Bosnia and Herzegovina vs Cyprus
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ง๐ฆ Bosnia and Herzegovina โ Entity & Cantonal Taxes
Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities โ Federation of BiH (FBiH) and Republika Srpska (RS) โ have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%โ30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.
๐จ๐พ Cyprus โ Municipal & Community Taxes
Cyprus's 5 districts and 30+ municipalities/communities levy local taxes including immovable property tax (at municipal level after national IPT was abolished in 2017), refuse collection fees, and business licences. Nicosia and Limassol have the highest municipal charges. Cyprus is a major international financial centre offering non-dom status (no tax on dividends/interest for non-domiciled residents for 17 years), which attracts wealthy individuals. The IP Box regime offers 2.5% effective tax on qualifying IP income.
Bosnia and Herzegovina vs Cyprus: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐พ Cyprus has a higher top income tax rate (10โ13% vs 0โ35%). ๐ง๐ฆ Bosnia and Herzegovina is more favourable for high earners.
๐ VAT/Sales Tax: Cyprus has a higher consumption tax (17% vs 5โ19%).
๐ข Corporate Tax: ๐ง๐ฆ Bosnia and Herzegovina offers a lower corporate rate (10% vs 12.5%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ฆ Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 20%), benefiting investors.