Cyprus Tax Forms
Tax Forms Guide
Cyprus employee tax forms: TD59, IR1, IR63 and others. Which forms you need, what each field means, and how they relate to your calculator results.
Section 1
What Forms Do I Need?
Answer a few questions to find out which Cyprus tax forms apply to you.
Are you currently employed in Cyprus?
Section 2
TD59 — Claim for Allowances
Color key:
Employee fills (you)Employer fillsNEW 2026TD59 maps almost exactly to our calculator inputs. Submit it to your employer in January or when you start a new job. It tells them how much PAYE to withhold each month.
A1
GHS-subject employment income
Employer fillsYour gross annual salary subject to GHS contributions. Your employer fills this from their payroll records.
Calculator input: Gross monthly salary
A2
Non-monetary benefits / other employment income
Employer fillsCompany car, housing allowance, stock options, and other benefits in kind provided by your employer.
Common mistake: Forgetting to declare company car benefit. It has a standard annual value set by the Tax Department.
A3
Social Insurance Pension / Widow’s pension
Employee fills (you)Social Insurance pension and widow’s pension taxable at normal rates. Tick the box if you wish to have tax deducted for these pensions. See note 4 for election to tax widow’s pension separately via A9.
Common mistake: Forgetting to include widow’s pension from Social Insurance Services here if you are not electing separate taxation in A9.
A4
Gross Rents
Employee fills (you)Gross rental income for the year. If declared here, you can claim capital allowances, interest, and 20% of gross rents as deductions in B4.
A5
Income from other sources
Employee fills (you)Catch-all for other income: previous employment, pensions from other sources, partnerships, trade, interest, dividends, life insurance redemptions. You must submit a temporary declaration (code 0200) via the Tax portal for non-employment income by end of July.
A7
Non-taxable income
Employee fills (you)Income that is specifically exempt by law: e.g. lump-sum pension payment, gratuity on retirement, certain compensation.
A9
Election to pay tax on widow's pension
Employee fills (you)Optional election for widows receiving a pension to have it taxed under PAYE rather than filing separately.
A10
Special 8% rate election (AIF/UCITS income)
Employee fills (you)Election to be taxed at the flat 8% rate on income from Alternative Investment Funds or UCITS, instead of progressive rates.
B1
Subscriptions to Unions or Professional bodies
Employee fills (you)Subscriptions to trade unions or professional bodies. Employee fills with receipts.
B2
50% or 20% new-resident exemption
Employee fills (you)If you qualify as a new resident, 50% of your income (if above €55,000/year) or 20% (capped at €8,550) can be excluded from taxable income.
Common mistake: Confusing the 50% and 20% schemes. They have different eligibility rules. The 50% requires salary above €55,000.
Calculator: Exemption Type selector. Details at /math#exemptions
B3
Home insurance for natural disasters
Employee fills (you)Insurance premiums for natural disaster coverage on your primary residence. Up to €500/year. Employee fills with policy documentation.
B4
Rented property deductions
Employee fills (you)Capital allowances, loan interest, and 20% of gross rents for rented property. Employee fills with supporting evidence.
B5
Other deductions
Employee fills (you)Other deductions supported by documentary evidence.
B6
Intermediary calculation
Employer fillsEmployer calculates: A8 minus total of B1 through B5.
B7
Pension, Provident, Health & SI Funds + Medical Fund
Employee fills (you)Combined contributions to approved pension, provident, health, social insurance funds, and medical fund. Together with B8 and B9, capped at 1/5 of taxable income.
Common mistake: Claiming contributions to non-approved or foreign funds. Only Cyprus Tax Department approved funds qualify.
B8
Contributions to GHS
Employee fills (you)GHS contributions at 2.65% of gross salary with no cap. Employer calculates and deducts automatically.
B9
Life/disability insurance premiums
Employee fills (you)Life or disability insurance premiums. Limited to 7% of the capital sum insured. Together with B7 and B8, capped at 1/5 of taxable income.
B10
Child allowances
Employee fills (you)NEW 2026Annual deduction per child: €1,000 for 1st child, €1,250 for 2nd, €1,500 for 3rd and each additional. Single parents receive double the allowance. Subject to family income thresholds.
Common mistake: Claiming if your family income exceeds the threshold (€100k for 1–2 children, €150k for 3–4, €200k for 5+).
Calculator: Number of children in wizard. Details at /math#allowances
Or calculate step by step in the Deductions Guide
B11
Rent or housing loan interest
Employee fills (you)NEW 2026Rent paid for primary residence or interest on housing loan. Up to €2,000/year. Income-tested.
Calculator: Housing field. Details at /math#allowances
B12
Energy upgrade / electric vehicle
Employee fills (you)NEW 2026Expenditure on energy upgrades (e.g. solar panels) or electric vehicle purchase. Up to €1,000/year. Income-tested.
Common mistake: Claiming without receipts or invoices. Only qualifying green/EV expenditure is eligible.
Calculator: Green/EV field. Details at /math#allowances
Or calculate step by step in the Deductions Guide
B13
Investment in innovative companies
Employee fills (you)Investment in approved innovative companies. Deductible up to 50% of taxable income.
Common mistake: Investing in non-approved companies or exceeding the 50% income cap.
Part C is entirely filled by your employer using the information from Parts A and B. You do not write anything here, but understanding it helps you verify your payslips.
C1
Tax on chargeable income
Employer fillsThe income tax computed by applying the progressive bands (0% up to €22,000; 20% on €22k–€32k; 25% on €32k–€42k; 30% on €42k–€72k; 35% above €72k) to chargeable income (B16).
Matches calculator Annual PAYE tax amount before monthly split.
C2
Annual PAYE computed
Employer fillsThe progressive income tax on C1 using current tax bands: 0% up to €22,000; 20% on €22k–€32k; 25% on €32k–€42k; 30% on €42k–€72k; 35% above €72k.
Matches calculator annual PAYE total. The /math page shows the full band breakdown.
C3
Monthly PAYE to withhold
Employer fillsC2 divided by months remaining in the year. This is the amount your employer deducts from your payslip each month and remits to the Tax Department.
Common mistake: If you submit TD59 mid-year, the employer recalculates monthly PAYE for remaining months. It may be higher.
C4
Annual GHS deduction
Employer fillsAnnual deduction for GHS at 2.65% of emoluments, stopping at the €180,000 ceiling.
Section 3
TD1/IR1 — Annual Tax Return
From 2026, the filing threshold drops to €22,000 gross annual income. If you earn above this, you must file an IR1 by 31 July of the following year, even if your employer has withheld the correct PAYE.
What it is
IR1 (also called TD1) is the Cyprus Personal Income Tax Return. It reports your worldwide income for the year, allows final adjustments to deductions, and settles any difference between PAYE withheld and actual tax owed.
Who must file
Any Cyprus tax resident with gross annual income above €22,000 (2026 threshold). This includes income from employment, self-employment, rentals, dividends, and foreign sources.
Key facts
Deadline
31 July of the year following the tax year
How to file
Online via TAXISnet only. Paper filing not accepted.
Platform
taxisnet.mof.gov.cy
Documents needed
IR63 from each employer, payslips, bank statements, overseas income docs
Common mistakes
• Omitting foreign income (dividends, interest, rental from abroad). Cyprus taxes worldwide income for residents.
• Missing the 31 July deadline. Late filing incurs penalties and interest.
• Not reconciling with IR63 figures. Mismatches trigger audits.
• Claiming deductions without supporting receipts
Section 4
TD63/IR63 — Certificate of Emoluments
You do not fill this form. Your employer sends it to you. Think of it as your official annual earnings statement.
What it contains
Gross income
Total gross salary for the year
SI withheld
8.8% of gross up to the cap
GHS withheld
2.65% of gross
PAYE withheld
Total income tax deducted
Net paid
Gross minus all deductions
Your calculator results should closely match the IR63 figures. Use this as a cross-check. If they differ significantly, check your start month, exemption type, or personal allowances in the calculator.
When you receive it
Your employer must issue IR63 by 30 April each year for the previous tax year. You typically receive it in March or April. Keep it: you need it to file IR1.
Section 5
Other Forms
| Form | Purpose | When needed |
|---|---|---|
TD38 | Non-domiciled SDC exemption declaration | If you are non-domiciled and receive dividend, interest, or rental income subject to SDC |
TD2001 | TIN (Tax Identification Number) registration | First time registering with the Cyprus Tax Department. Required before filing any return. |
TD7 / IR7 | Employer's PAYE annual return (all employees' income) | Employer only, filed by 31 May. For reference if you want to see what your employer reports. |
Section 6
Calculator-to-Form Field Mapping
Every input in the Cyprus Tax Calculator corresponds to a specific field on the TD59 form. Use this table to translate your calculator inputs into what you write on the form.
| Calculator Input | TD59 Field | Part | Note |
|---|---|---|---|
Gross monthly salary | A1 | Part A | Employer fills from payroll |
Tax exemption (50%/20%) | B2 | Part B | Employee selects; employer applies |
Number of children | B10 | Part B | NEW 2026NEW 2026 |
Housing (rent or mortgage interest) | B11 | Part B | max €2,000/yearNEW 2026 |
Green/EV expenses | B12 | Part B | max €1,000/yearNEW 2026 |
Life insurance premium | B9 | Part B | 7% cap on capital sum; 1/5 combined cap with SI+GHS |
SI deduction (calculated) | B7 | Part B | Employer calculates automatically |
GHS deduction (calculated) | B8 | Part B | Employer calculates automatically |
Annual PAYE total | C1–C2 | Part C | Employer computes from A and B |