Denmark vs Cyprus
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฉ๐ฐ Denmark โ Municipal Income Tax
Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%โ27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55โ56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.
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.
Denmark vs Cyprus: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ฐ Denmark has a higher top income tax rate (~55.9% vs 0โ35%). ๐จ๐พ Cyprus is more favourable for high earners.
๐ VAT/Sales Tax: Denmark has a higher consumption tax (25% vs 5โ19%).
๐ข Corporate Tax: ๐จ๐พ Cyprus offers a lower corporate rate (12.5% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐พ Cyprus taxes investment gains at a lower rate (20% vs 42%), benefiting investors.