Salaries in Cyprus in 2025

Cyprus continues to attract foreigners with its warm climate and favourable tax system. According to Eurostat, by the end of 2024 the country was home to more than 162,000 non-EU nationals holding valid residence permits. Official data shows that between 2023 and 2024, the authorities issued a total of 48,212 temporary residence permits

The role of foreign talent in the Cypriot economy is steadily growing. For those considering relocation, we prepared a detailed overview of salaries in Cyprus.

Earlier, we wrote about Cost of living in Cyprus.

According to the Cyprus Statistical Service, the average gross monthly salary in the first quarter of 2025 reached €2,509, which is 5.4% higher than during the same period the previous year. The net salary after taxes is approximately €2,100.

The average annual gross income amounts to €30,108 without bonuses or €32,618 including additional payments. In Cyprus, many employees receive a 13th salary as a Christmas bonus, depending on company policy. After taxes, this corresponds to roughly €25,299 and €26,962 per year respectively.

Other sources provide slightly different estimates of the current average salary in Cyprus. Paylab reports that monthly earnings on the island typically range from €1,049 to €3,583, including bonuses. Since these are broad averages, real incomes can be either lower or substantially higher.

Paylab data also highlights income differences by age and gender. Women in Cyprus earn 18.3% less on average, with a median salary of €1,973, compared to €2,334 for men.

Compared with other European countries, the average salary in Cyprus remains below the EU average, which reached €3,155 per month in 2025

The additional Christmas payment — equal to one monthly salary — is a widespread tradition in the private sector, although it is not legally mandatory. To check whether your employer provides this benefit, review the sector’s collective agreement. In some industries, employees may also receive a 14th salary, which is typically 25–30% of the monthly wage, paid at Easter.

Cyprus introduced an official national minimum wage in 2023. Under the latest government regulations, full-time employees must earn at least €1,000 per month (gross). New hires during their first six months of employment are entitled to €900 per month. This places the annual minimum income at €12,000–€13,000, depending on whether the employer provides the 13th or 14th salary.

Two compulsory deductions — social insurance and the national health system contribution — reduce the net income, leaving workers with €10,626–€11,511 per year.

Most sectors fall under the national minimum-wage framework, while specific industries rely on collective or individual agreements to set wage levels. These include:

Despite Cyprus’s favourable tax climate, its minimum wage remains significantly lower than in countries like Germany, which attracts many foreign workers with its higher salaries.

Earnings in Cyprus vary significantly by sector and depend largely on how in-demand a profession is. The highest-paying jobs are found in the IT industry, where a cloud architect, for example, can earn up to €130,000 per year. Other well-paid fields include medicine (around €80,000 annually), engineering, law, and finance (typically €25,000–€60,000 per year).

Mid-level office employees usually earn €20,000–€45,000 annually, while the lowest salaries are found in the hospitality sector — approximately €15,000–€30,000 per year.

Cyprus does not publish official salary statistics at the city level. However, Payscale estimates that the average annual salary in Nicosia is around €29,000 (approximately €2,417 per month), while in Limassol it is higher — about €33,000 per year (roughly €2,750 per month).

Since no official data breaks down salaries by region, these figures should be viewed as general benchmarks rather than precise indicators.

Cyprus applies a progressive income tax system, meaning the tax rate depends on a person’s annual earnings.

The tax is applied incrementally, not to the entire income. For example, if a person earns €65,000 per year, the calculation is divided into brackets:

Cyprus uses the 183-day rule for determining tax residency. However, residency can also be obtained under the 60-day rule if the person:

Cyprus offers several incentives to attract foreign professionals. For example, first-time employees in Cyprus earning at least €55,000 per year may qualify for a 50% income tax exemption on employment income.

Both employers and employees contribute to Cyprus’ social insurance system.

In 2025, GHS contributions are set at:

The contribution cap for GHS is €180,000 in annual income.

If you plan to open a business in Cyprus or already own a company operating there, Cyprus applies a corporate income tax rate of 12.5% — one of the lowest in the European Union. Because of this, Cyprus is considered a tax-efficient jurisdiction for international companies. Inheritance and Gift Tax

Cyprus does not impose inheritance or gift tax. When someone inherits real estate or receives assets as a gift, neither the recipient nor the beneficiary pays any contributions to the state.

However:

This is a special tax applied to certain types of passive income received by Cyprus tax residents.

Rates:

If you plan to live in Cyprus and earn passive income, it is important to check whether SDC applies to you.

Foreign nationals who apply for non-domiciled (non-dom) status and reside in Cyprus for at least 60 days per year are exempt from SDC entirely. This makes Cyprus especially attractive for expats with foreign dividends or investment income.

While basic payroll deductions are similar to those in many European countries, the tax incentives make Cyprus appealing for foreigners.

As in many other European countries, foreign workers in Cyprus are most commonly employed in IT, tourism and hospitality, accounting and finance, construction, and engineering. There are plenty of vacancies across these fields, so finding a job in Cyprus is realistic for those actively searching. Companies that regularly hire international specialists can be found, for example, on the platform Relocate.me.

Do foreigners earn well in Cyprus? It largely depends on the industry. Experienced expats note that many IT professionals from CIS countries earn around €2,500 per month (the minimum salary required to qualify for a work visa) or more.

This income is usually sufficient to cover rent and living expenses for one person in Limassol, while in more affordable cities it can stretch further and provide a more comfortable lifestyle.

While Cyprus is undoubtedly attractive for those seeking lower taxes, most expats relocate to improve their own quality of life — and often to support their families back home. Many move alone and send part of their income abroad. The Korona app helps make regular international money transfers affordable, offering some of the lowest fees on the market.

Reliable and trusted by users worldwide, Korona allows you to send money to more than 60 countries. The transfer process is simple and fast, and funds can be received either to a bank card (where available) or picked up in cash almost instantly. You can even send money to yourself, which can be useful when traveling.

Korona is available for download in the App Store and Google Play.

For several years, we have been sharing detailed insights about life and work in Europe. If you’re interested in these topics, we invite you to explore more articles in our catalogue.