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Moving to Cyprus for work: the 50%, 25% and 20% income-tax reliefs

New residents taking up their first Cyprus employment can exempt part of their salary from income tax — 50%, 25% or 20%, depending on earnings and history. Three regimes, you claim only one. Here is which fits.

29 October 20262 min read
Seafront and marina in Cyprus

One of the real draws for professionals moving to Cyprus: a new resident taking up first employment can exempt a slice of salary from income tax. The figures that look contradictory online are actually three separate regimes that coexist — you claim whichever one you qualify for, and only one.

RegimeExemptionWhoDuration
50% (high earner)50% of employment incomeRemuneration over €55,000/yr; not Cyprus tax-resident for 15 years before17 tax years
25% («brain gain»)25%, capped €25,000/yrIncome over €30,000/yr, arriving 2025–2030, with prior non-residencyUp to 7 years
20% (lower tier)20%, capped €8,550/yrFirst Cyprus employment after working abroad, 3 years' prior non-residency7 tax years
Per PwC and KPMG (2026), which agree on the figures; the 2026 reform kept these rather than restructuring them. There is no 35% exemption — that figure was a misreading.

How to choose. A senior hire over €55,000 takes the 50%/17-year relief; someone on €30,000–55,000 takes the 25% «brain gain» if they qualify, otherwise the 20%. The 50% and the 25%/20% reliefs are mutually exclusive.

Two things have to be true first: you must be a Cyprus tax resident (the 183-day or 60-day rule), and you must be allowed to work — EU citizens have labour-market access from day one, while third-country nationals need a work permit, usually through a Foreign Interest Company (see the work and business guide). The full tax picture is in the taxes guide.

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