Cyprus Company vs Self-Employed Calculator [2026]

Quick Answer

For most incomes above EUR 40,000, a Cyprus Ltd with Non-Dom dividends is the most tax-efficient structure. The company pays 15% corporate tax, and the Non-Dom director pays only 2.65% GESY (capped at EUR 4,770) on dividends - no income tax. Self-employed individuals pay progressive income tax up to 35% plus 4.70% GESY. A Cyprus Ltd with salary avoids corporate tax but incurs income tax and GESY.

Cyprus Company vs Self-Employed Calculator 2026

Compare your net income across three structures: self-employed sole trader, Cyprus Ltd with salary, and Cyprus Ltd with Non-Dom dividends. All figures use 2026 tax rates.

Annual pre-tax profit / income (EUR)

Self-employed

Income tax + GESY as sole trader

Effective rate

25.1%

Income tax- €16,300

GESY- €3,760

Net income€59,940

Cyprus Ltd (salary)

15% corp tax avoided - salary to director

Effective rate

24.8%

Income tax- €15,488

GESY- €4,379

Net income€60,133

Cyprus Ltd (Non-Dom dividends)Best

15% corp tax + 2.65% GESY on dividends

Effective rate

17.3%

Corporate tax (15%)- €12,000

GESY- €1,802

Net income€66,198

Non-Dom dividends is the optimal structure for this income level. This requires: (1) Cyprus tax residency - 60-day or 183-day rule, (2) Non-Dom status application, (3) a Cyprus Ltd with real substance. Setup typically takes 2-4 weeks.

The salary scenario assumes the company pays the director a salary equal to gross profit minus employer GESY (2.90%). Social insurance (~8.3% employee, ~8.8% employer) is not included in any scenario. Consult a Cyprus tax advisor before choosing a structure. Get a structure review.

The most tax-efficient structure for most professionals relocating to Cyprus is a Cyprus limited company (Ltd) combined with Non-Dom residency status. The company pays 15% corporate tax on profits. The Non-Dom director then withdraws the after-tax profit as dividends, paying only 2.65% GESY (capped at EUR 4,770 per year) - no income tax, no Special Defence Contribution. Compare this to self-employment, where income tax reaches 35% above EUR 72,000, plus 4.70% GESY on net profit. Setting up a Cyprus Ltd typically takes 5-10 business days and costs EUR 1,050-2,000 in one-off fees.