Cyprus Tax Calculator 2026

You searched “Cyprus tax calculator” because someone told you Cyprus has 0% tax on dividends, and you want to know if that’s real. Or marketing. The honest answer: non-doms pay 2.65% GHS (healthcare), capped at €4,770 per year. Not zero. But for a founder drawing €100,000 in dividends from a German company, the difference between €26,400 at home and €2,650 in Cyprus is real enough to warrant the move. The January 2026 tax reform also changed a few things: the personal tax-free threshold rose from €19,500 to €22,000, and SDC on dividends for domiciled residents dropped from 17% to 5%.

This page has three tools: a dividend tax comparison for founders and investors (non-dom regime), an income tax calculator for employees and directors drawing salary (2026 bands), and a corporate tax comparison for company owners. Rates are sourced from the Cyprus Tax Department and updated for the 2026 reform. The tools estimate; a licensed Cypriot tax advisor gives the binding numbers for your structure.

Non-Dom Dividend Tax: What You Actually Pay

As a Cyprus non-domiciled tax resident, dividends from any source attract 2.65% GHS (General Healthcare System contribution), capped at €4,770 per year. No Special Defence Contribution (SDC) applies. No personal income tax applies to dividend income. That is what the “0% dividend tax” shorthand means: zero SDC, zero income tax, but 2.65% GHS up to the cap.

Use the calculator below to compare your current dividend tax with what you would pay in Cyprus.

The 2026 reform changed the SDC picture for domiciled Cyprus residents. They previously paid 17% SDC on dividends; from 1 January 2026, that rate is 5%. The non-dom exemption itself did not change. What the reform confirms: even domiciled residents now face a much lower rate, which makes Cyprus a more attractive comparison even for those who do not qualify for non-dom status.

The GHS cap matters at higher income levels. On €500,000 in dividends, you would pay 2.65% = €13,250. The cap cuts that to €4,770. Effective rate: 0.95%. At €1 million, the tax stays €4,770. Effective rate: 0.48%.

Cyprus Income Tax Bands 2026

Cyprus income tax applies to employment income, self-employment profits, and business income. Dividends and interest are not subject to income tax for non-dom residents. The 2026 reform raised the tax-free threshold from €19,500 to €22,000.

On top of income tax, employees pay GESY (2.65% of gross salary) and Social Insurance (8.8% on insurable earnings up to ~€62,868 per year). Use the calculator below for a full breakdown.

A director drawing salary rather than dividends is subject to these bands. Many Cyprus company structures use a combination: a modest salary (within the zero-rate band) and larger dividend distributions to minimise overall tax. This is a structural decision requiring advice from a licensed Cypriot tax advisor. The optimal split depends on personal circumstances, treaty provisions, and whether the director is non-dom.

Cyprus Corporate Tax 2026

Cyprus Corporate Income Tax (CIT) is 15% on taxable profits, effective from 1 January 2026 (raised from 12.5% by Law 18(I)/2024). This is one of the lowest headline corporate rates in the EU.

The table shows company-level CIT rates only. The calculator below adds personal dividend tax on full extraction, which is what a founder-shareholder actually pays end-to-end.

Two features make Cyprus corporate tax more distinctive than the headline rate alone. Capital gains on the disposal of shares, bonds, and other securities are 0%. There is no capital gains tax on securities in Cyprus. And dividends received by a Cyprus holding company from qualifying subsidiaries may qualify for the participation exemption, meaning 0% tax on dividends received at the holding level.

For founders using a Cyprus holding company above an operating structure, the effective tax on exit (selling the subsidiary shares) is zero, regardless of whether the holding company is non-dom-owned.

How the Non-Dom Regime Works

Non-domicile (non-dom) status in Cyprus is a legal status under the Special Defence Contribution Law. It exempts you from SDC on dividends and interest for up to 17 years from the tax year you first become a Cyprus tax resident.

Who qualifies. You are automatically non-dom if you were not born in Cyprus and have not been a Cyprus tax resident for 17 consecutive years immediately before becoming resident. There is no application to file for non-dom itself; it flows from meeting the conditions. You do, however, need to become a Cyprus tax resident.

How to become a Cyprus tax resident. Two routes:

183-day rule. Spend more than 183 days per calendar year in Cyprus. This is the standard global rule.

60-day rule (since 2017). Spend at least 60 days in Cyprus per year; do not spend more than 183 days in any single other country in the same year; be not tax resident anywhere else; maintain a permanent home in Cyprus (owned or rented); and have a business presence, employment in Cyprus, or be a director of a Cyprus-tax-resident company. This route suits founders and investors who travel extensively.

Once you are tax resident, non-dom status applies automatically if the domicile conditions are met. Your dividend income from that point pays 2.65% GHS only, up to the annual cap.

Duration. The exemption lasts until you have been a Cyprus tax resident for 17 consecutive years. At that point, you become domiciled by election and SDC at 5% applies. Most relocating founders plan for the 17-year horizon and reassess closer to expiry.

For founders building a company before relocation, the sequence matters: relocate first, establish Cyprus tax residency, then draw dividends. Drawing large dividends while still a non-resident of Cyprus does not attract the non-dom benefit. Those dividends are taxed in your home country instead.

A Cyprus residency permit is not the same as tax residency. You can hold a residence permit without being tax resident (if you spend fewer than 183 days, or do not meet the 60-day conditions). The calculators above assume full Cyprus tax residency.

What This Page Does Not Cover

Exit taxes in your home country. Germany’s Wegzugsteuer, France’s exit tax, and similar rules in Austria and the Netherlands can create a large tax liability when you cease being a tax resident. This applies before you benefit from Cyprus non-dom. A specialist in cross-border restructuring should map this out before you relocate.

Double Tax Treaty (DTT) provisions. Cyprus has 65+ DTTs. Some DTTs override Cyprus domestic law, either positively (lower withholding) or negatively (limiting which income qualifies for exemption). UK and German founders in particular should review the relevant DTT before assuming non-dom treatment applies to all their income streams.

Self-employed vs. director. The income calculator above covers employees and directors drawing salary. Self-employed individuals pay Social Insurance at 16.6% (both employee and employer sides), not 8.8%. The bands are identical.

Company dividend extraction timing. Deciding when to extract profits as dividends, versus retaining in the company, versus taking salary, is a structural decision affecting total tax over multiple years, not a single-year calculation. This page shows annual rates, not lifetime optimisation.

For a free consultation on your specific situation, use the form above to speak with a licensed Cypriot tax advisor within 48 hours.

Sources

• Cyprus Tax Department — Tax Reform 2026 — official 2026 reform overview including new income tax bands and SDC rate change
• Special Defence Contribution Law 118(I)/2002 — legal basis for SDC and non-dom exemption on dividends
• Cyprus Tax Department — Individuals — current income tax rates and brackets
• General Healthcare System (GESY) — Contributions — 2.65% employee contribution rate and annual cap
• Social Insurance Services — Contribution Rates 2026 — 8.8% employee rate and insurable earnings ceiling
• Companies Law Cap. 113 — legal basis for Cyprus corporate structure