Spain 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.
๐ช๐ธ Spain โ Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econรณmico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
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.
Spain vs Cyprus: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ธ Spain has a higher top income tax rate (19โ47% vs 0โ35%). ๐จ๐พ Cyprus is more favourable for high earners.
๐ VAT/Sales Tax: Spain has a higher consumption tax (4โ21% vs 5โ19%).
๐ข Corporate Tax: ๐จ๐พ Cyprus offers a lower corporate rate (12.5% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐พ Cyprus taxes investment gains at a lower rate (20% vs 28%), benefiting investors.