Who qualifies for the 50% tax exemption on salaries over €55,000 in Cyprus?
Short answer
Someone whose first job in Cyprus starts on or after 1 January 2022, who was not resident in Cyprus for at least 15 years in a row before it, and who is paid more than €55,000 a year. Half the salary is then tax-free for up to 17 years.
If you earn less, the 20% exemption can apply instead: 20% of the salary, up to €8,550 a year, for seven years, for a first job in Cyprus that starts by the end of 2027 after three years working abroad for an employer outside Cyprus. The two cannot be combined.
A newer 25% exemption, up to €25,000 a year for seven years, is for former residents who come back to work or set up a business between 2025 and 2030, after seven tax years abroad, and earn more than €30,000 in their first twelve months.
Sources
- Income Tax Law 118(I)/2002, consolidated text (CyLaw) cylaw.org
- Law 17(I)/2026 (CyLaw) cylaw.org
Information, not advice. This answer describes the published position as it stands on 12 October 2026. Requirements, fees and processing times set by the authorities change from time to time; the current position is confirmed before any work starts.
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