2026 Allowances & New Measures
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.
The 2026 reform introduced new household allowances that reduce taxable income. Most are subject to income ceilings — €40,000 for a single person and €100,000 for a family, rising to €150,000 (three or four children) and €200,000 (five or more). The saving shown applies your marginal income-tax rate to the allowances claimed and is indicative only.
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 |
|---|---|---|
| First-home loan interest or rent | €2,000 | Yes |
| Green / energy-efficiency upgrade | €1,000 | Yes |
| Life & medical insurance premiums | €500 | Yes |
| Natural-disaster property insurance | €500 | No income test |
| Dependent children (1st / 2nd / 3rd+) | €1,000 / €1,250 / €1,500 | Yes (doubled for single parents) |
Worked example: a family of four
A married couple with two children, combined income €70,000 (within the €100,000 family ceiling), paying rent and with life insurance, could deduct up to €2,000 (rent) + €500 (insurance) + €1,000 (first child) + €1,250 (second child) = €4,750 from taxable income. At a marginal rate of 30%, that is roughly €1,425 of tax saved for the year — on top of the saving from the wider 2026 bands.
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 ex-gratia / 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 first-home loan interest or rent (up to €2,000), green/energy-efficiency upgrades (up to €1,000), life and medical insurance premiums (up to €500), 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 insurance deduction has no income test.
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, and it is doubled for single-parent families — so a single parent of three could deduct up to €7,500, subject to the family-income ceiling.
The reform introduced a flat 8% rate on gains from crypto-assets held as investment, in defined cases. Where the activity amounts to trading, the profit is taxed as ordinary income instead. The boundary is fact-sensitive — confirm your position before relying on the 8% rate.
Ex-gratia and termination payments are tax-free up to €200,000, with any excess taxed at a flat 20%. This sits alongside the other 2026 personal measures.
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.
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