Cyprus
Tax Calculator
Enter your annual company profit and see what you take home in Cyprus: a standard company and one applying the IP Box, side by side, with every number explained.
0%
SDC on dividends
17 yrs
Exemption period
15%
Cyprus corporate tax rate
From 3%
IP Box floor on qualifying IP
How much tax do you pay in Cyprus?
How much tax you pay in Cyprus depends on how the money reaches you. Salary and self-employment income are taxed at progressive rates: nothing on the first €22,000, then 20% to 35%. Company profit is taxed at a flat 15%, and a dividend drawn from it adds a 2.65% GeSY levy — plus 0% Special Defence Contribution if you hold Non-Dom status.
Cyprus personal income tax rates (tax year 2026)
| Annual income | Tax rate |
|---|---|
| Up to €22,000 | 0%Tax-free |
| €22,001 – €32,000 | 20% |
| €32,001 – €42,000 | 25% |
| €42,001 – €72,000 | 30% |
| Over €72,000 | 35% |
These rates apply to employment, self-employment and pension income. The tax-free band was €19,500 for tax years up to and including 2025 and rose to €22,000 from tax year 2026. Dividends are not taxed under these bands at all — they carry the Special Defence Contribution and the GeSY levy instead, which is what the calculator below works out. An owner who takes both a salary and a dividend pays under both sets of rules, on different slices of the money.
Calculate Your Tax Position
Enter your company's annual pre-tax profit. Each breakdown runs in two steps: step 1 is the company's tax on its profit, step 2 is your own tax on the dividend you take out of it. The left column taxes the whole profit at 15%; the right applies the IP Box to the share of profit you say qualifies, deducting 80% of that share and taxing the 20% left at 15%. The SDC exemption is included as standard in both, and the GeSY levy belongs to step 2 — it is charged to you, not to the company.
Standard Cyprus company
The whole profit taxed at the corporate rate
Step 1
The company
Tax on the profit, paid by the company.
No IP Box relief. Every euro of profit is taxed at 15%, whatever the profit came from.
Profit after tax
€85,000Step 2
The dividend
Tax on what you take out, paid by you personally.
Net dividend in your pocket
15% in step 1, then 2.65% in step 2 — 17.3% all-in
With the IP Box
80% of qualifying IP profit deducted, the rest taxed at 15%
Step 1
The company
Tax on the profit, paid by the company.
Your estimate, not a legal rate. The 80% deduction below is fixed by law; this is not.
Profit after tax
€92,200Step 2
The dividend
Tax on what you take out, paid by you personally.
Net dividend in your pocket
7.8% in step 1, then 2.65% in step 2 — 10.2% all-in
With the IP Box you keep €7,009 more a year
€89,757 instead of €82,748, at 60% of profit qualifying.
What is Non-Dom status?
0% Special Defence Contribution on dividends, interest and rental income for up to 17 years, where a Cyprus-domiciled resident pays 5%. Most foreign nationals who move to Cyprus and spend at least 60 days a year there qualify.
Read the Non-Dom guideWhat is the IP Box?
If your profit comes from software you wrote or a patent you hold, the law deducts 80% of it and taxes only the remaining 20% at the normal 15% rate. That works out at 3% of the IP profit, before the GeSY levy you pay when you draw the dividend.
The 80% is fixed by law. How much of your profit counts as IP profit is not, and that is what the slider sets. It shrinks again if you bought the IP rather than built it. Trademarks and brand names never qualify.
What the IP Box is really worthFor illustration only, not a computation of your liability, and not a determination that any of your income qualifies for the IP Box. It assumes the whole after-tax profit is distributed to you in the same year, because GeSY is charged on the dividend when you draw it. It does not account for personal income tax, allowable deductions, or individual circumstances. Tax law is subject to change. Always seek independent professional advice before making decisions based on this content. IP Box advice comes from a licensed Cyprus tax advisor under their own professional responsibility; CyPRO One coordinates the engagement.
Cyprus tax at three profit levels
A standard Cyprus company with Non-Dom ownership, taking the whole after-tax profit out as a dividend in the same year. No IP Box applied.
| Annual company profit | Corporate tax (15%) | GeSY on the dividend | You receive | All-in rate |
|---|---|---|---|---|
| €50,000 | €7,500 | €1,126 | €41,374 | 17.3% |
| €100,000 | €15,000 | €2,253 | €82,748 | 17.3% |
| €250,000 | €37,500 | €4,770Capped | €207,730 | 16.9% |
The all-in rate falls at higher profits rather than rising, because the GeSY levy is capped at €4,770 a year while the profit it is charged on is not. Cyprus has no progressive rate on company profit, so the 15% never increases either. Figures assume Non-Dom status, which is what makes the Special Defence Contribution nil; a Cyprus-domiciled owner would pay 5% Special Defence Contribution on the dividend on top of these amounts.
How the Numbers Work
Step 1 — The Company
All Cyprus companies pay a flat 15% corporate tax on net taxable profits. It is charged to the company, on its profit, before anything reaches you — and applies whether or not you have Non-Dom status. The company's tax bill ends here.
Step 2 — The Dividend
Two charges fall on you rather than on the company, once the after-tax profit is paid out to you. SDC: €0 with Non-Dom status, against 5% for a Cyprus-domiciled resident (reduced from 17% under the 2026 reform). GeSY: 2.65% of the dividend, capped at €4,770 a year.
Step 3 — Net Received
What lands in your pocket after the company's corporate tax and your own SDC and GeSY. The two levels sit on different bases, so they do not simply add together: 15% and 2.65% work out at 17.3% of profit, not 17.65%.
Optional — the IP Box
Profit from software you wrote or a patent you hold is taxed far more lightly: 80% of it is deducted and only the remaining 20% is taxed at 15%, which works out at 3%. The 80% is fixed by law. How much of your profit counts as IP profit is not, and depends on the research and development your business did itself.
What is Cyprus Non-Dom Status?
Cyprus Non-Domicile (Non-Dom) status is a formal tax classification granted to individuals who become Cyprus tax residents but were not born in Cyprus and have not historically been domiciled there. It is codified under Section 2 of the Special Defence Contribution (SDC) Law, introduced as part of the 2015 Cyprus tax reform.
Non-Dom status exempts you from SDC on dividends, interest, and rental income for up to 17 consecutive years. (Under the 2026 tax reform, SDC on dividends and interest was reduced from 17% to 5% for Cyprus-domiciled residents; Non-Doms remain at 0%.) Combined with Cyprus's 15% corporate tax rate — one of the lowest in the EU — it creates an efficient structure for founders, fund managers, and international entrepreneurs.
To qualify, you typically need to spend at least 60 days per calendar year in Cyprus, spend no more than 183 days in any other single country, carry on a business or hold an office in a Cyprus tax-resident company, and maintain a permanent home in Cyprus. CyPRO One coordinates the application with a licensed Cyprus lawyer.
What is the Cyprus IP Box?
If your company earns money from software you wrote or a patent you hold, Cyprus taxes that part of your profit far more lightly. The law deducts 80% of it, and only the remaining 20% is taxed at the normal 15% corporate rate. That works out at 3% of the IP profit. The same sum at the old 12.5% rate gave the 2.5% that articles written before 2026 still quote; what moved on 1 January 2026 was the corporate rate, not the 80%.
The 80% is fixed by law. What is not fixed is how much of your profit counts as IP profit in the first place, which is why the calculator above asks you rather than assuming. A studio living off its own software sits near the top of the range; an agency billing day rates has little or no IP income to relieve. The relief shrinks again if you bought the intangible asset or paid someone else to develop it, because it is calculated on the nexus approach and tied to the research and development your own business carried out. Software copyrights and patents can qualify. Trademarks and brand names cannot, and stay at the standard 15%.
Treat 3% as a floor rather than a rate. Most real cases land above it. What counts as a qualifying intangible asset, and how qualifying profits are computed, are set by Regulations made by the Council of Ministers, which makes eligibility a technical determination rather than a reading of the statute.
CyPRO One does not give IP Box advice itself. It is a coordinator and platform, not a licensed tax practice. The advice comes from a licensed Cyprus tax advisor working under their own professional responsibility, and we coordinate that engagement alongside the formation and the ongoing compliance, and stay your single point of contact.
Article 9(1)(κ), Income Tax Law 118(I)/2002.
Frequently Asked Questions
How much tax do I pay in Cyprus?
What is the corporate tax rate in Cyprus in 2026?
How much can I earn in Cyprus before paying income tax?
Do I pay tax on dividends in Cyprus?
How many days do I need to spend in Cyprus to become a tax resident?
Is Cyprus a tax haven?
What is the lowest tax rate a Cyprus company can pay?
Written by Renato Giurea, founder of CyPRO One · Updated 23 September 2026
Regulated work described on this page is carried out by licensed Cyprus partners.
This page is for information only
Nothing on this page constitutes legal or tax advice. The calculator above is an illustration rather than a computation of your liability, and its IP Box column is not a determination that any of your income qualifies: the relief runs through the nexus approach, and what counts as a qualifying intangible asset is set by Regulations made by the Council of Ministers, so eligibility is a technical question for a licensed Cyprus tax advisor. Both columns assume the whole after-tax profit is distributed to you in the same year, because the GeSY levy is charged on the dividend when you draw it. Tax law is subject to change. The specific impact of Cyprus tax residency and Non-Dom status on your circumstances depends on your income mix, your days of presence, your domicile history, and your obligations in other countries. Always seek independent professional advice before making decisions based on this content. Non-Dom applications are submitted by a Cyprus Bar Association registered lawyer, and IP Box advice comes from a licensed Cyprus tax advisor under their own professional responsibility; CyPRO One coordinates the engagement and acts as your single point of contact.