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Estimate only. General information, not tax advice. This calculator gives a rough figure for a Cyprus tax resident employee using the 2026 rates. It ignores family and housing deductions, pension and medical scheme contributions, other income and many special cases, and nothing you enter is saved or sent anywhere. Check your real tax with a licensed professional.
Read the full guide: Life insurance and tax in Cyprus: company-paid premiums for directors and employees.
| 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% | – |
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 actual tax and how a company-paid insurance policy is treated. Cyprus Tax Connect does not give tax advice. See our legal disclosure and privacy notice.
Yes, for an individual. Premiums the individual pays on a policy for the cover of their own life, or permanent or temporary total or partial disability, are deductible, up to 7% of the amount payable on death or disability. Together with social insurance, GHS and pension fund contributions, the total deduction cannot exceed one fifth of taxable income (Income Tax Law, section 14).
Start with gross pay. Subtract employee social insurance (8.8% up to €68,904) and the GHS contribution (2.65% up to €180,000). Income tax uses the 2026 bands on taxable income after allowed deductions: 0% to €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above.
Yes, as an option. The calculator treats an employer-paid life premium as a taxable benefit in kind that is added to your taxable income, with no social insurance on it. Whether you may also claim the section 14 deduction for it, and whether GHS applies to it, is not confirmed in official guidance, so both are separate switches that are off by default.
No. It is an estimate for a Cyprus tax resident employee using 2026 rates. It ignores family and housing deductions, pension fund and medical scheme contributions, other income and special cases. Confirm your real tax with a licensed professional.
See also our company vs self-employed calculator, our life insurance and tax guide, the basic Cyprus income tax calculator 2026, the moving to Cyprus tax guide and the guide to setting up a Cyprus company, or go back to the Cyprus Tax Connect homepage.
Last reviewed 30 October 2026.