Our Finance Department is preparing a seminar that will be offered to employees next week on Thursday 15/01/2026 (time and room to be announced) so to explain the reforms that on 22nd December, the Cyprus Parliament approved.
Major tax changes in relation to personal taxation, with effect from 01st January 2026. Submission of income tax returns becomes mandatory for all individuals who are Cyprus tax residents aged 25 and above, regardless of whether they have taxable income.
1.Updated Tax Brackets
The tax-free threshold increases from 19,500 to 22,000 with revised tax brackets:
Chargeable Income Tax Rate. Cumulative tax
0- 22,000 0% -
22,000-32,000 20% 2,000
32,000-42,000. 25% 2,500
42,000-72,000 30% 9,000
Over 72,000 35%
2. Family Tax Deductions
New tax deductions are available for families with children (per parent):
3. Housing and Environmental Deductions
Tax deductions will be available for:
Attached you may find the revised TD form (unfortunately currently available only in Greek).
Regards,
Finance Department
Major tax changes in relation to personal taxation, with effect from 01st January 2026. Submission of income tax returns becomes mandatory for all individuals who are Cyprus tax residents aged 25 and above, regardless of whether they have taxable income.
1.Updated Tax Brackets
The tax-free threshold increases from 19,500 to 22,000 with revised tax brackets:
Chargeable Income Tax Rate. Cumulative tax
0- 22,000 0% -
22,000-32,000 20% 2,000
32,000-42,000. 25% 2,500
42,000-72,000 30% 9,000
Over 72,000 35%
2. Family Tax Deductions
New tax deductions are available for families with children (per parent):
- € 1,000 for each parent for the 1st child
- € 1,250 for each parent for the 2nd child
- € 1,500 for each parent for the 3rd and each additional child.
3. Housing and Environmental Deductions
Tax deductions will be available for:
- rent expenses or mortgage interest paid on a primary residence up to € 2000.
- energy updates up to €1,000
- home insurance against nature disasters up to € 500.
Attached you may find the revised TD form (unfortunately currently available only in Greek).
Regards,
Finance Department