Compare the total tax cost of different pay structures for a Cyprus company director. Includes income tax, social insurance, GESY, SDC, and corporation tax.
Why salary matters: Salary is a deductible expense for the company, reducing taxable profit and corporation tax. But it triggers income tax and social insurance, which can be steep.
€19,500 salary: This is the income tax exemption threshold in Cyprus — you pay 0% income tax on the first €19,500. Taking a salary up to this amount is usually tax-efficient.
Non-Dom advantage: Non-domiciled residents pay 0% SDC on dividends (vs 17% for domiciled residents). For high-dividend scenarios, this is a significant saving.
Social insurance ceiling: SI contributions are capped at ~€60,000 of annual salary. Above this ceiling, additional salary doesn't increase SI costs.