Methodology - Cyprus (2026)

Educational model - not a Cyprus Tax Department assessment, not a tax return, not tax advice.

Employee

Progressive income tax under the 2026 reform (approved 22 December 2025, in force 1 January 2026): 0% to 22,000; 20% to 32,000; 25% to 42,000; 30% to 72,000; 35% above (annual income in EUR).
Social Insurance: employee 8.8% and employer 8.8% on insurable earnings up to the maximum of EUR 68,904 per year for 2026.
General Healthcare System (GHS / GeSY): employee 2.65% and employer 2.90% on income up to the cap of EUR 180,000 per year.
Out of scope: the new 2026 family and household reliefs, the 20% / EUR 8,550 and 50% / EUR 55,000 expatriate exemptions, pension and provident-fund deductions, the 13th salary, the Social Cohesion Fund and other employer-only funds.

Net business profit = revenue - expenses, taxed at the same 2026 reform bands (0% to 22,000; 20% / 25% / 30% / 35%) as an employee.
Social Insurance for the self-employed is 16.6% (since 1 January 2024), modelled here on net profit capped at EUR 68,904 per year. The statutory base is deemed (notional) insurable income by occupational category, not actual profit - a documented simplification.
GHS / GeSY for the self-employed is 4.0% on income up to EUR 180,000 per year.
Out of scope: the deemed-income occupational tables, capital allowances, losses, provisional-tax timing, VAT, and pension and life-insurance deductions.