Residents and non-residents who earn income within Cyprus are subject to the country's income tax system. If you're an employee, self-employed, or a retiree, understanding your tax obligations and leveraging tools like this income tax calculator can help you predict and manage your finances more effectively.

In Cyprus, tax residents are subject to income tax on their worldwide income, while non-residents are taxed only on income sourced within Cyprus. To determine tax residency, Cyprus employs both the 183-day rule and the 60-day rule. Under the 183-day rule, individuals who spend more than 183 days in Cyprus during a calendar year are considered tax residents. Alternatively, the 60-day rule applies to those who spend at least 60 days in Cyprus, provided they meet additional criteria, such as not being tax residents in any other country and having ties to Cyprus, like employment or ownership of property.

Cyprus employs a progressive income tax system with rates ranging from 0% to 35%. The first €19,500 of income is tax-free, followed by a 20% tax rate for income between €19,501 and €28,000. Higher income brackets are taxed at 25%, 30%, and 35% for income exceeding €60,000.

Several deductions and exemptions can significantly reduce your taxable income in Cyprus. For instance, contributions to social insurance, medical funds, pension schemes, and life insurance premiums are deductible, subject to specific limits. Additionally, foreign pension income above €3,420 is taxed at a reduced rate of 5%, although taxpayers can opt to be taxed under the standard income tax rates.

Certain income types, such as dividend income, passive interest, and rental income, may also be subject to the Special Contribution for Defence (SDC). This additional tax applies to both individuals and companies that are tax residents and domiciled in Cyprus, further emphasizing the need for accurate tax planning.

Our Cyprus Income Tax Calculator is designed to simplify the process of calculating your tax liability. By entering your details, you can quickly determine how much tax you owe. This tool is particularly useful for comparing different income scenarios, planning for potential tax liabilities, and ensuring compliance with Cyprus's tax regulations.

Accurate tax calculations are essential for effective financial management. Whether you're a resident or non-resident, our income tax calculator can help you navigate Cyprus's tax system with ease, ensuring you meet your obligations while optimizing your tax position.