Self-employed tax in Cyprus (2026)

Freelancers and sole traders pay the same income tax bands as employees, but higher social contributions. Here's the picture.

Income tax: same bands

Self-employed individuals are taxed on their profits using the same progressive bands as employees: €22,000 tax-free, then 20%, 25%, 30% and 35%. See the 2026 tax bands for the full table. You deduct allowable business expenses to arrive at taxable profit.

Higher social contributions

Because there is no employer to pay a matching share, self-employed Social Insurance is higher at 16.6%, charged on notional income bands set by the state according to your profession. GESY is 4.00% of income.

What this means for take-home

For the same headline income, a self-employed person usually keeps less than an employee once the higher 16.6% + 4% contributions are applied — though allowable expenses and, in some cases, the flat notional bands can work in your favour. Contributions remain deductible for income tax.

Other obligations

• VAT: registration is required once turnover passes the threshold (currently €15,600).
• Provisional tax: paid in two instalments during the year, based on estimated income.
• Audited or reviewed accounts may be required depending on turnover.