Cyprus vs Spain taxes (2026): income, company and dividends

Cyprus vs Spain tax rates at a glance

Tax	🇨🇾 Cyprus	🇪🇸 Spain
Income tax	Personal income tax: 0% - 35% Top marginal rate: 35% Tax-free threshold: €22,000 Employee social insurance: 8.8% Employer social insurance: 8.8% GESY employee rate: 2.65%	Personal income tax: 19% - 54% Reference employment scale: 19% - 47% Top marginal rate: About 54% Savings income: 19% - 30% Impatriate regime: 24% to EUR 600,000 Employee social security: About 6.5%+
Corporate tax	Standard CIT: 15% Domestic minimum top-up tax: 15% Share disposal gains: 0% Dividend WHT: 0% / 5% / 17%	Corporate tax: 25% 2026 micro-enterprise first EUR 50,000: 19% 2026 micro-enterprise remainder: 21% 2026 small entities: 23% New companies and start-ups: 15% Credit institutions and certain hydrocarbons: 30% Canary Islands ZEC regime: 4% Pillar Two minimum: 15%
Capital gains tax	Property gains tax: 20% Securities gains: 0% Crypto gains: 8% Listed shares: 0%	Individual capital gains: 19% - 30% Crypto gains: 19% - 30% Property gains: 19% - 30% Non-resident asset-transfer gains: 19% Non-resident property-sale withholding: 3% Exit-tax ownership threshold: >25% and EUR 1m
Dividend tax	General dividend WHT: 0% SDC on resident dividends: 5% Dividend WHT to low-tax jurisdictions: 5% / 17% Non-dom dividends: 0%	Resident dividend tax: 19% - 30% Dividend WHT: 19% Corporate participation exemption: 95% of qualifying dividend Non-resident domestic withholding: 19% Standard corporate tax before distribution: 25%
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0% Immovable property tax: 0%	Wealth tax: 0.2% - 3.5% State minimum exemption: EUR 700,000 Principal residence exemption: Up to EUR 300,000 Large-fortune solidarity tax: 0% / 1.7% / 2.1% / 3.5% Wealth Tax filing threshold: Gross assets over EUR 2m
Inheritance / estate tax	Inheritance tax: 0% Estate duty: 0% Gift tax: 0% Probate tax: 0%	Inheritance tax: 7.65% - 34% Gift tax: 7.65% - 34% Group I state allowance: EUR 15,956.87+ Group II state allowance: EUR 15,956.87 Group III state allowance: EUR 7,993.46 Group IV state allowance: None State fallback effective ceiling: Up to 81.6%
VAT / GST / sales tax	VAT: 19%	VAT: 21% / 10% / 4%
Other key taxes	None listed on country overview	Reference employment scale: 19% - 47%

Who wins on each tax

Personal income taxCyprus

Cyprus tops at 35% and has a EUR 22,000 tax-free threshold from 2026; Spain's final combined regional scale can reach about 54%.

Corporate taxCyprus

Cyprus's standard corporate rate is 15% from 2026, below Spain's 25% standard rate, subject to large-group minimum tax and substance rules.

Capital gains taxCyprus

Cyprus generally exempts share disposals and taxes Cyprus-property gains at 20%; Spain generally taxes individual gains at 19%-30% and property sales can add local tax.

Dividend taxCyprus

Cyprus has 0% general dividend WHT and 0% SDC for non-doms, while Spain generally taxes resident dividends at 19%-30%; domicile and treaty facts matter.

Wealth taxCyprus

Cyprus has no broad wealth tax; Spain has regional Wealth Tax and a separate large-fortune solidarity tax.

The verdict

Cyprus's 2026 corporate rate is 15% and its personal scale reaches 35% with a EUR 22,000 tax-free threshold. Spain's standard company rate is 25% and its combined personal scale can reach about 54%.

Cyprus is also usually lighter on investment income: shares are generally outside CGT, dividends can be 0% for non-doms and Cyprus-property gains are 20%; Spain's securities gains and dividends generally run 19%-30%.

Choose Cyprus for a genuine EU founder or investment base with real substance; choose Spain for market depth, regional lifestyle choice or an eligible impatriate regime. Cyprus domicile, Spanish region, CFC and treaty rules can change the headline result.

How to read this comparison

Cyprus has the stronger low-tax profile; Spain has the stronger large-market and regional-choice profile. The comparison assumes genuine residence and company substance, not a paper relocation.

Frequently asked questions

Is Cyprus or Spain lower tax?

Cyprus is generally lower on company profits, dividends and wealth-tax exposure. Spain can be competitive for a qualifying inbound employee or resident in a favorable autonomous community.

Are Cyprus dividends tax-free?

They can be for non-domiciled Cyprus residents under SDC rules, but source withholding, residence, domicile, beneficial ownership and anti-avoidance rules must still be checked.