Updated
GL-C-04
Glossary · Cyprus PR
Cyprus income tax - the 2026 scale
Tax on individual income: salary, pension, rent and other income
01 / In 30 seconds
The short answer
- What it is
- Tax on individual income: salary, pension, rent and other income
- 2026 scale
- 0% up to €22,000, then 20%, 25%, 30%, and 35% above €72,000
- Rent
- Tax is charged on 80% of the rent under the scale
- Who pays
- Residents on worldwide income, non-residents on Cyprus income
02 / In plain words
What Cyprus income tax means
Cyprus income tax (in Greek Φόρος Εισοδήματος) is paid on individual income: salary, pension, rent. From 01.01.2026 a new scale under the tax reform applies.
The 2026 scale: 0% up to €22,000 a year, then rates of 20%, 25% and 30%, and 35% on income above €72,000. Tax residents pay on worldwide income, non-residents only on Cyprus income, such as rent from a flat on the island.
On rent, tax is charged on 80% of the rent under the general scale, and residents also pay GESY at 2.65%. The defence contribution on rent has been abolished from 2026. A resident may choose to tax a foreign pension at 5% on the amount above €5,000 a year.
A simple example
A client rents out a flat for €12,000 a year. The taxable base is 80%, or €9,600: tax is worked out under the 2026 scale on that amount, not on €12,000.
When you will deal with income tax
- Renting out a flat
- Moving and tax residency
- Foreign pension
- Income from other countries
- Annual tax return
03 / What it covers
How income tax is calculated
2026 scale
- 0% up to €22,000
- 20%, 25%, 30%
- 35% above €72,000
Rent
- Tax on 80%
- Under the general scale
- GESY 2.65% for residents
Foreign pension
- 5% option
- On the amount above €5,000
- For residents
Who pays
- Residents - all income
- Non-residents - Cyprus income
- PR alone has no effect
04 / How it works
How tax on rent is paid
Tax number
Needed for the tax return.
Rent records
Leases and payments for the year.
Calculation
Tax on 80% under the scale.
Tax return
Filed with the Tax Department on time.
Payment
Tax, plus GESY for residents.
05 / Key facts
What matters
01Tax-free
€22,000
Income up to this amount a year is not taxed under the 2026 scale.
02Top rate
35%
The rate on income above €72,000. In between - 20%, 25% and 30%.
03Rent
80%
Tax is charged on 80% of the rent. The defence contribution on rent is abolished from 2026.
04Pension
5%
A resident may pay 5% on a foreign pension above €5,000 a year.
Common mistakes
Using the old scale
From 01.01.2026 a new scale with a €22,000 threshold applies.
Not declaring rent in Cyprus
Income from a Cyprus flat is taxed in Cyprus even for a non-resident.
Taxing the full rent
80% of the rent is taxed, not the whole amount.
06 / Expert advice
How to prepare in advance
If you plan to rent out a flat or move with a pension, tell us early: we will work out the tax under the 2026 scale with an accountant.
What we do for you. With an accountant we work out tax on rent and pensions under the 2026 scale and tell you the filing deadlines.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
0% up to €22,000, then 20%, 25%, 30%, and 35% above €72,000.
Tax on 80% of the rent under the scale, plus GESY 2.65% for residents.
Yes, on Cyprus income.
A resident may pay 5% on the amount above €5,000 a year.
Not from 2026.
No. That depends on tax residency.
Cyprus PR glossary
- Cyprus PR programme →
- Cyprus PR
- ARC (Cyprus alien registration)
- Form MIP2
- Cyprus residence card
- Cyprus PR criteria
- Cyprus Migration Department
- Secure annual income
- Dependent students 18-25
- Cyprus PR monitoring
- Cyprus Department of Lands and Surveys
- Title deed in Cyprus
- DLS search certificate
- Encumbrance in Cyprus
- Separate title deed in Cyprus
- Developer mortgage in Cyprus
- Reservation agreement in Cyprus
- Sale contract in Cyprus
- Contract deposit in Cyprus
- Specific performance law
- Direct title issue to the buyer
- Cyprus transfer fees
- Foreign buyer permit (Cap. 109)
- Planning permit
- Building permit
- Certificate of final approval
- Division permit
- First sale from a developer
- Resale property in Cyprus
- 18-month new building rule
- Commercial property for Cyprus PR
- Short-term rental licence
- VAT on Cyprus property
- Reduced 5% VAT on housing
- Cyprus tax identification code
- Cyprus stamp duty
- Cyprus non-dom status
- GESY health contribution
- €300,000 investment for Cyprus PR
- Investment in a Cyprus company
- Investment in a Cyprus fund
- Cyprus PR government fees
- Source of funds for Cyprus PR
- Cyprus bank account
- Family members in Cyprus PR
- Apostille for Cyprus
- Certifying officer in Cyprus
- Citizen Service Centre (KEP)
- Sworn translator in Cyprus
- Police clearance for Cyprus
- Plan A health insurance
- Power of attorney for Cyprus
- Income affidavit
- Non-employment declaration
- Medical tests for Cyprus PR
- Cyprus citizenship by residence
- All terms →
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