Tax Rate Comparison · 2026

Ireland vs Cyprus: Tax Rates Compared

Compare Ireland and Cyprus on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 40% (Ireland) vs 35% (Cyprus). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Ireland
Top income tax: 40%
Corporate: 12%
VAT: 23% · CGT: 33%
VS
Country B
Cyprus
Top income tax: 35%
Corporate: 12%
VAT: 19% · CGT: 0%

Full Tax Rate Comparison

Tax TypeIrelandCyprusLower Rate
Top Income Tax40%35%Cyprus
Bottom Income Tax20%0%Cyprus
Corporate Tax12.5%12.5%Tie
VAT / GST23%19%Cyprus
Capital Gains Tax33%0%Cyprus
Social Security (Emp)4%8.3%Ireland
Dividend Tax51%2.6%Cyprus
Tax Treaties7468Ireland

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Ireland Take-Home
€70,000
Cyprus Take-Home
€68,950
Annual Difference
+€1,050

Verdict

Overall Tax Burden
Cyprus has a lower overall tax burden
Cyprus scores lower on combined tax burden (21 vs 30). Top income tax: 35% vs 40% in Ireland. Corporate: 12.5% vs 12.5%. Territorial taxation in Cyprus means foreign-source income may be exempt. For high earners and entrepreneurs, Cyprus can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorIrelandCyprus
Territorial TaxationNoYes
Digital Nomad VisaNoYes
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
IrelandSARP30% of income exempt5 years
CyprusNon-DomDividends & interest exempt17 years

Frequently Asked Questions

Which country has lower taxes: Ireland or Cyprus?
Ireland has a top income tax rate of 40% and corporate tax of 12.5%. Cyprus has 35% and 12.5% respectively. On €100k gross, estimated take-home is €70,000 in Ireland vs €68,950 in Cyprus. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Ireland or Cyprus better for expats and digital nomads?
Ireland uses a worldwide tax system and offers the SARP (30% of income exempt, 5 years). Cyprus uses a territorial tax system and offers the Non-Dom (Dividends & interest exempt, 17 years). The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Ireland and Cyprus?
The statutory corporate tax rate is 12.5% in Ireland and 12.5% in Cyprus. Effective rates can differ significantly due to deductions, loss carry-forwards, and R&D credits. Both countries may offer reduced rates or special regimes for SMEs or qualifying businesses.
Ireland Full Tax Guide Cyprus Full Tax Guide More Tax Comparisons Special Tax Regimes
Disclaimer: Rates shown are statutory rates for 2026. Effective rates vary with deductions and individual circumstances. Not tax advice.