Updated Personal Income Tax Brackets Under Cyprus Tax Reform
Effective January 1, 2026, Cyprus will introduce new individual income tax rates as part of its ongoing tax reform strategy. These changes are designed to modernize the personal tax system and provide greater relief to lower and middle-income earners.
The key updates include:
- Income over €60,000 will be taxed at 25%
- Tax-free income threshold increases from €19,500 to €21,250
This reform reflects the government’s commitment to a more progressive tax structure, ensuring that higher earners contribute more while expanding relief for those earning below the new threshold.
What This Means for Cyprus Taxpayers
The increase in the tax-free threshold means more income will remain untaxed for individuals earning under €21,250 annually. For those earning above €60,000, the new 25% rate introduces a higher marginal tax obligation, which may affect net income and financial planning.
Whether you’re a salaried employee, freelancer, or business owner drawing personal income, these changes may impact your tax liability and require adjustments to your income strategy.
How Cyprus Tax Accounting Can Help
At Cyprus Tax Accounting, we offer expert guidance on:
- Understanding your new tax obligations
- Structuring your income to optimize tax efficiency
- Filing compliant personal tax returns under the 2026 brackets
- Strategic planning to minimize liability and maximize savings
Our team of experienced Cyprus accountants is here to help you navigate the new tax landscape with clarity and confidence.
Contact Us
For personalized tax advice and planning, reach out to Cyprus Tax Accounting today.
