Cyprus Personal Income Tax 2026: Brackets, Exemptions, and How Non-Dom Changes Everything
Most people relocating to Cyprus for tax reasons focus on dividends and corporate structures. But understanding Cyprus personal income tax is equally important, especially for founders who pay themselves a salary, directors receiving fees, or remote workers employed by a foreign company. Cyprus updated its income tax bands in December 2025, raising the tax-free threshold from EUR 19,500 to EUR 22,000. That single change reduced the tax bill for virtually every salaried resident on the island. The 2026 Progressive Tax Brackets Cyprus applies income tax progressively. Each rate only applies to the portion of income that falls within a given band. The full 2026 schedule is as follows: EUR 0 to EUR 22,000: 0% (fully tax-free) EUR 22,001 to EUR 32,000: 20% EUR 32,001 to EUR 42,000: 25% EUR 42,001 to EUR 72,000: 30% Above EUR 72,000: 35% These rates apply to employment income, director fees, rental income in Cyprus, and trading income. What they do not cover is...