The best way to understand Cyprus tax is through real numbers. Here are four detailed case studies showing exactly how much different types of taxpayers pay in Cyprus in 2026 — and how that compares to France, Germany, and the UK.
In Cyprus, a non-dom founder extracting €200,000/year from their company pays a maximum of €4,770 in GESY — the only tax on dividend income. This is the standard application of Cyprus non-dom law, not a special deal.
Example 1: Freelance Consultant, €60,000 Revenue, Non-Dom
Profile: Independent consultant, moved to Cyprus 18 months ago, has non-dom status. Runs a Cyprus Ltd. Takes dividends, no salary.
Corporate Level
| Item | Amount |
|---|---|
| Consulting revenue | €60,000 |
| Deductible expenses (accountant, software, travel) | €8,000 |
| Taxable profit | €52,000 |
| Corporation tax (15%) | €7,800 |
| Net after-tax profit | €44,200 |
Personal Level (Dividends, Non-Dom)
| Item | Amount |
|---|---|
| Dividend received | €44,200 |
| Income tax | €0 |
| SDC (non-dom) | €0 |
| GESY (2.65%) | €1,171 |
| Net in pocket | €43,029 |
Total Tax Summary
| Tax | Amount |
|---|---|
| Corporation tax | €7,800 |
| GESY | €1,171 |
| Total | €8,971 |
| Effective rate on €60k revenue | 15.0% |
Comparison: Same Freelancer in France
In France as a SASU operator:
- Corporate tax: ~€10,000 (25%)
- Dividends PFU 30% on ~€42,000: ~€12,600
- Total: ~€22,600 (37.7% effective)
Cyprus saves approximately €13,600/year.
Example 2: Founder, €200,000 Dividends, Non-Dom
Profile: Serial founder, sold previous company, now lives in Cyprus receiving dividends from a holding structure. Non-dom status confirmed.
The Dividend Tax Calculation
| Tax Type | Rate | Amount |
|---|---|---|
| Income tax | 0% | €0 |
| SDC | 0% (non-dom) | €0 |
| GESY | 2.65% (capped at €180k base) | €4,770 |
| Total | €4,770 | |
| Effective rate | 2.38% |
Comparison: €200,000 Dividends by Country
| Country | Total Tax | Effective Rate |
|---|---|---|
| Cyprus (non-dom) | €4,770 | 2.38% |
| Portugal (NHR ended 2024) | ~€56,000 | ~28% |
| UK | ~€67,500 | ~33.75% |
| France | ~€60,000 | ~30% |
| Germany | ~€52,750 | ~26.4% |
| Netherlands (Box 3) | ~€13,800 | ~6.9% |
Annual saving vs France: €55,230. Over 10 years: €552,300.
Example 3: SaaS Founder, €500,000 Qualifying IP Revenue, IP Box
Profile: UK founder of a SaaS product, moved to Cyprus 2 years ago. All company revenue from SaaS subscriptions (qualifying copyrighted software). 100% shareholder with non-dom status.
Corporate Level with IP Box
| Item | Amount |
|---|---|
| SaaS subscription revenue | €500,000 |
| Operating expenses | €150,000 |
| Net qualifying IP income | €350,000 |
| IP Box deduction (80%) | €280,000 |
| Taxable income after IP Box | €70,000 |
| Corporation tax (15%) | €10,500 |
| Net after-tax profit | €339,500 |
Effective corporate tax rate on €500k revenue: 2.1%
Personal Level (Dividends, Non-Dom)
| Item | Amount |
|---|---|
| Dividend | €339,500 |
| Income tax | €0 |
| SDC | €0 |
| GESY (capped at €4,770) | €4,770 |
| Net in pocket | €334,730 |
Total Tax Summary
| Tax | Amount |
|---|---|
| Corporation tax | €10,500 |
| Founder GESY | €4,770 |
| Total | €15,270 |
| Effective rate on €500k revenue | 3.05% |
Comparison: Same SaaS in the UK
UK founder (company + salary + dividends):
- Corporate tax at 25%: ~€62,500
- Higher-rate dividend tax (33.75%): ~€45,600
- Total: ~€108,100 (21.6% effective)
Cyprus saves approximately €93,000/year. Over 5 years: €465,000.
Example 4: Employee, €80,000 Salary
Profile: Senior software engineer employed by a Cyprus company. Not a founder. No equity. Receives €80,000 gross annual salary.
Annual Tax and Contributions
| Item | Calculation | Amount |
|---|---|---|
| Gross salary | €80,000 | |
| Income tax | Bands applied | ~€16,460 |
| GESY (2.65%) | €80,000 × 2.65% | €2,120 |
| Social Insurance (8.8%, capped at €66,612) | €66,612 × 8.8% | €5,862 |
| Total deductions | €24,442 | |
| Net take-home | €55,558 | |
| Effective rate | 30.6% |
Income Tax Breakdown
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| €0 – €22,000 | 0% | €22,000 | €0 |
| €22,001 – €28,000 | 20% | €6,000 | €1,200 |
| €28,001 – €36,300 | 25% | €8,300 | €2,075 |
| €36,301 – €60,000 | 30% | €23,700 | €7,110 |
| €60,001 – €80,000 | 35% | €20,000 | €7,000 |
| Total income tax | €17,385 |
Employee Tax Comparison by Country
| Country | Gross | Take-Home | Effective Rate |
|---|---|---|---|
| Cyprus | €80,000 | €55,558 | 30.6% |
| France | €80,000 | ~€48,000 | ~40% |
| Germany | €80,000 | ~€46,500 | ~42% |
| UK | £80,000 | ~£53,500 | ~33% |
| Netherlands | €80,000 | ~€51,500 | ~35% |
Key insight: For employees on salary, Cyprus is competitive but not transformative — the difference versus the UK is modest. The real Cyprus advantage is for entrepreneurs extracting profits via dividends.
The Critical Comparison: Salary vs Dividends in Cyprus
| €80,000 received as... | Tax Paid | Net Received |
|---|---|---|
| Salary | €24,442 | €55,558 |
| Dividends (non-dom) | €2,120 | €77,880 |
| Difference | €22,322 | €22,322 more |
Taking €80,000 as dividends instead of salary puts an extra €22,322 in your pocket every year. Over 10 years, that is €223,220 in additional wealth. Use our salary vs dividends calculator to model your exact situation.
Find ICPAC-registered accountants and tax advisors at CyprusDesk.
Disclaimer: These calculations are illustrative estimates for 2026. Individual circumstances, deductions, treaty positions, and residency status affect actual tax liability. Always consult a qualified ICPAC-registered advisor. Find professionals at CyprusDesk.