Cyprus Income Tax for Individuals and the Self-Employed

This skill covers Cyprus personal income tax for resident individuals: employees, the self-employed, landlords and pensioners. Figures are for tax year 2026. The 2026 tax reform (Law 244(I)/2025 and the amending laws passed with it) applies from tax year 2026 and changes the bands, the filing duty, the personal deductions, the Special Defence Contribution (SDC) on rent and dividends, and the accounts and deadline rules for the self-employed. For tax year 2025 and earlier, use the official 2025 return guide, not this skill.

Section 1: Quick Reference

Field	Value
Country	Cyprus (Republic of Cyprus)
Tax	Personal income tax (Φόρος Εισοδήματος)
Currency	EUR only
Tax year	Calendar year (1 January to 31 December)
Primary legislation	Income Tax Law N.118(I)/2002, as amended (from 2026 by Law 244(I)/2025)
Supporting legislation	Special Defence Contribution Law N.117(I)/2002; Assessment and Collection of Taxes Law (amended by Law 243(I)/2025)
Tax authority	Cyprus Tax Department (Τμήμα Φορολογίας), Ministry of Finance
Filing portal	Tax For All (TFA) only, from tax year 2026; TAXISnet was used for tax years 2017 to 2025
Return for tax year 2026	Filed during 2027; deadline in the deadlines table in Section 5.12

Tax Rate Brackets: tax year 2026 (2026 reform)

The scale applies to chargeable income (taxable income after exemptions and deductions), per person. Cyprus taxes spouses separately. The 0% band is the tax-free amount; there is no separate personal allowance.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
0% band: chargeable income up to	EUR 22,000	"0% από €0 μέχρι €22.000"
Rate on that band	0%	"0% από €0 μέχρι €22.000"
20% band: from	EUR 22,001	"20% από €22.001 μέχρι €32.000"
20% band: to	EUR 32,000	"20% από €22.001 μέχρι €32.000"
Rate on that band	20%	"20% από €22.001 μέχρι €32.000"
25% band: from	EUR 32,001	"25% από €32.001 μέχρι €42.000"
25% band: to	EUR 42,000	"25% από €32.001 μέχρι €42.000"
Rate on that band	25%	"25% από €32.001 μέχρι €42.000"
30% band: from	EUR 42,001	"30% από €42.001 μέχρι €72.000"
30% band: to	EUR 72,000	"30% από €42.001 μέχρι €72.000"
Rate on that band	30%	"30% από €42.001 μέχρι €72.000"
35% band: from	EUR 72,001	"35% από €72.001 και άνω"
Top rate, on everything from that amount up	35%	"35% από €72.001 και άνω"
Tax-free amount up to tax year 2025 (not for 2026)	EUR 19,500	"έχει αυξηθεί από €19.500 σε €22.000 με εφαρμογή από το φορολογικό έτος 2026"

The Tax Department's return page prints the cumulative tax at the top of each 2026 band:

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/en/documents/forologiki-dilosi-eisodimatos-atomoy/
Cumulative tax at the top of the 20% band	EUR 2,000	"32.000 20% 2.000 2.000"
Cumulative tax at the top of the 25% band	EUR 4,500	"42.000 25% 2.500 4.500"
Cumulative tax at the top of the 30% band	EUR 13,500	"72.000 30% 9.000 13.500"
Deadline for the tax year 2025 return (extended by decree; not the 2026 deadline)	31 October 2026	"For the current year (tax year 2025) the deadline for submitting a tax return is October 31, 2026"

Above the top of the 30% band, tax is the cumulative figure for the 30% band plus the top rate on the excess. The page writes it as "(Income-72.000)*35%+13.500".

Conservative Defaults

Ambiguity	Default
Unknown tax year	Ask. Use this skill only for tax year 2026 income; send tax year 2025 work to the 2025 return guide
Unknown residency	Treat as resident only if the 183-day rule or the 60-day rule is met (Section 5.2); otherwise STOP and confirm
Unknown domicile status	Treat as Cyprus-domiciled (SDC applies). Non-dom status is a fact that needs evidence (Section 5.8)
Unknown business-use share (vehicle, phone, home)	No deduction
Unknown expense category	Not deductible
Unknown self-employed insurable income	Refer to the Social Insurance Services category table; do not assert an amount
Unknown VAT registration	Treat as registered if taxable supplies passed the registration threshold in Section 5.10
Unknown whether expense is entertainment or private	Not deductible
Unknown family income for the new personal deductions	Do not grant the child, housing or green deductions (Section 5.6)

Section 2: Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable: bank statement for the full tax year in CSV, PDF or pasted text, plus confirmation of (1) Cyprus tax residency (183-day or 60-day rule), (2) domicile status (domiciled or non-dom, which decides SDC), (3) employment status (employee under PAYE, self-employed, or both), and (4) age at 31 December of the tax year (it decides the filing duty, Section 5.12).

Recommended: all sales invoices, purchase invoices and receipts, Social Insurance and GHS payment records, the prior year return or assessment, VAT registration status, occupational category (for self-employed Social Insurance), and, for the new personal deductions, the gross income of the spouse or partner and the number of dependent children.

Ideal: complete income and expenditure account, asset register with capital allowances schedule, provisional (temporary) tax payment confirmations, employer emoluments certificates, reviewed or audited accounts where the turnover thresholds in Section 5.12 require them, and evidence for any exemption claim (Section 5.7).

Refusal if minimum is missing: SOFT WARN. No bank statement at all = hard stop. Bank statement without invoices = proceed with reviewer warning: "This return was produced from bank statement alone. The reviewer must verify that all deductions claimed are supported by valid documentation and that the wholly-and-exclusively test is met, and must confirm residency and domicile status."

Refusal Catalogue

• R-CY-1: Residency unknown. "Cyprus tax residents are taxed on worldwide income; non-residents only on Cyprus-source income. This skill cannot proceed without confirming residency under the 183-day rule or the 60-day rule. Please confirm before proceeding."
• R-CY-2: Companies and partnerships. "This skill covers individuals and sole-trader self-employed only. Companies (corporate income tax, whose rate changed from tax year 2026) and partnerships file separate returns. Escalate to a Cyprus-licensed accountant."
• R-CY-3: Non-resident and dual-resident income. "Non-resident and dual-resident taxation, and double-tax-treaty relief, have different rules. Out of scope. Escalate to a Cyprus-licensed accountant."
• R-CY-4: Capital gains and property disposals. "Cyprus Capital Gains Tax on disposals of immovable property situated in Cyprus (and related shares) is a separate tax. Out of scope. Escalate to a Cyprus-licensed accountant."
• R-CY-5: Arrears and enforcement. "Client has outstanding tax or Social Insurance arrears or is subject to Tax Department or Social Insurance Services enforcement. From 2026 the Tax Department may also seal business premises for repeated non-filing or large debts. Do not advise. Escalate to a Cyprus-licensed accountant immediately."
• R-CY-6: VAT return requested. "This skill covers personal income tax only. For Cyprus VAT, use the cyprus-vat-return skill."
• R-CY-7: Non-dom and SDC structuring. "Non-domicile status and Special Defence Contribution planning require confirmation of the 17-of-20-year deemed-domicile test and the individual's domicile of origin. Use the cy-non-dom skill and flag for a Cyprus-licensed accountant; do not assert non-dom status without evidence."
• R-CY-8: Crypto-asset disposals, approved share option plans, AIF carried interest. "These are taxed at special rates under their own rules (Section 5.3). Flag for a Cyprus-licensed accountant."

Section 3: Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to the rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement. Greek and transliterated terms are included because Cyprus statements often appear in Greek or mixed Greek and English. If multiple patterns match, use the most specific. If none match, fall through to Section 5.

3.1 Income Patterns (Credits on Bank Statement)

Pattern	Line	Treatment	Notes
Client name + TRANSFER, DEPOSIT, EMBASMA, PAYMENT	Self-employment income	Business income	If VAT-registered, extract the net amount (excluding VAT at the rate in Section 5.10)
FEES, PROFESSIONAL FEES, CONSULTANCY, AMOIVI	Self-employment income	Business income	Professional fees, typical for self-employed
STRIPE PAYOUT, STRIPE TRANSFER	Self-employment income	Business income	Platform payout; match to underlying invoices
PAYPAL PAYOUT, PAYPAL TRANSFER	Self-employment income	Business income	Platform payout; verify against invoices
WISE PAYOUT, REVOLUT PAYOUT	Self-employment income	Business income	Check if business or personal
UPWORK, FIVERR, TOPTAL	Self-employment income	Business income	Freelance platform; net of commission
MISTHOS, SALARY, PAYROLL, EMPLOYER [name]	Employment income (PAYE)	Employment income	NOT self-employment; emoluments under PAYE
ENOIKIO, RENT RECEIVED	Rental income	Rental income	Income tax and GHS; no SDC on rent from 2026 (Section 5.3)
TOKOS, INTEREST RECEIVED	Investment income	EXEMPT from income tax	SDC if resident and domiciled; GHS (Section 5.8)
MERISMA, DIVIDEND	Investment income	EXEMPT from income tax	SDC if resident and domiciled; GHS (Section 5.8)
TAX REFUND, EPISTROFI FOROU	EXCLUDE	Not income	Tax refund from prior year
GOVERNMENT GRANT, EPIDOMA	Check nature	Capital grants EXCLUDE; revenue grants = income	Confirm grant nature

3.2 Expense Patterns (Debits): Fully Deductible (Self-Employment)

Pattern	Category	Treatment	Notes
OFFICE RENT, ENOIKIO GRAFEIOU	Office rent	Deductible	Dedicated business premises. From 1 July 2026 rent must be paid by bank transfer, card or other electronic means (Section 5.3)
PROFESSIONAL INDEMNITY, PI INSURANCE	Professional insurance	Deductible
ACCOUNTANT, AUDITOR, BOOKKEEP, LOGISTIS	Accountancy and audit fees	Deductible
LAWYER, LEGAL, DIKIGOROS (business)	Legal fees	Deductible	Must be business-related
STATIONERY, OFFICE SUPPLIES	Office supplies	Deductible
MARKETING, GOOGLE ADS, META ADS, FACEBOOK ADS	Marketing and advertising	Deductible
TRAINING, CPD, COURSE, SEMINAR, CONFERENCE	Training	Deductible	Must relate to current business
PROFESSIONAL BODY, ICPAC SUBSCRIPTION	Professional subscriptions	Deductible
BANK CHARGE, MAINTENANCE FEE, SPEXODA	Bank charges	Deductible	Business account only
STRIPE FEE, PAYPAL FEE, TRANSACTION FEE	Payment processing fees	Deductible
DOMAIN, HOSTING, CLOUDFLARE, AWS	IT infrastructure	Deductible	If capital, use capital allowances

3.3 Expense Patterns (Debits): SaaS and Software

Pattern	Category	Treatment	Notes
GOOGLE WORKSPACE, MICROSOFT, M365	Software subscription	Deductible	Recurring subscription = operating expense
ADOBE, CANVA, FIGMA, NOTION, SLACK, ZOOM	Software subscription	Deductible
ANTHROPIC, OPENAI, GITHUB, ATLASSIAN, DROPBOX	Software subscription	Deductible
SOFTWARE LICENCE (perpetual, high value)	Capital item	Capital allowance	Capitalise per wear-and-tear schedule

3.4 Expense Patterns (Debits): Utilities (may need apportionment)

Pattern	Category	Tier	Notes
EAC, AHK, ELECTRICITY, ILEKTRISMOS	Electricity	T2 if home office	Full if dedicated office; proportional if home
WATER BOARD, YDREFSI	Water	T2 if home office	Proportional if home
CYTA, PRIMETEL, EPIC, CABLENET	Telecoms and broadband	T2	Business use portion only; no deduction if mixed and unconfirmed

3.5 Expense Patterns (Debits): Travel

Pattern	Category	Treatment	Notes
RYANAIR, WIZZ AIR, AEGEAN, CYPRUS AIRWAYS, EASYJET	Flights	Deductible if business travel	Must be wholly business purpose
HOTEL, BOOKING.COM, AIRBNB	Accommodation	Deductible if business travel
BOLT, TAXI, UBER	Local transport	Deductible if business purpose
FUEL, PETROLINA, EKO, PETROL	Vehicle fuel	T2: business share only	Requires mileage log
PARKING	Parking	T2: business share only

3.6 Expense Patterns (Debits): NOT Deductible

Pattern	Category	Treatment	Notes
RESTAURANT, DINNER, LUNCH, ENTERTAINMENT, CLIENT MEAL	Entertainment	NOT deductible by default	Private or non-business; flag if a documented business purpose exists
PERSONAL, GROCERIES, SUPERMARKET, ALPHAMEGA, LIDL	Personal expenses	NOT deductible	Private living costs
FINE, PENALTY, PROSTIMO, PARKING FINE	Fines and penalties	NOT deductible	Public policy
INCOME TAX, FOROS, TAX PAYMENT	Tax payments	NOT deductible	Income tax cannot reduce income
DRAWINGS, PERSONAL WITHDRAWAL, ATM (personal)	Drawings	NOT deductible	Not an expense

3.7 Expense Patterns (Debits): Capital Items (Capital Allowances)

Pattern	Category	Annual Rate	Notes
LAPTOP, COMPUTER, MACBOOK, DESKTOP	Computer hardware	See 5.4 [RESEARCH GAP: reviewer to confirm the wear-and-tear rate]	Capital allowance, not expense
PRINTER, SCANNER, COPIER	Office equipment	See 5.4 [RESEARCH GAP: reviewer to confirm]	Capital allowance
FURNITURE, DESK, CHAIR	Furniture and fittings	See 5.4 [RESEARCH GAP: reviewer to confirm]	Capital allowance
VEHICLE, CAR (business)	Motor vehicle	See 5.4 [RESEARCH GAP: reviewer to confirm]	Business share only

3.8 Exclusions, Social Insurance, and Tax Credits (Neither Income nor Expense)

Pattern	Treatment	Notes
INTERNAL TRANSFER, OWN ACCOUNT, BETWEEN ACCOUNTS	EXCLUDE	Own-account transfer
LOAN REPAYMENT, PERSONAL LOAN	EXCLUDE	Loan principal movement
SOCIAL INSURANCE, KOINONIKES ASFALISEIS	Deduction within the one-fifth cap	Deductible against income, NOT a business expense (Section 5.6)
GHS, GESY, GENIKO SYSTIMA YGEIAS	Deduction within the one-fifth cap	Deductible against income (Section 5.6)
VAT PAYMENT, FPA	EXCLUDE	VAT liability payment, not expense
PROVISIONAL TAX, TEMPORARY TAX, PROSORINI FORO	Credit against final liability	Not an expense

3.9 Cyprus Banks: Statement Format Reference

Bank	Common Patterns	Notes
Bank of Cyprus	EMBASMA, METAFORA, CHREOSI, KARTA	PDF or CSV; often Greek and English; date DD/MM/YYYY
Hellenic Bank	PAYMENT, TRANSFER, DD, FEE	PDF or CSV; counterparty in description
Eurobank Cyprus	TRANSFER, DIRECT DEBIT, CHARGE	PDF; private and business
Astrobank / Alpha Bank Cyprus	METAFORA, PLIROMI, SPEXODA	PDF; mixed-language descriptions
Revolut Business	PAYMENT, TRANSFER, CARD PAYMENT	CSV; clean counterparty names
Wise Business	TRANSFER, CONVERSION, FEE	CSV; multi-currency; use EUR amounts

Section 4: Worked Examples

Amounts in the bank lines below are hypothetical.

Example 1: Client Payment (VAT-registered self-employed)

Input line: 15/03/2026 ; BANK OF CYPRUS EMBASMA ; ANDREOU TRADING LTD ; PLIROMI INV-2026-003 ; +1,190.00 ; EUR

Reasoning: client payment for services. The self-employed person is VAT-registered, so the receipt includes VAT at the standard rate in Section 5.10. The net amount is business income. The VAT part is a liability to the Tax Department and is excluded from income.

Classification: self-employment income = the net amount. VAT excluded.

Example 2: SaaS Subscription (Fully Deductible)

Input line: 01/04/2026 ; HELLENIC BANK DD ; ADOBE SYSTEMS IRELAND ; CREATIVE CLOUD APR ; -29.99 ; EUR

Reasoning: monthly SaaS subscription, recurring, wholly business. Deductible as an operating expense. For a VAT-registered person, the amount net of recoverable input VAT is the expense.

Classification: deductible expense (net of recoverable VAT where registered).

Example 3: Entertainment (Private)

Input line: 22/04/2026 ; BANK OF CYPRUS KARTA ; OPSO RESTAURANT ; CLIENT DINNER ; -85.00 ; EUR

Reasoning: client meals are treated as private by default and fail the wholly-and-exclusively test unless a business purpose is documented. Flag for the reviewer if a documented business-entertainment policy exists.

Classification: NOT deductible by default.

Example 4: Social Insurance and GHS Payment (Self-Employed)

Input line: 10/01/2026 ; BANK OF CYPRUS DD ; SOCIAL INSURANCE SERVICES ; Q4 CONTRIBUTION ; -2,490.00 ; EUR

Reasoning: self-employed Social Insurance and GHS contributions are deducted from income within the one-fifth cap (Section 5.6), NOT as a business operating expense. Record separately.

Classification: contribution deduction (within the one-fifth cap), not a business expense.

Example 5: Tax on chargeable income (hypothetical, tax year 2026)

Input: Cyprus resident self-employed person; chargeable income after all deductions of EUR 50,000 (hypothetical).

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
Hypothetical chargeable income	EUR 50,000	Hypothetical; bands from the table in Section 1
Tax: the 20% band in full, the 25% band in full, then the 30% rate on the part above EUR 42,000	EUR 6,900	Our arithmetic; case A in the test suite

The 0% band carries no tax. The result matches the return page's cumulative figure at the top of the 25% band plus the 30% rate on the excess.

Example 6: Foreign Pension Income (special mode, hypothetical)

Input line: 05/02/2026 ; EUROBANK CYPRUS EMBASMA ; UK PENSION PROVIDER ; MONTHLY PENSION ; +1,500.00 ; EUR

Reasoning: a pension for services rendered abroad may be taxed at the special rate in Section 5.3 on the amount above the annual threshold there, OR at the normal scale. The election is made each year.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%A6%CF%8C%CF%81%CE%BF%CF%82-%CE%95%CE%B9%CF%83%CE%BF%CE%B4%CE%AE%CE%BC%CE%B1%CF%84%CE%BF%CF%82.pdf
Hypothetical annual foreign pension	EUR 18,000	Hypothetical
Special-mode tax on that pension: the special rate on the amount above the threshold	EUR 650	Our arithmetic; case D in the test suite

Classification: flag for reviewer to confirm the annual election. Present both methods and compare with the normal scale.

Section 5: Rules

5.1 The Wholly and Exclusively Test

• Wholly and exclusively test: an expense is deductible only if incurred wholly and exclusively in the production of income. Mixed-use expenses must be apportioned on a reasonable, documented basis. [Legacy rule, kept; no saved official page was found that prints the wording, so treat it as the working standard and confirm with the reviewer.]

5.2 Residency and Scope of Charge

Source: the Tax Department page https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/ and the reform presentation https://www.gov.cy/media/sites/167/2026/05/%CE%A6%CE%BF%CF%81%CE%BF%CE%BB%CE%BF%CE%B3%CE%B9%CE%BA%CE%AE-%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-2026-%CF%86%CF%85%CF%83%CE%B9%CE%BA%CE%AC-%CF%80%CF%81%CF%8C%CF%83%CF%89%CF%80%CE%B1-11.05.2026.pdf

• Worldwide or source: Cyprus tax residents are taxed on worldwide income; non-residents only on income arising in Cyprus.
• 183-day rule: an individual is resident for a tax year if they stay in Cyprus for one or more periods exceeding 183 days in total in that year. More than 183 days, not 183 exactly.
• 60-day rule: an individual who does not meet the 183-day rule is resident if ALL of these hold in the tax year: (a) at least 60 days in Cyprus; AND (b) does not reside for more than 183 days in any other single country; AND (c) carries on a business in Cyprus, and/or is employed in Cyprus (not necessarily by a Cypriot employer), and/or holds an office in a Cyprus tax resident company; AND (d) keeps a permanent home in Cyprus, owned or rented. If the business, employment or office ends during the year, the person is not resident for that year under this rule; the reform presentation says the condition must hold until 31 December of the tax year.
• 2026 change to the 60-day rule: the reform removed the condition that the person must not be tax resident in another country. Being tax resident elsewhere no longer blocks the 60-day rule; the 183-days-in-another-country test in (b) still applies.

5.3 Income Determination

Income type	Income tax treatment (tax year 2026)
Employment emoluments	Taxable at the scale; PAYE withheld by the employer
Self-employment profit	Taxable at the scale
Dividends	NOT taxable for income tax; SDC if resident and domiciled (Section 5.8); GHS
Interest	NOT taxable for income tax (the 2026 law exempts all interest income of individuals); SDC if resident and domiciled (Section 5.8); GHS
Rental income	Taxable at the scale, with the flat expenses deduction for buildings in the TD59A table (Section 5.6) plus capital allowances and interest. SDC on rent is abolished from 1 January 2026. GHS still applies
Pension for services rendered abroad	Normal scale, OR the special rate on the amount above the annual threshold in the table below (yearly election)
Gains on disposal of crypto-assets (new article 20E, from 2026)	Special rate in the table below; crypto losses set off only against crypto gains of the same year, with no carry forward; mined crypto is taxed normally
Benefit from approved employee share option or share award plans (new article 20D)	Special rate in the table below, taxed separately and not added to other income
AIF carried interest and UCITS performance fees (articles 20b and 20c)	Optional special rate with a minimum tax, elected each year (TD59A table, Section 5.6)
Gains on disposal of shares and other titles	Not settled on any saved official page. The Income Tax Law presentation names article 8(22) (an exemption subsection) only for its change from 1 January 2031, under which redeeming a unit or share in a collective investment scheme "ΔΕΝ συνιστά διάθεση τίτλου (εδάφιο (22))". Do not assert an exemption or a charge; refer

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%A6%CF%8C%CF%81%CE%BF%CF%82-%CE%95%CE%B9%CF%83%CE%BF%CE%B4%CE%AE%CE%BC%CE%B1%CF%84%CE%BF%CF%82.pdf
Special rate on a foreign-services pension, on the amount above the threshold	5%	"συντελεστή ύψους 5%, από €3.420 σε €5.000"
Annual threshold from 2026	EUR 5,000	"συντελεστή ύψους 5%, από €3.420 σε €5.000"
Threshold up to tax year 2025 (not for 2026)	EUR 3,420	"συντελεστή ύψους 5%, από €3.420 σε €5.000"
Special rate on crypto-asset disposal gains	8%	"Τα κέρδος υπόκεινται σε φορολογία με συντελεστή ύψους 8%"
Special rate on approved share option or share award benefits	8%	"υπόκειται σε φορολογία με συντελεστή ύψους 8%, και δεν προστίθεται σε οποιοδήποτε άλλο εισόδημα"
Cap on share option benefits taxed at the special rate, per rolling ten years	EUR 1,000,000	"του ενός εκατομμυρίου ευρώ (€1.000.000)"
Deduction for donations to approved cultural institutions, only to the extent it creates no loss	EUR 50,000	"μέχρι €50.000 αναφορικά με δωρεές/συνεισφορές σε πολιτιστικά ιδρύματα"

Rent and GHS from 2026 (FAQs, https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf): income tax on rent is paid through provisional tax in two instalments, on 31 July and 31 December of the tax year. A tenant that is a legal person (a company) must still withhold GHS from the rent. Where no GHS was withheld, the landlord pays it by self-assessment in two instalments on the same dates. From 1 July 2026, rent for property in Cyprus may be collected only by bank transfer, debit or credit card, or another recognised electronic means; cash and cheques are not allowed.

5.4 Capital Allowances (Wear and Tear)

• Capital allowances treatment: capital items are relieved through wear-and-tear (capital) allowances, not as outright deductions.

[RESEARCH GAP: reviewer to confirm] The wear-and-tear percentages by asset class (computers, plant and machinery, motor vehicles, furniture, commercial buildings) were not found on any saved Tax Department page and must be taken from the Income Tax Law or Tax Department guidance before any capital-allowance figure is asserted.

5.5 Social Insurance and GHS (GESY)

Social Insurance rates (Social Insurance Services rules as printed on the government business portal):

Item	Value	Note
Source	all figures below	https://www.businessincyprus.gov.cy/social-insurance-registration-and-contributions/
Employee share on insurable earnings	8.8%	"proportion of 8.8%, 8.8% and 5.2%, respectively"
Employer share on the employee's insurable earnings	8.8%	"proportion of 8.8%, 8.8% and 5.2%, respectively"
State share	5.2%	"proportion of 8.8%, 8.8% and 5.2%, respectively"
Self-employed person's own share on insurable income	16.6%	"21.8% on their insurable income; 16.6% of which is paid by the self-employed"
Self-employed rate including the state share	21.8%	"21.8% on their insurable income; 16.6% of which is paid by the self-employed"
Employer-only Redundancy Fund	1.2%	"employers must contribute 1.2% to the Redundancy Fund"
Employer-only Human Resources Development Fund	0.5%	"0.5% to the Human Resources Development Fund"
Employer-only Social Cohesion Fund	2%	"2% to the Social Cohesion Fund for their employees"

Item	Value	Note
Source	all figures below	https://sisweb.mlsi.gov.cy/anotato2025/
Maximum insurable earnings, monthly-paid employees, from 1 January 2026	EUR 5,742	"€5.742 από 1/1/2026"
Maximum insurable earnings, weekly-paid employees, from 5 January 2026	EUR 1,325	"€1.325 από 5/1/2026"

GHS (General Healthcare System) contributions:

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf
GHS the employer withholds from employees' emoluments (tax year 2026 form)	2.65%	"you must withhold 2.65% G.H.S."
Annual income above which GHS withholding stops	EUR 180,000	"exceeds the amount of €180.000, stop withholding"

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/Guide-for-completion-of-tax-return-2025.pdf
GHS rate on self-employed income (2025 return guide; no 2026 page found)	4%	"for all income and periods throughout the year except for self- employed taxpayers"

• GHS on other income: the 2025 return guide charges GHS on all income at the employee rate in the TD59A table except self-employed income, and only on income up to the annual cap in that table, with incomes added together in a set order. No 2026 page restates this; confirm with the reviewer.
• Self-employed Social Insurance basis: contributions are paid on insurable income. The minimum insurable income per occupational category is set by Social Insurance Services and was not found on any readable allowed page. Do not assert a self-employed Social Insurance amount; use the cyprus-social-contributions skill and refer.
• Employer GHS share and the Central Holiday Fund: no readable allowed page prints the 2026 rates. See the cyprus-payroll skill and refer.

5.6 Deductions (TD59A, the one-fifth cap and the new 2026 personal deductions)

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf
Flat expenses deduction for let buildings, as a share of gross rents of buildings only	20%	"twenty per cent (20%) of the gross rents of building only is allowed as a deduction"
Life and disability insurance premiums: limit as a share of the capital sum insured	7%	"must not exceed 7% of the capital sum insured"
Medical fund contributions: limit as a share of gross income	2%	"maximum 2% of gross income per circular 3/30.5.24"
Home insurance for natural disasters: cap per tax year	EUR 500	"Home Insurance for natural disasters (up to €500)"
Housing deduction: rent of the main residence or interest on a serviced main-residence loan, per spouse, civil partner or single person	EUR 2,000	"a deduction of a) up to €2.000, under conditions, is granted to each spouse, civil partner or single person for interest on a serviced housing loan"
Green deduction: energy upgrade of the main residence or an electric vehicle, per spouse, civil partner or single person	EUR 1,000	"b) up to €1.000, under conditions, to each spouse or civil partner or single person for capital expenditure"
Optional special rate for AIF carried interest and UCITS performance fees	8%	"special tax rate of 8% with a minimum tax of €10.000 for AIF carried interest"
Minimum tax under that special rate	EUR 10,000	"special tax rate of 8% with a minimum tax of €10.000 for AIF carried interest"

The one-fifth cap. The total of the year's contributions for life insurance, approved medical funds, GHS, pension schemes, pension and provident funds and Social Insurance must not exceed one fifth of taxable income, measured as one fifth of the intermediary calculation (line B6 of form TD59A). Line B6 is income less union subscriptions, the first-employment exemption, home insurance, rental deductions and other deductions. Life and disability premiums from 1 January 2026 count inside the cap and are each limited to the share of the sum insured in the table above. The home insurance deduction reduces the income on which the cap is measured and does not count inside the cap.

New personal deductions from 2026 (FAQs, https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf):

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
First dependent child, per parent	EUR 1,000	"€1.000 για το πρώτο εξαρτώμενο τέκνο, • €1.250 για το δεύτερο"
Second dependent child	EUR 1,250	"€1.250 για το δεύτερο εξαρτώμενο τέκνο, • €1.500 για το τρίτο"
Third and each further dependent child	EUR 1,500	"€1.500 για το τρίτο και κάθε επιπρόσθετο εξαρτώμενο τέκνο"
Family income ceiling: no children, or one or two children	EUR 100,000	"€100.000 για οικογένειες χωρίς τέκνα ή με ένα (1) ή δύο (2) τέκνα"
Family income ceiling: three or four children	EUR 150,000	"€150.000 για οικογένειες με τρία (3) ή τέσσερα (4) τέκνα"
Family income ceiling: five or more children	EUR 200,000	"€200.000 για οικογένειες με πέντε (5) ή περισσότερα τέκνα"
Single person's income ceiling	EUR 40,000	"το συνολικό του μεικτό εισόδημα δεν υπερβαίνει τις €40.000"

Rules for these deductions, all from the FAQs above:

• They cover dependent children, rent or serviced housing-loan interest for the main residence in Cyprus, and capital spending on an energy upgrade of the main residence or an electric vehicle.
• They depend on the income criteria. The total GROSS family income (all members, all sources in Cyprus or abroad) must NOT EXCEED the ceiling for the family's number of children. It is a cliff: one euro over the ceiling and the deduction is lost in full, not tapered. Income of children in full-time education from work, child benefit and student grants are left out of family income.
• Spouses, civil partners, and partners without a civil partnership who have children together must each consent, in their own return, to share their tax data so the family income can be checked. The returns of both (or of the single person) must be filed on time. A late return loses the deductions.
• The child amounts are doubled for single-parent families (TD59A note 12).
• Housing: the cap in the TD59A table applies to interest and rent TOGETHER in a year, not to each. If the amount paid is lower, the actual amount is given. A restructured loan counts as serviced if instalments are paid without fail up to 31 December of the tax year.
• These deductions are given ON TOP of the one-fifth cap: they do not reduce the income on which the cap is measured and do not count inside it.
• Employees claim them on form TD59A through the employer, stating only the final amount per category, and again in the 2026 return.

5.7 Exemptions for people taking up work in Cyprus

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/Article-8-21B-of-the-Income-Tax-Law-N.118-I-2002.pdf
Article 8(21B) exemption on Cyprus employment remuneration or Cyprus business profits	25%	"can claim an income tax exemption of 25% on- a. his/her remuneration"
Gross earnings that must be exceeded in the year (and in the first 12 months)	EUR 30,000	"has gross earnings exceeding €30.000 in the relevant year"
Maximum exemption per tax year	EUR 25,000	"The exemption cannot exceed €25.000 in a tax year"

Article 8(21B), 25% (new; employment or self-employment started from 1 January 2025 to 31 December 2030). A Cyprus tax resident who meets ALL of these conditions: (a) was NOT Cyprus tax resident in the seven years before the year the Cyprus employment or business began (2019 to 2025); AND (b) WAS Cyprus tax resident in some year before those seven years; AND (c) earned more than the earnings figure in the table above in the first 12 months; AND (d) began the employment or self-employment in the window above; AND (e) at the start either holds a university degree recognised in Cyprus and worked full time abroad for a foreign employer for at least 36 of the 84 months before, OR worked full time abroad for a foreign employer for at least 84 months. It is granted for seven consecutive tax years starting with the year of commencement, but only in a year when Cyprus earnings exceed the earnings figure (a cliff: at or below it, no exemption that year) and the person is Cyprus tax resident (except the first year). The exemption is capped per year at the maximum in the table above. Source: https://www.gov.cy/media/sites/167/2026/06/Article-8-21B-of-the-Income-Tax-Law-N.118-I-2002.pdf

Articles 8(23) and 8(23A), 50%. The minimum pay figures are in the TD59A table below. Conditions from the Tax Department's explanatory table https://www.gov.cy/media/sites/167/2026/06/%CE%A0%CE%AF%CE%BD%CE%B1%CE%BA%CE%B1%CF%82-%CE%B1%CF%80%CE%B1%CE%BB%CE%BB%CE%B1%CE%B3%CF%8E%CE%BD-823-%CE%BA%CE%B1%CE%B9-823%CE%91.pdf

• 8(23A) as enacted by Law 121(I)/2022, for employment started from 1 January 2022 to 29 June 2023 only: 50% of remuneration from the FIRST employment in Cyprus, where remuneration exceeds the 8(23A) minimum in the TD59A table below, for 17 years or until that first employment ends, whichever is earlier. The person must not have been Cyprus tax resident for at least 10 years before the year the first employment began.
• 8(23A) as amended by Law 51(I)/2023, available for employment started from 1 January 2022 and the ONLY limb for employment started on or after 30 June 2023 (so every 2024, 2025 and 2026 starter): 50% of remuneration from employment in Cyprus, where remuneration exceeds the same minimum, for 17 years. Here "first employment in Cyprus" means starting Cyprus employment, with a resident or a non-resident employer, after 15 consecutive tax years with no employment in Cyprus, and the person must not have been Cyprus tax resident for at least 15 years before the year that employment began. A person who qualified under the 2022 wording before Law 51(I)/2023 keeps the exemption on the old conditions (table note 3).
• Old 8(23), employment started 1 January 2012 to 25 July 2022: 50% of remuneration from any employment in Cyprus, where remuneration exceeds the old minimum in the TD59A table below, for 10 years, for a person not resident in 3 of the last 5 years. Transitional rules move some 2016 to 2021 starters into 8(23A); refer those cases.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf
First employment: exemption as a share of emoluments	20%	"20% of your emoluments from any employment with a maximum of €8.550"
Maximum 20% exemption per tax year	EUR 8,550	"20% of your emoluments from any employment with a maximum of €8.550"
Old 50% exemption (circular 2017/4): salary must exceed	EUR 100,000	"your salary exceeds €100.000 in the tax year according to circular 2017/4"
50% exemption under circulars 2022/10 and 2024/04: salary must exceed	EUR 55,000	"your salary exceeds €55.000 in the tax year according to circular 2022/10"
50% exemption, as a share of emoluments	50%	"50% of your emoluments from any employment provided that your salary exceeds €55.000"

Articles 8(21) and 8(21A), 20%. Conditions from the Tax Department's explanatory table https://www.gov.cy/media/sites/167/2026/01/implementation-of-sections-21-and-21A-of-article-8-24072023.pdf

• 8(21A), employment starting between 26 July 2022 and 31 December 2027: for a person who, for the 3 consecutive years immediately before the first employment in Cyprus, was employed OUTSIDE Cyprus by an employer NOT resident in Cyprus. 20% of remuneration from the first employment, capped per year as in the table above, no minimum pay, for 7 years starting from the year AFTER the year the first employment began, or until that first employment ends, whichever is earlier.
• Old 8(21), employment up to 25 July 2022: for a person not resident in the year before employment began; any employment; 5 years from the year after commencement.
• Both are granted whether or not the person becomes Cyprus tax resident after starting work.

Only one first-employment exemption per claim. Form TD59A lets an employee deduct "either" the 20% exemption "or" one of the two 50% exemptions. No saved page states how 8(21B) interacts with the others; refer any person who may qualify for two.

5.8 Special Defence Contribution (SDC)

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
SDC on dividends received by individuals, for dividends out of profits of 2026 onward	5%	"Άτομα σε ποσοστό 5% (μείωση από το 17%)"
SDC on a dividend paid out of profits of 2025 or earlier, even if received later	17%	"σε ποσοστό 17% επί του (α) και ➢ σε ποσοστό 5% επί του (β)"
SDC on interest received or credited	17%	"αναφορικά με τόκο που λαμβάνει ή πιστώνεται, σε 17%"
Reduced SDC on interest from government savings certificates and development bonds, and listed corporate or public-body bonds	3%	"σε ποσοστό τρία τοις εκατό (3%)"

• Who pays: only individuals who are Cyprus tax resident AND domiciled in Cyprus. A non-domiciled resident, or a non-resident, pays no SDC on dividends, interest or rent. Source: https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
• Deemed domicile: whatever the domicile of origin, a person resident in Cyprus for at least 17 out of the last 20 years immediately before the tax year is treated as domiciled for SDC. A person with a Cypriot domicile of origin can be non-domiciled only under the narrow exceptions on the same page. Use the cy-non-dom skill.
• Rent: SDC on rental income was charged up to and including tax year 2025 and is abolished from 1 January 2026. Do not charge SDC on 2026 rents.
• Which dividend rate: the rate follows the year of the PROFITS the dividend is paid from, not the year it is received. A 2027 dividend out of 2025 profits bears the older rate in the table above.
• Deposit interest refund (2025 rule; confirm for 2026): the 2025 return guide refunds SDC withheld on deposit interest where total income including the interest does not exceed the amount in the table below. The guide does not print the refund formula, and no 2026 page restates the rule. Refer before relying on it.

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/Guide-for-completion-of-tax-return-2025.pdf
Total income ceiling for the SDC refund on deposit interest (tax year 2025 guide)	EUR 12,000	"does not exceed €12.000. Column 1 T.I.C."

5.9 Non-Deductible Expenses

Expense	Reason
Entertainment and private meals	Not wholly-and-exclusively business
Personal living expenses	Not business-related
Fines and penalties	Public policy
Income tax itself	Tax on income
Capital expenditure	Relieved via capital allowances, not as an expense
Drawings and personal withdrawals	Not an expense

5.10 VAT Interaction

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/syntelestes-f-p-a/
Standard VAT rate	19%	"Κανονικός συντελεστής (19%)"

Item	Value	Note
Source	all figures below	https://www.gov.cy/mof-tax/documents/eggrafi-akyrosi-f-p-a/eggrafes-mitrooy-f-p-a/ypochreosi-dikaioma-eggrafis-sto-mitroo-f-p-a/
Compulsory registration: taxable supplies in the 12 months to the end of any month have exceeded	EUR 15,600	"έχει υπερβεί τις €15.600"

Scenario	Income Tax Treatment
VAT collected on sales (registered)	NOT income; exclude from gross
Input VAT recovered (registered)	NOT an expense; exclude from costs
Input VAT blocked or non-deductible	IS a cost; include in the expense
Not VAT-registered (below the registration threshold)	All VAT paid on purchases is a cost (gross)
Foreign VAT (non-reclaimable)	IS a cost; full gross

5.11 Provisional (Temporary) Tax

Source: the Tax Department deadline calendar https://www.gov.cy/mof-tax/prothesmies/ and the FAQs https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf

Item	Detail
Who	Individuals with income other than employment (self-employment, rent and other sources); also employees with income from other sources. Employees with only PAYE income do not pay provisional tax
Instalments	Provisional tax computation submitted and the first of two instalments paid by 31 July, the second by 31 December, of the tax year itself
Form	Temporary declaration code 0200 through the Tax portal by the end of July (TD59A note 3)
Income starting after 30 June (from 2026)	A person who starts earning non-employment income after 30 June files the provisional tax declaration and pays ONE instalment by 31 December of that year (Law 243(I)/2025; collection presentation in Section 5.12)
Final balance	Paid by self-assessment by the return deadline in Section 5.12
Underestimation	The additional tax for underestimating provisional tax is not printed on any saved page; refer

Trap: the official calendar labels the July and December 2026 provisional tax rows "for 2025". Read them as the 2026 instalments only after checking with the reviewer.

5.12 Filing Duty, Deadlines, Accounts and Interest

Who must file from tax year 2026. A return is required from (a) any person with gross income (before any exemption or deduction) within article 5 of the Income Tax Law: business, employment, dividends, interest, pension, rents, royalties, property, sale of crypto-assets and similar; OR (b) any Cyprus tax resident who, by 31 December of the tax year, has completed their 25th year of age but not their 71st, whatever their income, even with no income. A resident with no gross income who is under 25 or has completed their 71st year by 31 December does not have to file. A non-resident files if they have income arising in Cyprus. The old income threshold for filing (the tax-free amount up to 2025) no longer applies. The Council of Ministers may exempt categories by decree. Sources: https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf and https://www.gov.cy/mof-tax/en/documents/forologiki-dilosi-eisodimatos-atomoy/

Item	Value	Note
Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%9D%CF%8C%CE%BC%CE%BF%CE%B9-%CE%A0%CE%92%CE%95-%CE%95%CE%B9%CF%83%CF%80%CF%81%CE%AC%CE%BE%CE%B5%CF%89%CF%82-%CE%A7%CE%B1%CF%81%CF%84%CE%BF%CF%83%CE%AE%CE%BC%CF%89%CE%BD.pdf
Turnover up to which an individual in business need not prepare accounts, from tax year 2026	EUR 120,000	"από €70.000 σε €120.000 για την υποχρέωση ετοιμασίας λογαριασμών από φυσικά πρόσωπα"
Turnover threshold up to tax year 2025 (not for 2026)	EUR 70,000	"από €70.000 σε €120.000 για την υποχρέωση ετοιμασίας λογαριασμών από φυσικά πρόσωπα"
Reviewed (not audited) accounts band: turnover from EUR 120,001 and below EUR 200,000 (the page prints "<"; edge unconfirmed)	EUR 200,000	"€120.001 < €200.000 και €500.000 Επισκόπηση λογαριασμών"
Reviewed accounts band: total assets up to	EUR 500,000	"€120.001 < €200.000 και €500.000 Επισκόπηση λογαριασμών"
Interest rate on overdue tax from 1 January 2026	3.5%	"(από 1/1/2026 είναι 3,5%)"

Accounts. From tax year 2026 an individual in business whose turnover does not exceed (or for at least two consecutive years ceases to exceed) the first figure above need not prepare accounts. Above it, reviewed accounts are allowed within the turnover and total-assets limits above; otherwise audited accounts are required. The presentation's table is garbled in the saved copy; confirm the exact band edges with the reviewer.

Deadlines (Assessment and Collection of Taxes Law article 5(1A) as amended; collection presentation above; FAQs):

Who	Return and self-assessment payment for tax year 2026
Individuals not required to prepare reviewed or audited accounts (employees, pensioners, landlords, smaller self-employed)	31 July 2027 (FAQs: "Η προθεσμία υποβολής είναι μέχρι την 31η Ιουλίου 2027")
Individuals required to prepare reviewed or audited accounts	31 January of the second year after the tax year (for tax year 2026, 31 January 2028), replacing 31 March of that year
Employers' annual return of employees	31 March of the year after the tax year, with no three-month extension

• Interest: from tax year 2026, interest on tax due after an assessment runs from 1 August of the year after the tax year for individuals without accounts, and from 1 February of the second year for those with accounts. The rate is in the table above. If the Tax Department extends the filing deadline by public announcement, interest runs from the end of the extended deadline, and a return and self-assessment filed within the extension carry no late-filing or late-payment charge.
• Late filing and late payment charges: the 2026 amounts appear only as an image in the official presentation and are not readable. Refer; do not quote an amount.
• Records: keep documents supporting the return for 6 years from the later of the filing deadline and the actual filing date; a revised return restarts the period.

Section 6: Edge Cases

6.1 Home Office Deduction

Legislation: Income Tax Law N.118(I)/2002.

• Calculate the proportion of the home used for business (dedicated rooms as a share of total rooms or floor area).
• Apply that share to rent or mortgage interest, electricity, water, internet, maintenance.
• Must be a genuinely dedicated workspace; a dual-use room does NOT qualify.

Conservative default: no deduction until the reviewer confirms the room arrangement. Flag for reviewer: confirm room count, floor-area basis, and dedicated use.

6.2 Motor Vehicle Business Use

• Only the business-use share of fuel, insurance, maintenance and capital allowance is deductible.
• Client must keep a mileage log (business and total).

Conservative default: no business use until a mileage log is provided. Flag for reviewer: confirm the business share is documented and reasonable, and confirm the wear-and-tear rate (see the 5.4 research gap).

6.3 Phone and Internet Mixed Use

• Business-use portion only; client must provide a reasonable estimate.

Conservative default: no deduction until the business share is confirmed.

6.4 Non-Dom Status and SDC

• Non-dom status removes SDC on dividends and interest (and, up to tax year 2025, on rent), but requires confirmation of domicile of origin and the 17-of-20-year deemed-domicile test.
• Flag for reviewer: do NOT assert non-dom status without evidence; the conservative default treats the individual as domiciled (SDC applies). For the optional lump-sum extension for deemed-domiciled people, use the cy-non-dom skill.

6.5 Exemption Eligibility

• The 25%, 50% and 20% exemptions have strict prior-residence, prior-employment, date and pay conditions (Section 5.7). Form TD59A allows only one of the 20% and 50% exemptions.
• Flag for reviewer: confirm prior-residence history, foreign employment history, the remuneration threshold and the first-employment date.

6.6 Foreign Pension Election

• Special rate above the annual threshold, or normal scale; yearly election (Section 5.3).
• Flag for reviewer: confirm which election is beneficial.

6.7 Bad Debt Write-Off

• Deductible only if (1) income was previously declared, (2) all reasonable recovery steps were taken, (3) the debt is genuinely irrecoverable. [Legacy rule; no saved page states it.]
• Flag for reviewer to confirm all three conditions.

6.8 Self-Employed Insurable Income Category

• Social Insurance is computed on insurable income for the occupational category.
• Flag for reviewer: confirm the occupational category and the official minimum from the Social Insurance Services table.

6.9 New Personal Deductions at the Family Income Ceiling

• The ceiling is on gross family income, including the partner's income and foreign income. One euro over and all child, housing and green deductions are lost (Section 5.6).
• Flag for reviewer: confirm both partners' gross income, their consent in the return, and that both returns were filed on time.

Section 7: Working Paper Template

CYPRUS INCOME TAX: INDIVIDUAL RETURN WORKING PAPER
Tax Year: 2026 (filed through Tax For All)
Client: ___________________________
Residency: Resident (183-day / 60-day) / Non-resident
Domicile: Domiciled / Non-dom
Age at 31 December: ______ (filing duty, Section 5.12)

A. SELF-EMPLOYMENT GROSS INCOME
  A1. Client payments (net of VAT if registered)   ___________
  A2. Platform payouts (Stripe, PayPal, etc.)      ___________
  A3. Other business income                         ___________
  A4. TOTAL gross self-employment income            ___________
  (Turnover check: accounts, review or audit, Section 5.12)

B. ALLOWABLE BUSINESS DEDUCTIONS
  B1. Office rent                                   ___________
  B2. Professional insurance                        ___________
  B3. Accountancy / legal fees                      ___________
  B4. Office supplies / stationery                  ___________
  B5. Software subscriptions                        ___________
  B6. Marketing / advertising                       ___________
  B7. Bank charges / payment processing fees        ___________
  B8. Training / professional subs                  ___________
  B9. Travel (flights, hotels, transport)           ___________
  B10. Telecoms (business share of phone/internet)  ___________
  B11. Home office (share of utilities/rent)        ___________
  B12. Vehicle expenses (business share)            ___________
  B13. Capital allowances (wear and tear)           ___________
  B14. Other allowable expenses                     ___________
  B15. TOTAL business deductions                    ___________

C. NET PROFIT (A4 - B15)                            ___________

D. OTHER INCOME
  D1. Employment income (PAYE emoluments)           ___________
  D2. Rental income less flat buildings deduction,
      capital allowances and interest               ___________
  D3. Foreign pension (if normal scale elected)     ___________
  D4. TOTAL other taxable income                    ___________
  (Dividends and interest: not taxable for income tax; SDC and GHS only)
  (Crypto gains, share option benefits, foreign pension in special mode:
   taxed separately at their special rates, Section 5.3)

E. EXEMPTIONS AND FIRST DEDUCTIONS
  E1. Exemption 8(21B) / 8(23A) / 8(21A) (one only)  ___________
  E2. Union and professional subscriptions          ___________
  E3. Home insurance (natural disasters, capped)    ___________
  E4. Other deductions                              ___________
  E5. INTERMEDIARY INCOME (C + D4 - E1 to E4)       ___________

F. ONE-FIFTH CAP
  F1. Social Insurance                              ___________
  F2. GHS                                           ___________
  F3. Life / disability premiums (capped per policy)___________
  F4. Pension, provident and medical funds          ___________
  F5. SUBTOTAL (F1 to F4)                           ___________
  F6. Cap = E5 / 5                                  ___________
  F7. Allowed = MIN(F5, F6)                         ___________

G. NEW PERSONAL DEDUCTIONS (outside the cap; income criteria)
  G1. Dependent children                            ___________
  G2. Rent or housing-loan interest (one cap)       ___________
  G3. Energy upgrade / electric vehicle             ___________
  G4. TOTAL (0 if family income over the ceiling)   ___________

H. CHARGEABLE INCOME (E5 - F7 - G4)                  ___________

I. TAX (2026 scale, Section 1)
  I1. Tax on chargeable income                      ___________
  I2. Special-rate taxes (Section 5.3)              ___________
  I3. Less: PAYE withheld                           ___________
  I4. Less: provisional tax paid                    ___________
  I5. Less: foreign tax credit (if any)             ___________
  I6. Tax due / refund                              ___________

J. SDC (only if resident AND domiciled)
  J1. Dividends from 2026+ profits                  ___________
  J2. Dividends from 2025-or-earlier profits        ___________
  J3. Interest (general rate or reduced bond rate)  ___________
  J4. Rent: none from 2026

REVIEWER FLAGS:
  [ ] Residency confirmed (183-day / 60-day)?
  [ ] Domicile / non-dom status confirmed?
  [ ] Filing duty confirmed (income or age)?
  [ ] Accounts / review / audit position confirmed (turnover)?
  [ ] VAT registration status confirmed?
  [ ] Home office arrangement confirmed?
  [ ] Vehicle business share confirmed with mileage log?
  [ ] One-fifth cap applied correctly?
  [ ] Family income criteria and partner consent confirmed?
  [ ] Capital allowance rates confirmed (RESEARCH GAP)?
  [ ] Self-employed insurable income category confirmed?
  [ ] Exemption eligibility confirmed?
  [ ] Tax year 2026 scale used (not 2025)?

Cyprus Bank Statement Formats

Bank	Format	Key Fields	Notes
Bank of Cyprus	PDF, CSV	Date, Description, Debit, Credit, Balance	Most common; Greek and English; description has counterparty and reference
Hellenic Bank	PDF, CSV	Value Date, Description, Amount, Balance	Card transactions show merchant
Eurobank Cyprus	PDF	Date, Particulars, Withdrawals, Deposits	Private and business
Astrobank	PDF	Date, Description, Amount, Balance	Mixed-language descriptions
Revolut Business	CSV	Date, Counterparty, Amount, Currency, Reference	Clean data; multi-currency possible
Wise Business	CSV	Date, Description, Amount, Currency, Running Balance	Multi-currency; conversion fees on a separate line

Key Cypriot and Greek Banking Terms

Term (Greek or transliterated)	English	Classification Hint
METAFORA / EMBASMA	Transfer or remittance	Check direction for income or expense
AMESI CHREOSI / DD	Direct debit	Regular expense (utility, subscription)
PAGIA ENTOLI / SO	Standing order	Regular expense (rent, loan)
KARTA / CARD	Card payment	Expense; check merchant
KATATHESI / DEPOSIT	Deposit	Potential income
SPEXODA / CHARGES	Bank charges	Deductible business expense
TOKOS / INTERESSI	Interest	Interest income (not taxable for income tax; SDC if domiciled) or bank charge
MISTHOS	Salary	Employment income (PAYE)
ENOIKIO	Rent	Rental income or office-rent expense
FPA	VAT	VAT liability or credit; exclude from income and expense

Section 9: Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING: reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS (CYPRUS INCOME TAX):
1. Residency: were you in Cyprus more than 183 days in 2026?
   If not, do you meet the 60-day rule (at least 60 days, not more than 183 days
   in any other single country, Cyprus business, job or directorship held to
   31 December, and a Cyprus home)?
2. Domicile: are you Cyprus-domiciled, or do you claim non-dom status?
3. Age at 31 December 2026 (filing duty)?
4. Employment status: employee under PAYE, self-employed, or both?
5. Business turnover and total assets (accounts, review or audit)?
6. VAT registration: did taxable supplies pass the registration threshold?
7. Occupational category (self-employed Social Insurance)?
8. Home office: dedicated room or shared space? If dedicated, what share of floor area?
9. Vehicle: business use share, and do you keep a mileage log?
10. Phone and internet: business use share?
11. Social Insurance and GHS: total amounts paid in the tax year?
12. Provisional (temporary) tax: total amount paid in the tax year?
13. Other income: employment, rental, dividends (from which year's profits), interest,
    foreign pension, crypto, share options?
14. Family: dependent children, gross income of spouse or partner, rent or
    housing-loan interest, energy upgrade or electric vehicle spending?
15. When and how did you start work in Cyprus (25%, 50% or 20% exemption)?

Key Legislation and Authority References

Topic	Reference
Income tax rates, exemptions and deductions	Income Tax Law N.118(I)/2002, as amended (Law 244(I)/2025 from 1 January 2026)
Special Defence Contribution	Special Defence Contribution Law N.117(I)/2002, as amended
Returns, deadlines, accounts, interest, penalties	Assessment and Collection of Taxes Law, as amended (Law 243(I)/2025)
Tax authority	Cyprus Tax Department (Τμήμα Φορολογίας), Ministry of Finance
Social insurance authority	Social Insurance Services, Ministry of Labour and Social Insurance
Filing portal	Tax For All (TFA) from tax year 2026

Key Thresholds (each carries a source)

Every threshold sits in the sourced table of its section. This index points to them.

Threshold	Where
Tax-free amount and bands	Section 1, FAQs table
Residency: 183-day and 60-day rules	Section 5.2
Deemed domicile for SDC	Section 5.8
Social Insurance maximum insurable earnings	Section 5.5, Social Insurance Services table
GHS annual income cap	Section 5.5, TD59A table
Family and single income ceilings for the new personal deductions	Section 5.6, FAQs table
Exemption pay thresholds	Section 5.7
VAT compulsory registration	Section 5.10
Accounts, review and audit turnover thresholds	Section 5.12

2026 New Deductions (apply only from tax year 2026)

The child, housing and green deductions (with income criteria), the home insurance deduction, the disability insurance deduction and the cultural donations deduction are set out with their limits in Sections 5.3 and 5.6.

Cited Sources

All sources are listed under "Sources" at the end of this skill. Every source is an official Cyprus government page.

Test Suite

Amounts in these tests are hypothetical unless stated.

• Test A (ordinary): resident, chargeable income as in Example 5 (tax year 2026). Expected: the tax in the Example 5 table.
• Test B (boundary): chargeable income equal to the top of the 0% band in Section 1. Expected: no tax. One euro more is taxed at the 20% band rate.
• Test C (exclusion): resident but non-domiciled; dividends only. Expected: no income tax (dividends are not taxable for income tax) and no SDC (non-dom). GHS may still apply (Section 5.5).
• Test D (special mode): foreign pension as in Example 6, special mode elected. Expected: the tax in the Example 6 table.
• Test E (cap): a person who meets every article 8(21B) condition and whose 25% exemption would exceed the yearly maximum in Section 5.7. Expected: the exemption is limited to that maximum.
• Test F (cliff): family with two children and gross family income one euro above the ceiling for that family size. Expected: no child, housing or green deduction at all.
• Test G (rent): resident domiciled landlord, 2026 rents. Expected: income tax at the scale after the flat buildings deduction; GHS; no SDC.

The method, step by step

1. Confirm the year and the law. Tax year 2026 follows Income Tax Law N.118(I)/2002 as amended by Law 244(I)/2025, in force from 1 January 2026 (FAQs: https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf).
2. Decide residency under the 183-day or 60-day rule, and domicile for SDC (Tax Department page: https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/).
3. Decide the filing duty from income and age (Assessment and Collection of Taxes Law article 5, Tax Department return page: https://www.gov.cy/mof-tax/en/documents/forologiki-dilosi-eisodimatos-atomoy/).
4. Classify the year's income (Section 3 and Section 5.3). Separate income taxed at special rates (crypto, share options, AIF carried interest, foreign pension in special mode) and income not taxable (dividends, interest), using the TD59A form notes (https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf).
5. Compute self-employed profit and check turnover against the accounts thresholds (collection presentation, Section 5.12).
6. Apply exemptions (Section 5.7): 8(21B), 8(23A) or 8(21A), one first-employment exemption only (form TD59A note 7).
7. Apply deductions in the TD59A order (https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf): subscriptions, home insurance, rental deductions, other deductions, then the one-fifth cap on contributions and premiums, then the new personal deductions if the family income criteria are met (FAQs).
8. Apply the 2026 scale to chargeable income (Section 1), and add the special-rate taxes.
9. Compute SDC for resident domiciled individuals on dividends and interest only (SDC presentation: https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf), and GHS on income not already withheld (TD59A).
10. Credit PAYE and provisional tax, then file through Tax For All by the deadline in Section 5.12 and pay the self-assessment (deadline calendar: https://www.gov.cy/mof-tax/prothesmies/).

Ask the client first

• How many days were you in Cyprus in 2026, how many in any other single country, and did you have a Cyprus business, job or directorship and a Cyprus home until 31 December? (Residency, Section 5.2.)
• Where were you born and where is your permanent home, and in how many of the last 20 years were you Cyprus tax resident? (Domicile and SDC, Section 5.8.)
• When did you start your current job or business in Cyprus, where did you live and work in the years before, and what is your annual pay? (Exemptions, Section 5.7.)
• What was the gross income of everyone in your family for 2026, how many dependent children do you have, and will your spouse or partner consent in their return? (New personal deductions, Section 5.6.)
• What was your business turnover and total assets? (Accounts and the deadline, Section 5.12.)
• Did you have crypto disposals, share options, foreign pensions, dividends from pre-2026 profits, or rental income? (Special rates and SDC, Sections 5.3 and 5.8.)

When to refuse or refer

• Residency or domicile cannot be confirmed (R-CY-1, R-CY-7).
• Companies, partnerships, capital gains on Cyprus property, non-resident or treaty cases (R-CY-2 to R-CY-4).
• Arrears, enforcement, or a request to estimate late filing or late payment charges: the 2026 amounts are not readable on any allowed page (R-CY-5).
• Underestimation of provisional tax: the additional tax rule is not printed on any saved page.
• Anyone who may qualify for two exemptions, or who started work in Cyprus between 2016 and 2021 (transitional 8(23A) rules).
• Crypto-asset gains, approved share option plans, AIF carried interest (R-CY-8).
• Share or other title disposals (article 8(22) not printed on any saved page).
• Self-employed Social Insurance amounts and capital allowance rates (research gaps).
• Family income near a deduction ceiling, or a partner who will not consent.

PROHIBITIONS

• NEVER apply the Cyprus scale without first confirming tax residency
• NEVER assert non-dom status (and the SDC exemption) without evidence; default to domiciled
• NEVER apply the 2026 scale or deductions to tax year 2025 income, or the 2025 scale to 2026
• NEVER treat dividends or interest as taxable for income tax; they bear SDC (if domiciled) and GHS only
• NEVER charge SDC on rent for tax year 2026
• NEVER assert a self-employed Social Insurance figure without the official occupational-category table
• NEVER assert a capital-allowance rate; it is a research gap until confirmed
• NEVER allow entertainment or private expenses as deductions by default
• NEVER allow income tax itself, fines or penalties as a deduction
• NEVER include VAT collected on sales in business income for a VAT-registered person
• NEVER exceed the one-fifth cap on contributions and premiums
• NEVER grant the child, housing or green deductions without checking gross family income against the ceiling
• NEVER present tax calculations as definitive; label them as estimates pending reviewer sign-off

Sources

• Tax Department, Tax Reform 2026 hub: https://www.gov.cy/mof-tax/en/documents/forologiki-metarrythmisi-2026/
• FAQs for individuals, version 11 May 2026: https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
• Form TD59A 2026 (English): https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf
• Individual Income Tax Return page: https://www.gov.cy/mof-tax/en/documents/forologiki-dilosi-eisodimatos-atomoy/
• Tax Residency and Domicile page: https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
• Presentation, Tax Reform 2026 for individuals (11 May 2026): https://www.gov.cy/media/sites/167/2026/05/%CE%A6%CE%BF%CF%81%CE%BF%CE%BB%CE%BF%CE%B3%CE%B9%CE%BA%CE%AE-%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-2026-%CF%86%CF%85%CF%83%CE%B9%CE%BA%CE%AC-%CF%80%CF%81%CF%8C%CF%83%CF%89%CF%80%CE%B1-11.05.2026.pdf
• Presentation, Income Tax Law amendments: https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%A6%CF%8C%CF%81%CE%BF%CF%82-%CE%95%CE%B9%CF%83%CE%BF%CE%B4%CE%AE%CE%BC%CE%B1%CF%84%CE%BF%CF%82.pdf
• Presentation, Assessment and Collection of Taxes Law amendments: https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%9D%CF%8C%CE%BC%CE%BF%CE%B9-%CE%A0%CE%92%CE%95-%CE%95%CE%B9%CF%83%CF%80%CF%81%CE%AC%CE%BE%CE%B5%CF%89%CF%82-%CE%A7%CE%B1%CF%81%CF%84%CE%BF%CF%83%CE%AE%CE%BC%CF%89%CE%BD.pdf
• Presentation, Special Defence Contribution and Capital Gains: https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
• Article 8(21B) exemption leaflet: https://www.gov.cy/media/sites/167/2026/06/Article-8-21B-of-the-Income-Tax-Law-N.118-I-2002.pdf
• Explanatory table, articles 8(23) and 8(23A): https://www.gov.cy/media/sites/167/2026/06/%CE%A0%CE%AF%CE%BD%CE%B1%CE%BA%CE%B1%CF%82-%CE%B1%CF%80%CE%B1%CE%BB%CE%BB%CE%B1%CE%B3%CF%8E%CE%BD-823-%CE%BA%CE%B1%CE%B9-823%CE%91.pdf
• Explanatory table, articles 8(21) and 8(21A): https://www.gov.cy/media/sites/167/2026/01/implementation-of-sections-21-and-21A-of-article-8-24072023.pdf
• Return completion guide 2025: https://www.gov.cy/media/sites/167/2026/06/Guide-for-completion-of-tax-return-2025.pdf
• Tax Department deadline calendar: https://www.gov.cy/mof-tax/prothesmies/
• VAT rates: https://www.gov.cy/mof-tax/documents/syntelestes-f-p-a/
• VAT registration obligation: https://www.gov.cy/mof-tax/documents/eggrafi-akyrosi-f-p-a/eggrafes-mitrooy-f-p-a/ypochreosi-dikaioma-eggrafis-sto-mitroo-f-p-a/
• Social Insurance rates (government business portal): https://www.businessincyprus.gov.cy/social-insurance-registration-and-contributions/
• Social Insurance maximum insurable earnings 2026: https://sisweb.mlsi.gov.cy/anotato2025/

Disclaimer

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