- Income tax is taxed progressively as below table:
| Taxable Income (€) | Tax rate (%) |
| 0 – 19,500 | 0 |
| 19,501 – 28,000 | 20 |
| 28,001 – 36,300 | 25 |
| 36,301 – 60,000 | 30 |
| 60,001 and above | 35 |
- Allowable tax-deductible expenses include the following:
- Life insurance premiums (restricted to 7% of the insured amount),
- Employee contributions to social insurance fund,
- Employee contributions to individual pension,
- Employee contributions to provident fund (restricted to 10% of remuneration),
- Employee contributions to medical fund (restricted to 2% of total incomes),
- Employee contributions to GeSY,
- Contributions to trade unions or other professional bodies.
- Research and Development (R&D) expenses allowance equal to 20% of the expenses incurred.
Exemptions:
- 20% exemption:
- S8 (21): 20% on the remuneration or €8,550, from any employment exercised in Cyprus by an individual who was resident outside of Cyprus before the commencement of their employment. As from 26/07/2022 this is no longer applicable and 8 (21A) applies.
- 9 (21A): 20% on the remuneration applies for first employments after 26/07/2022 by individuals who immediately prior to their employment in Cyprus were not resident for a period of at least 3 consecutive years. It applies for 7 years starting from the tax year following the tax of commencement of employment.
- 50% exemption:
- S8 (23): 50% on the employment remuneration exceeding €100,000, applicable for 10 years. As from 26/07/2022 this is no longer applicable and 8 (23A) applies.
- 8 (23A): 50% on the employment remuneration exceeding €55,000 for employments after 01/01/2022, applicable for individuals not resident in Cyprus for a period of at least 10 consequential tax years for 17 years.
- 100% exemption on remuneration for salaried services rendered outside Cyprus for mor than 90 days in a tax year to a non-Cyprus resident employer
An individual who spends more than 183 days in the Republic is considered as tax resident in the Republic. An individual can be considered as tax resident in the Republic even if the individual spends less than or equal to 183 days in the Republic provided that the following conditions are met within the same tax year:
- Does not spend more than 183 days in any other country.
- Is not tax resident in any other country.
- Spends at least 60 days in the Republic.
- Maintains a permanent home in the Republic (owner or rented).
- Carries on business in the Republic