Company or self-employed, which keeps more?
Enter the profit you expect to make in a year. See what you'd keep as a sole trader, and what you'd keep running the same work through a Cyprus company that pays you dividends.
- Both setups side by side
- 2026 rates
- Free, no sign-up
What the work earns in a year less its costs, before you pay yourself anything.
For the sole trader side. Your kind of work sets the minimum income for Social Insurance.
Leave at 0 to take everything as dividends. The salary vs dividends calculator finds the best mix.
What a company costs to run that a sole trader doesn't pay: accounting, the yearly audit, Registrar fees. A rough figure; use your own quotes.
As a sole trader
- Profit
- €60,000.00
- Social Insurance (16.6%)
- − €9,960.00
- GeSY (4%)
- − €2,400.00
- Income tax
- − €6,192.00
€3,454.00 a month.
Through a company
- Profit
- €60,000.00
- Company running costs
- − €2,500.00
- Corporate tax (15%)
- − €8,625.00
- Defence contribution on dividends (none for a non-dom)
- − €0.00
- GeSY on dividends (2.65%)
- − €1,295.19
€3,964.98 a month, all as dividends.
The difference
- Sole trader
- €41,448.00
- Company
- €47,579.81
€510.98 a month.
An estimate for the 2026 tax year, not tax advice. It assumes you're Cyprus tax resident, all the profit is paid out as dividends in the same year, and you have no other income, exemption or relief. If you take a salary as a director, you pay Social Insurance on it as an employee. It leaves out VAT, pension and benefit rights, and what it costs to set the company up.
How the numbers work.
The same profit goes through two routes. The table lists the rates each one uses.
- 01As a sole trader, Social Insurance (16.6%) and GeSY (4%) come off the profit, then income tax is charged on the rest, band by band.
- 02Through a company, the running costs and any salary come off first. The company pays 15% corporate tax on what's left and pays the rest to you as dividends.
- 03Dividends carry no income tax. You pay 2.65% GeSY on them, and 5% defence contribution only if you're Cyprus-domiciled.
| Social InsuranceFrom your category's minimum up to €68,904 a year | 16.6% |
|---|---|
| GeSYUp to €180,000 a year | 4% |
| Corporate tax | 15% |
|---|---|
| Defence contribution on dividendsOnly if you're Cyprus-domiciled | 5% |
| GeSY on dividendsWithin the same €180,000 cap as any salary | 2.65% |
| First €22,000 | 0% |
|---|---|
| €22,000 to €32,000 | 20% |
| €32,000 to €42,000 | 25% |
| €42,000 to €72,000 | 30% |
| Above €72,000 | 35% |
Rates checked continuously. Social Insurance from the Ministry of Labour, GeSY from GeSY, and the tax rates from the Tax Department.
Company or self-employed, answered.
Weighing it up for your own work? Ask us on WhatsApp.
Read next
- Self-employed or limited company?How to choose, and when to switch.
- Salary vs dividends in CyprusWhat each costs in 2026, with worked examples.
- Paying yourself from a companySalary, dividends and loans, in the books.
- Salary vs dividends calculatorFind the mix that leaves you the most.
- Company formationStart a Cyprus company with us.
- Self-employed registrationRegister as a sole trader instead.
Ready to start the company?
We form your Cyprus company, and Sumly keeps its books. Or book a call to talk it through first.