20% tax exemption
For employees starting their first Cyprus employment and meeting the relevant tax residence conditions.
FINLAB TAX TOOLS
Check your Cyprus employment tax exemption
Two short quizzes give an initial indication of whether the 20% or 50% employment income exemption may apply to you.
ANSWERS ARE NOT STORED
Choose a check
50% tax exemption
For employees above the relevant annual remuneration threshold with a qualifying non-residence history.
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This result is an initial indication, not tax advice. Final eligibility depends on the full facts, current Cyprus law and Tax Department practice.
CYPRUS EMPLOYMENT TAX RELIEF
Cyprus employment income exemption: 20% or 50%
Cyprus tax law provides employment income exemptions for certain employees who start work in the Republic after living or working abroad. The relevant regime depends on the employment start date, annual remuneration and the employee’s tax and employment history.
20% employment exemption
Under the current regime, the exemption may cover 20% of employment remuneration, capped at €8,550 per tax year. Eligibility typically depends on first employment in Cyprus, overseas employment before relocation and the start date; the relief may run for up to seven years.
50% employment exemption
The exemption may cover 50% of employment remuneration where annual remuneration exceeds the applicable threshold and the required pre-employment non-residence history is met. For current new cases, the threshold is €55,000 and the relief may run for up to 17 years.
What is needed for a review
The review normally requires employment and relocation dates, annual remuneration, prior-year tax residence and details of any earlier Cyprus employment. Final eligibility is assessed from the documents and circumstances of the individual employee.