Eurostat, the EU’s statistical office, has released a new study analyzing wage levels across EU countries in 2024.
It turns out that Cyprus is a very attractive place to live and work. The island nation ranks among the highest in the EU when it comes to net salary — the income left after all taxes and social contributions are deducted.
Specifically, single employees in Cyprus retained 84.4% of their gross salary last year, compared to the EU average of 68.6%. This means that, unlike many other European countries, single Cypriots keep most of what they earn.
The benefits of Cyprus’s tax system become even more striking when compared with countries like Belgium (60.3%), Germany (62.6%), or Denmark (64.3%), where taxes and contributions consume a large portion of income.
Outside of Cyprus, only Switzerland reported a net rate above 80%.
Eurostat also pointed out that for families with one working parent and two children, the impact of tax systems varies greatly across Europe. Some countries offer generous allowances, while others show barely any difference between families and childless taxpayers.
Across the EU, such families retain 82.6% of their gross income on average, but disparities are significant.
For example:
- In Romania, net income is only 70.4%.
- In contrast, Slovakia (107.1%) and Poland (102.5%) report net incomes exceeding gross salary, thanks to generous family benefits and negative income tax mechanisms providing additional financial support.
- Over 90% of gross income is retained by families in Switzerland, Czech Republic, Luxembourg, and Portugal.
On the other end, in Turkey, Denmark, and Finland, families take home less than 75% after deductions.
The biggest differences in net income between single, childless workers and families with children are seen in:
- Slovakia: +31.2 percentage points
- Poland: +26.6 p.p.
- Luxembourg: +22.4 p.p.
- Belgium: +19.8 p.p.
Meanwhile, countries offering minimal additional support to families include:
- Greece: +2.4 p.p.
- Cyprus: +4.3 p.p.
- Finland: +4.6 p.p.
- Norway: +4.8 p.p.
- Sweden: +5.9 p.p.
In summary, Cyprus stands out for its flexible and transparent tax system, especially beneficial for professionals and young families.
Key advantages include:
- Moderate taxes and affordable social contributions
- State support for families without overwhelming bureaucracy
- Strong take-home pay even on average wages
As more Europeans seek countries with a healthy balance of income and living costs, Cyprus emerges as an excellent destination for relocation and work.
It’s also a strong signal for investors, freelancers, and digital nomads: Cyprus offers a high quality of life, reasonable expenses, and a stable financial environment.