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Cyprus vs Germany
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡¨πŸ‡Ύ Cyprus
vs
πŸ‡©πŸ‡ͺ Germany
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–35%
35% top; non-dom regime reviewed but maintained
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5–19%
19% standard maintained
No change
7–19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
12.5%
12.5% competitive; IP Box reform for Pillar Two compliance
No change
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
20%
20% immovable property; shares exempt
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~23.8%
GeSY system bedding in; contribution rates stable
No change
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
State, Regional & Local Taxes

πŸ‡¨πŸ‡Ύ Cyprus β€” 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.

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Cyprus vs Germany: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (0–35% vs 14–45%). πŸ‡¨πŸ‡Ύ Cyprus is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (5–19% vs 7–19%).

🏒 Corporate Tax: πŸ‡¨πŸ‡Ύ Cyprus offers a lower corporate rate (12.5% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¨πŸ‡Ύ Cyprus taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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