Freelancer vs employee take-home in Cyprus on €40,000 (2026)
On a gross of €40,000 in Cyprus, a employee keeps the most — €32,565 net, €1,166 more than the next-best option. Here is the full breakdown at 2026 rates.
| Setup | Net / year | Effective rate |
|---|---|---|
| Employee | €32,565 | 19% |
| Company | €31,399 | 22% |
| Freelancer | €29,808 | 25% |
Other incomes in Cyprus
Same income, other countries
Rates: Cyprus 2026.1-verified, 2026. Company path modelled as pure dividend (no salary drawn); expatriate income-tax exemptions and the 1/5-of-income deduction cap are not modelled. Figures are estimates from a deterministic engine — not tax advice.