Cyprus tax calculator 2026
Corporate tax rose from 12.5% to 15% on 1 January 2026.
For tech and gamedev companies the picture is more nuanced: IP Box, the expat exemption and non-dom status are all preserved.
Enter your numbers — we'll calculate 2025 → 2026 using the enacted rates.
Studio parameters
€
%
eff. rate 12.5%
+€60 000
eff. rate 3.0%
was 12.5% in 2025
+€17 500 vs 2025
tax 3.0% of profit
Corporate tax breakdown · 2025 → 2026
| Item | 2025 | 2026 | 2026 no IP Box |
|---|---|---|---|
| Taxable profit | €1 200 000 | €1 200 000 | €1 200 000 |
| IP Box deduction (80% × 100%) | −€960 000 | −€960 000 | — |
| Tax base | €240 000 | €240 000 | €1 200 000 |
| Corporate tax rate | 12.5% | 15.0% | 15.0% |
| Corporate tax | €30 000 | €36 000 | €180 000 |
| Effective rate | 2.5% | 3.0% | 15.0% |
| Net profit | €1 170 000 | €1 164 000 | €1 020 000 |
With IP Box the reform adds just €6 000 per year. Without IP Box you would pay €144 000 more — IP Box remains the key lever.
Employee parameters
€
%
burden 12.1%
+€400
burden 11.6%
+€400 vs 2025
was 12.1% in 2025
≈ after all deductions
Gross composition · 2026
Take-home
€62 302
Income tax
€10 046
Social ins. 8.8%
€5 532
GESY 2.65%
€2 120
Tax and deductions breakdown · 2025 → 2026
| Item | 2025 | 2026 |
|---|---|---|
| Gross | €80 000 | €80 000 |
| Taxable income | €80 000 | €80 000 |
| − Contribution deduction (SI+GESY, ≤1/5) | −€7 730 | −€7 847 |
| − Personal deductions 2026 (Art. 14B) | — | — |
| Tax base | €72 270 | €72 153 |
| Income tax | −€10 181 | −€10 046 |
| Social insurance 8.8% | −€5 532 | −€5 532 |
| GESY 2.65% | −€2 120 | −€2 120 |
| Provident fund | — | — |
| Take-home | €62 167 | €62 302 |
| Effective burden | 22.3% | 22.1% |
Income tax is calculated on the base after deducting contributions (SI+GESY, 1/5 cap), not on gross. After the reform take-home is +€400 per year.
Option grant parameters
€
€
rate up to 35%
−€27 000
rate 8%
−€27 000 vs 2025
less tax on the grant
was 35.0% in 2025
Option grant tax · 2025 → 2026
| Item | 2025 | 2026 |
|---|---|---|
| Grant value | €100 000 | €100 000 |
| Annual salary cap (2×) | — | €160 000 |
| Within cap · rate 8% | — | €100 000 |
| Above cap · rate 35% | — | — |
| Tax rate | up to 35% | 8% |
| Grant tax | €35 000 | €8 000 |
| Net received | €65 000 | €92 000 |
Grant is within the cap: tax drops from €35 000 to €8 000 — saving €27 000. Equity in Cyprus has become a real hiring tool.
Founder dividend parameters
€
tax 19.2%
+€24 000
tax 7.2%
+€24 000 vs 2025
SDC 5% + GESY 2.65%
was 19.2% in 2025
Dividend tax · 2025 → 2026
| Item | 2025 | 2026 |
|---|---|---|
| Dividends | €200 000 | €200 000 |
| SDC (domicile · 17% → 5%) | −€34 000 | −€10 000 |
| GESY 2.65% (ceiling €180k) | −€4 770 | −€4 770 |
| Total tax | −€38 300 | −€14 770 |
| Net received | €161 700 | €185 230 |
| Effective rate | 19.2% | 7.4% |
Cutting SDC from 17% to 5% saves €24 000 per year on this amount. GESY 2.65% (ceiling €180k) remains — total burden 7.2%.
Calculated using Cyprus tax rates effective 1 January 2026 (Government Gazette Αρ. 5070, 31.12.2025). Not legal or tax advice.
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