Tax Rate Comparison · 2026

Spain vs Cyprus: Tax Rates Compared

Compare Spain and Cyprus on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 47% (Spain) vs 35% (Cyprus). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Spain
Top income tax: 47%
Corporate: 25%
VAT: 21% · CGT: 26%
VS
Country B
Cyprus
Top income tax: 35%
Corporate: 12%
VAT: 19% · CGT: 0%

Full Tax Rate Comparison

Tax TypeSpainCyprusLower Rate
Top Income Tax47%35%Cyprus
Bottom Income Tax19%0%Cyprus
Corporate Tax25%12.5%Cyprus
VAT / GST21%19%Cyprus
Capital Gains Tax26%0%Cyprus
Social Security (Emp)6.4%8.3%Spain
Dividend Tax26%2.6%Cyprus
Tax Treaties10368Spain

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Spain Take-Home
€63,050
Cyprus Take-Home
€68,950
Annual Difference
+€5,900

Verdict

Overall Tax Burden
Cyprus has a lower overall tax burden
Cyprus scores lower on combined tax burden (21 vs 36). Top income tax: 35% vs 47% in Spain. Corporate: 12.5% vs 25%. 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

FactorSpainCyprus
Territorial TaxationNoYes
Digital Nomad VisaYesYes
Wealth TaxYesNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
SpainBeckham Law24% flat rate6 years
CyprusNon-DomDividends & interest exempt17 years

Frequently Asked Questions

Which country has lower taxes: Spain or Cyprus?
Spain has a top income tax rate of 47% and corporate tax of 25%. Cyprus has 35% and 12.5% respectively. On €100k gross, estimated take-home is €63,050 in Spain vs €68,950 in Cyprus. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Spain or Cyprus better for expats and digital nomads?
Spain uses a worldwide tax system and offers the Beckham Law (24% flat rate, 6 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 Spain and Cyprus?
The statutory corporate tax rate is 25% in Spain 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.
Spain 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.