Self-employed, or a Cyprus Ltd? See which structure keeps more of what you earn.
Enter your numbers below to compare take-home pay as a sole trader versus operating through a Cyprus limited company, under the tax bands and rates enacted for 2026.
Your numbers
Adjust any figure — results update instantly.
Advanced: voluntary pension / provident fund
Net take-home comparison
After Social Insurance, GeSY, tax, and — for the Ltd route — incorporation running costs.
| Self-Employed | Cyprus Ltd | |
|---|---|---|
| Social Insurance | ||
| GeSY | ||
| Corporate tax | — | |
| Income tax | ||
| SDC on dividends | — | |
| Compliance costs | ||
| Net take-home | ||
| Effective tax rate |
What changed for 2026
The headline measures behind this comparison, as enacted in the 2026 Cyprus tax reform.
Flat corporate income tax rate on company profits, unchanged in headline rate but now sitting inside a materially different personal tax environment.
The personal income tax-free band rises to €22,000, with progressive rates of 20%, 25%, 30% and 35% above it.
Special Defence Contribution stays at 5% for Cyprus-domiciled individuals, and remains 0% for non-domiciled individuals.
4.00% for the self-employed; 2.65% on salary and dividends, plus a 2.90% employer contribution — all capped at €180,000 of total income.
The Deemed Dividend Distribution mechanism is abolished for 2026 profits onward — retained profits no longer trigger a notional dividend charge.
Audit, accounting, and statutory filing costs remain a fixed drag on the Ltd route — this tool scales them with turnover for a realistic comparison.
How this is calculated
- Self-employed Social Insurance is charged on the fixed category-minimum insurable earnings (capped at the annual maximum) regardless of actual profit — not scaled up as profit rises.
- GeSY on salary is calculated first; any remaining headroom under the €180,000 combined cap is then applied to dividend income, so the two never double up.
- Social Insurance and voluntary provident/pension contributions are deductible against income tax only up to 1/5 (20%) of income before this deduction, per Cyprus Income Tax Law; GeSY remains fully deductible under a separate provision.
- Personal income tax is calculated progressively across all five 2026 bands, not as a flat rate on the top band.
- Ltd compliance costs (audit, accounting, statutory filing) scale with turnover; registered office fee is treated as fixed. The Registrar of Companies annual levy was abolished from 2024 onward and is not charged.
- This tool is for indicative planning only and does not constitute tax advice. Figures should be confirmed against your specific circumstances.
Want this run on your actual numbers?
This calculator uses simplified assumptions. Book a short call and we'll model your specific situation, including reliefs this tool doesn't cover.