Company vs self-employed in Cyprus 2026: which leaves you more money?

Estimate only. General information, not tax advice. This calculator compares a self-employed person (sole trader) with a Cyprus limited company owned by the same Cyprus tax resident, using 2026 rates. It ignores family and housing deductions, other income, VAT, pension and medical scheme contributions, the Holiday Fund, special company cases and many other details, and nothing you enter is saved or sent anywhere. Check your real figures with a licensed professional.

Annual profit before owner pay (€)

Turnover minus business expenses, before any salary to yourself. The same amount is used for both routes.

Extra yearly running costs as a self-employed person (€)

Optional. Bookkeeping and tax return fees, for example. Deducted from profit on the self-employed side. Default 0.

Yearly company running costs (€)

Accounting, audit, secretarial and similar. Enter your own figure from your accountant. Default 0, which flatters the company, so please enter a realistic amount. There is no annual government fee for a company any more (see below).

Salary the company pays you as director (€ a year)

Everything else is assumed to be paid out as a dividend (see next field). Use the suggested figure below the result if you want.

Lowest salary you are willing to take for the suggestion (€ a year)

Only used for the “suggested salary” and the breakeven. A salary of 0 pays no social insurance, so it builds no pension or benefit rights. Default 0.

Share of the company’s after-tax profit paid out as dividend (%)

The rest stays in the company and is shown separately. Default 100.

Self-employed occupational category (sets the minimum insurable earnings)

Self-employed persons pay social insurance on the higher of their actual income and the minimum for their category, up to €68,900 a year. Weekly minimums are as published by secondary sources, see the notes below; check your category with the Social Insurance Services.

Advanced settings

I am non-domiciled in Cyprus (exempt from Special Defence Contribution on dividends)
A tax resident who is not “domiciled” in Cyprus under the Special Defence Contribution Law pays no Special Defence Contribution on dividends. GeSY on dividends still applies.

Charge the employer Social Cohesion Fund (2%), Redundancy Fund (1.2%) and HRDA (0.5%) on the director salary
Social insurance and GeSY on the director salary are always charged. Whether a shareholder-director counts as an employee for these three employer funds is disputed in practice, so you can switch them off. Ask your accountant.

How the estimate works

Self-employed: income tax on your profit using the 2026 bands. Social insurance 16.6% on the higher of your actual profit and the minimum for your category, up to €68,900 a year (the weekly ceiling of €1,325 × 52). A further 0.5% HRDA levy applies on the same earnings. GeSY at 4% on profit up to €180,000. Social insurance, HRDA and GeSY are treated as deductible within the one-fifth limit of the Income Tax Law, section 14, the same way our net salary calculator treats an employee’s.
Company: corporate tax 15% on profit after the director salary, the employer contributions on it and your running costs. The salary is taxed through PAYE with the same bands, with the employee social insurance (8.8% up to €68,904) and GeSY (2.65%). The employer also pays social insurance 8.8%, GeSY 2.9%, Social Cohesion Fund 2% (no ceiling), Redundancy Fund 1.2% and HRDA 0.5% on the salary (the last three are switchable).
Dividends: the share of after-tax profit you pay out bears 5% Special Defence Contribution (profits from 2026, none if you are non-domiciled) and 2.65% GeSY, counted against the €180,000 yearly GeSY cap after your salary. There is no income tax on the dividend itself. The “deemed dividend distribution” rule has been abolished for profits from 2026, so profit kept in the company is not taxed again.
Annual company levy: abolished from 2024 (€0 in 2026). Accounting, audit and secretarial costs still exist: enter them under company running costs.
Suggested salary and breakeven: the calculator tries salaries from your lowest salary upward and picks the one with the highest net cash plus retained profit, then repeats this across profit levels to find where each route is ahead.
Not included: family, rent, mortgage-interest and the new personal deductions, other income, VAT, the Holiday Fund and 2026 transitional rules for profits made up to 2025 (dividends from those profits stay under the old 17% Special Defence Contribution if received within six years), directors without a contract of service who may be insured as self-employed, pension and approved medical scheme contributions, and cases where the company, not you, bears more costs.

2026 income tax bands

Chargeable income	Rate	Cumulative tax at top of band
€0 – €22,000	0%	€0
€22,001 – €32,000	20%	€2,000
€32,001 – €42,000	25%	€4,500
€42,001 – €72,000	30%	€13,500
Over €72,000	35%	–

Key 2026 rates used

Item	2026 rate
Corporate tax	15%
Special Defence Contribution on dividends (from 2026 profits)	5% (0% if non-domiciled)
GeSY on dividends and salary (employee)	2.65%, yearly cap €180,000 per person
GeSY, self-employed	4%
GeSY, employer	2.9%
Social insurance, employee and employer	8.8% each, up to €68,904
Social insurance, self-employed	16.6%, up to €68,900
Social Cohesion Fund, employer	2%, no ceiling
Redundancy Fund / HRDA, employer	1.2% / 0.5%, up to the insurable ceiling
HRDA, self-employed	0.5%
Annual company levy	€0 (abolished from 2024)

Need help with your situation?

Use the enquiry chatbot on our homepage and click "Get matched free" to be matched with an independent licensed professional (accountant) who can work out your real numbers and tell you whether a company is worth it for you. Cyprus Tax Connect does not give tax advice. See our legal disclosure and privacy notice.

Frequently asked questions

Is it better to be self-employed or have a limited company in Cyprus in 2026?

It depends on profit, running costs and how much salary you want to take. A company pays 15% corporate tax and then 5% Special Defence Contribution plus 2.65% GeSY on dividends, with no social insurance on dividends, while a self-employed person pays progressive income tax up to 35% plus 16.6% social insurance and 4% GeSY. Company costs such as accounting and audit eat into the advantage at lower profits. Use the calculator above with your own figures.

What tax does a Cyprus company pay on dividends in 2026?

Corporate tax is 15% on profit. A dividend paid out of profits from 2026 bears 5% Special Defence Contribution (zero for a non-domiciled shareholder) and 2.65% GeSY up to the yearly cap of €180,000, counted after any salary. The deemed dividend distribution rule has been abolished for profits from 2026.

Is there still an annual company levy in Cyprus?

No. The Registrar of Companies has confirmed that the annual company fee is abolished from 2024 onwards, so it is €0 in 2026. You will still pay for accounting and an audit, so enter these under company running costs.

How much social insurance does a self-employed person pay in Cyprus in 2026?

16.6% of insurable earnings, which is the higher of actual income and the minimum for the occupational category, up to the yearly ceiling. There is also a 0.5% HRDA levy and 4% GeSY on income up to €180,000.

Is the calculator result my actual tax?

No. It is an estimate for a Cyprus tax resident using 2026 rates. It ignores family and housing deductions, other income, VAT and special cases. Confirm your real numbers with a licensed professional.

Sources

Figures are for 2026 and were checked in October 2026.