Cyprus 2026 Tax Allowances Calculator
Estimate the new 2026 Cyprus household tax allowances and the tax saved, plus the 8% crypto-gains rate and the ex-gratia / termination payment exemption.
These deductions reduce taxable income, not tax directly. The limits apply to gross income: €40,000 for a person living alone and €100,000 for a family, rising with the number of children. A parent living alone with a child residing elsewhere under shared parental responsibility may qualify for a child deduction at the €40,000 ceiling, without automatic doubling. The child count for the family ceiling can differ from the dependent-child deduction count. The tool does not verify eligibility, expense allocation or timely filing.
Disclaimer: These calculators provide general estimates based on the 2026 Cyprus tax framework and standard assumptions. They do not account for every personal circumstance, allowance or exemption and are not tax advice. Speak to us before acting on any figure.
How the 2026 allowances calculator works
This tool applies the new household allowances introduced by the 2026 Cyprus tax reform to your situation, subject to the income ceilings that govern each one, and shows how much they reduce your taxable income — and therefore your tax. The allowances are deductions from taxable income, not credits against tax, so their cash value depends on your marginal rate.
The 2026 household allowances
| Allowance | Maximum deduction | Income test |
|---|---|---|
| Main-residence loan interest or rent | €2,000 | Yes |
| Green / energy-efficiency upgrade | €1,000 | Yes |
| Home insurance against natural disasters | €500 per person across insured homes | No income test |
| Dependent children (1st / 2nd / 3rd+) | €1,000 / €1,250 / €1,500 per eligible parent | Yes (doubled for single parents) |
Worked example: a family of four
Assume a family has two eligible children and €70,000 family income. One eligible parent has €50,000 taxable income before these deductions, qualifies for €2,250 child deductions and incurs at least €2,000 eligible main-home rent. That parent deducts €4,250, reducing taxable income to €45,750 and income tax by €1,275. The other parent is assessed separately. These are deductions, not cash benefits; actual expenses, income ceilings and the other statutory conditions apply.
Other 2026 personal measures
The reform also introduced a flat 8% rate on qualifying crypto-asset gains (see our crypto tax guide), the same 8% on qualifying employee share-scheme benefits, and made specified employment-termination payments tax-free up to €200,000 (20% on the excess). For how the allowances combine with the new bands and the non-dom regime, read the personal income tax guide.
Frequently asked questions
Deductions from taxable income for qualifying main-residence loan interest or rent (up to €2,000), green/energy-efficiency upgrades (up to €1,000), natural-disaster property insurance (€500, no income test), and dependent children (€1,000/€1,250/€1,500 for the 1st/2nd/3rd+ child, doubled for single parents).
Most are. The housing, green and children allowances are available to a single person up to €40,000 of income and a family up to €100,000, rising to €150,000 for families with three or four children and €200,000 for five or more. The natural-disaster home-insurance deduction has no income test. Eligibility depends on the policy, insured home and premiums paid.
The dependent-child allowance is €1,000 for the first child, €1,250 for the second and €1,500 for each third or further child, doubled where the statutory single-parent conditions apply. A person living alone with a child residing elsewhere under shared parental responsibility may qualify under the €40,000 gross-income test without the single-parent doubling.
Article 20E applies 8% to qualifying disposal gains, including sales, gifts, swaps and payments. Mining-acquired assets are excluded; losses offset only same-year crypto disposal gains. Other crypto-related income requires separate classification.
The €200,000 exemption and 20% excess rate apply to the specified employment-termination categories covered by Articles 5 and 20ST. Ordinary salary, accrued leave and other components must be classified separately.
Yes. The allowances reduce your taxable income, which is then taxed under the 2026 bands (tax-free up to €22,000). Use our 2025-vs-2026 calculator for the band effect and this tool for the allowances on top.
Other calculators
Cyprus Corporate Tax Calculator 2026
Estimate your Cyprus company tax at the 2026 rate of 15%.
Cyprus Income Tax Calculator 2026
See your Cyprus income tax across the 2026 bands.
Cyprus 2025 vs 2026 Tax Calculator
Compare 2025 and 2026 tax bands on the same taxable income.
Cyprus Net Salary Calculator 2026
Estimate gross-to-net pay with 2026 tax, employee Social Insurance and GHS.
Want the exact number — and a plan to lower it?
Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.
- Contact during business hours
- Fixed fees, no obligation
- Part of the Philippou Law Firm group