Published: 17.05.2026
From 1 January 2026, Cyprus applies revised personal income-tax bands, with a tax-free threshold of €22,000 and a top rate of 35%. The reform retained the 183-day and 60-day tax-residence tests, extended the non-dom regime and provides employment-income reliefs for people taking up their first job in Cyprus, including a 50% exemption subject to conditions.
For people relocating, the tax position must be assessed by more than the headline rate: residence status, domicile and the type of income also matter. Subject to the conditions, new employees with higher salaries may qualify for a 50% exemption on first-employment income for up to 17 tax years, while separate reliefs cover other categories of newcomers. Tax residence arises under either the 183-day test or the 60-day test, which requires a home and a connection to employment or business in Cyprus, and residents are generally taxed on worldwide income. According to the sources, this is a major financial rule for workers, entrepreneurs and affluent newcomers and should be modelled before moving.