Free tools · 2026 tax reform
Cyprus tax calculators 2026
Updated for the 2026 Cyprus tax reform: new income tax bands, family deductions, the €68,904 Social Insurance ceiling, 15% corporate tax and 5% SDC on dividends.
Net salary calculator
Family deductions apply if household income is within the limit (€40,000 single; €100,000 for 1–2 children; €150,000 for 3–4; €200,000 for 5+). Leave household income at 0 to use your salary. Estimate only; not tax advice.
Estimated payslip - €40,000 a year
Monthly figures assume 12 salaries. On a 13th salary basis: €2,505 per month.
- Exempt income
- €0
- Family deductions
- €0
- Taxable income
- €35,420
- Effective rate
- 18.6%
Company tax & dividend calculator
15% corporate tax from 2026; 5% SDC on dividends to Cyprus-resident domiciled individuals; 2.65% GHS on dividends. Ignores deemed-distribution rules. Estimate only.
Net dividend to shareholder
€78,498
- Corporate tax (15%)
- €15,000
- Gross dividend
- €85,000
- SDC on dividend (5%)
- €4,250
- GHS on dividend (2.65%)
- €2,253
- Retained in company
- €0
Maternity, paternity & parental leave estimator
Based on the maternity law amendments in force since 1 March 2024 and parental leave changes from 31 March 2025. Benefits are paid by Social Insurance, not your employer.
Estimate on insurable earnings up to the €68,904 ceiling. Actual benefit uses your previous year's contributions and includes basic and supplementary parts. Not legal advice.
Estimated maternity allowance
€9,138
22 weeks × €415 per week
- Compulsory maternity weeks
- 11
- Paternity leave (2 weeks)
- €831
- Parental leave per parent
- 8 weeks
- Parental leave benefit (est.)
- €3,323
Government help for families with children
In simple words: the government gives money to parents to help with the cost of raising children. In September 2026 the President announced a bigger budget of €12.5 million for this, and from January 2027 the rules become more generous - more families will get money, and they will get more of it.
More money per child
- If your family earns up to €22,000 a year, you get 10% more than before
- If your family earns up to €44,000 a year, you get 5% more
- Before, if you earned a little more, you could lose the whole benefit. Now a small pay rise no longer takes it away
- About 17,000 more families (23,500 children) will now qualify
Bigger families can earn more and still qualify
- With 3 children, your family can now earn up to €90,000 a year
- With 4 children, the limit goes up from €69,000 to €100,000
- With 5 or more children, it does not matter what you earn (this has been the rule since 2025)
Help with nursery and school costs
- The government now helps pay nursery fees for children up to 4 years and 4 months old
- Around 2,000 families and 2,800 children are covered
- There is also extra help with school costs and meals for children
How do I get it?
You apply online, using your CYLogin account (the government's login system), on the Welfare Benefits website. If you already received the benefit in 2025, you do not need to apply again - they will check your 2026 entitlement automatically. Just make sure you tell them online if your income or family situation changes. If you are applying for the first time, you have until 31 December of that year. If you are a single parent, there is an extra benefit you can claim too.
Check what my family can getWhat expenses can be deducted from tax in 2026
Deductions reduce the income you are taxed on, so their cash value depends on your marginal rate - a €1,000 deduction saves €200–€350 of tax. The new family deductions (Article 14B) apply from tax year 2026 to Cyprus tax residents whose household income is within the limits.
Deducted automatically from your pay
- Social Insurance - 8.8% of gross salary, up to the €68,904 annual ceiling
- GHS / GESY - 2.65% of gross earnings, up to the €180,000 ceiling
- Life insurance and provident fund contributions - deductible, together with SI and GHS, up to one-fifth of taxable income
- Incapacity insurance premiums - newly deductible from 2026, conditions apply
New family deductions for 2026
- Dependent children - €1,000 for the first child, €1,250 for the second, €1,500 for each further child; doubled for single-parent families. Students up to age 24 count as dependent.
- Rent or mortgage interest - up to €2,000 a year for rent paid, or interest on a loan for your primary residence
- Energy upgrades or an electric vehicle - up to €1,000 a year for energy-saving improvements to your primary residence or the purchase of a new electric vehicle
- Home insurance against natural disasters - newly deductible from 2026
Conditions and income limits
- Household income must be within the limit: €100,000 with up to two children, €150,000 with three or four, €200,000 with five or more, and €40,000 for a qualifying single person
- You must be a Cyprus tax resident and up to date with your tax filings
- Spouses, civil partners and cohabiting partners with common children must consent to mutual disclosure of tax data so family income can be verified
- The new family deductions are additional - they do not reduce the one-fifth cap that applies to insurance premiums, GHS and fund contributions
- Keep receipts and supporting documents; the Tax Department can disallow claims without evidence