 years from the date they become Cyprus tax residents. To qualify you must not have been a Cyprus tax resident for at least 17 of the 20 years preceding the year of first Cyprus tax residency. Non-Doms still pay normal PIT on employment or trading income; the exemption only covers passive dividend and interest income.

The Cyprus IP Box (Intellectual Property regime) allows an 80% notional deduction on qualifying IP income — royalties, licensing fees, and gains from IP asset disposal. This reduces the effective tax rate on qualifying IP profits to just 2.5% (20% of net IP income × 12.5% effective rate, but standard PIT applies for individuals). For self-employed individuals developing software or patents, this can dramatically reduce taxable income from IP activities.

Cyprus Social Insurance is 8.8% employee + 8.8% employer, calculated on gross earnings up to an annual ceiling (€62,868 in 2026). The General Healthcare System (GHS/GESY) adds 2.65% for employees and 2.90% for employers. Social Insurance contributions are not deductible for PIT purposes under the standard calculation. Self-employed persons pay both employee and employer portions (17.6%) plus GHS.

Yes. Cyprus offers a unique "60-day rule" — spending at least 60 days in Cyprus (and not 183 days elsewhere, and having some business connection such as employment or a company) is sufficient for tax residency. This is far more flexible than the standard 183-day rule used by most countries and makes Cyprus popular for digital nomads, entrepreneurs, and HNW individuals seeking to benefit from the Non-Dom regime.