Ireland vs Cyprus taxes (2026): 12.5%, 60-day residence and CAT

Ireland vs Cyprus tax rates at a glance

Tax	🇮🇪 Ireland	🇨🇾 Cyprus
Income tax	Standard rate: 20% Higher rate: 40% Single standard-rate cut-off: About EUR 44,000 USC bands: 0.5% / 2% / 3% / 8% Employee PRSI: 4.2% then 4.35% Employer PRSI: About 9% / 11.25%+	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%
Corporate tax	Trading profits: 12.5% Passive / non-trading: 25% Company capital gains: 33% Pillar Two minimum: 15% Knowledge Development Box: Effective 10%	Standard CIT: 15% Domestic minimum top-up tax: 15% Share disposal gains: 0% Dividend WHT: 0% / 5% / 17%
Capital gains tax	Standard CGT: 33% Annual individual exemption: EUR 1,270 Certain funds / policies: 40% Corporate gains: Often 33%	Property gains tax: 20% Securities gains: 0% Crypto gains: 8% Listed shares: 0%
Dividend tax	Dividend withholding tax: 25% Standard income tax on dividends: 20% / 40% USC on dividends: Often applies Non-resident relief: Treaty / exemption dependent	General dividend WHT: 0% SDC on resident dividends: 5% Dividend WHT to low-tax jurisdictions: 5% / 17% Non-dom dividends: 0%
Wealth tax	Net wealth tax: 0% Annual asset tax: 0% Local property tax: Applies	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0% Immovable property tax: 0%
Inheritance / estate tax	CAT rate: 33% Group A: EUR 400,000 free then 33% Group B: EUR 40,000 free then 33% Group C: EUR 20,000 free then 33% Spouse / civil partner: Generally exempt	Inheritance tax: 0% Estate duty: 0% Gift tax: 0% Probate tax: 0%
VAT / GST / sales tax	VAT: 23%	VAT: 19%

Who wins on each tax

Personal income taxCyprus

Cyprus tops at 35% with a EUR 22,000 2026 tax-free threshold; Ireland's 20%/40% bands plus USC and PRSI are heavier for ordinary residents.

Corporate taxIreland

Ireland taxes genuine trading profits at 12.5%, below Cyprus's 15% standard rate from 2026; Irish passive income is generally 25%.

Capital gains taxCyprus

Cyprus CGT is generally 20% and mainly hits immovable property and property-rich companies; Ireland's general CGT is 33%.

Inheritance taxCyprus

Cyprus has no inheritance tax; Ireland's CAT is 33% above relationship thresholds.

The verdict

Cyprus looks cheaper on most personal lines: income tax is 0% to 35% with a EUR 22,000 tax-free threshold from 2026, dividends are generally 0% or 5% after the Special Defence Contribution reform, there is no wealth tax and no inheritance tax. Ireland layers 20%/40% income tax with USC and PRSI, charges 33% CGT and 33% CAT.

Ireland still wins for a genuine trading company at 12.5% versus Cyprus's 15% corporate rate from 2026, provided the trade, people and IP substance are Irish. Cyprus tax residence can be claimed on a 60-day test as well as the ordinary 183-day test, but that is a residence rule with conditions, not a substitute for Irish worldwide residence if you remain Irish-resident.

Choose Cyprus for a lighter personal and dividend profile if you actually become Cyprus-resident. Choose Ireland for an operating or IP-using trade that needs Irish substance and CAT-aware family planning.

How to read this comparison

Ireland is a trading-company jurisdiction with a heavy personal overlay. Genuine trading profits are taxed at 12.5%; most passive income is 25%; in-scope large groups face a 15% minimum. Individuals pay 20% or 40% income tax plus USC and PRSI, so the take-home rate is not the table. CGT is 33%. CAT on gifts and inheritances is 33% above relationship thresholds. VAT is 23%. Tax residents are taxed on worldwide income. That worldwide net is the item people try to escape, and it does not turn off because a second country offers a short-stay residence test.

Cyprus is the lighter personal system. From 2026 the tax-free threshold is EUR 22,000 and the top personal rate is 35%. Corporate tax is 15%. There is no net wealth tax and no inheritance tax. Dividend planning now turns on a 0%/5% Special Defence Contribution picture for profits earned after 1 January 2026, not on the old higher SDC. Capital gains tax is 20% and is mainly about Cyprus immovable property and property-rich companies, with a broad exemption for many share disposals. VAT is 19%. Social insurance and GESY still apply.

The 60-day residence rule is the marketing hook and the constraint. Cyprus can treat someone as resident on a 60-day test if the statutory conditions are met, alongside the ordinary 183-day route. That is useful for people who genuinely centre their life in Cyprus. It is not a way to remain Irish-resident, keep Irish-source employment, or hold an Irish close company while claiming a Mediterranean weekend calendar. Dual residents fall to treaty tie-breakers. Irish CAT can still meet Irish-situated assets even when the heir lives elsewhere.

Choose Cyprus for personal rates, dividends and succession if residence is real. Choose Ireland when the 12.5% trade, the talent market and the treaty network are the business, and budget USC, PRSI and CAT as part of that choice.

Which one fits you

🇮🇪 Choose Ireland if you're a…

Trading companies with real Irish operations
Groups that need Ireland's treaty and multinational ecosystem
Founders who will pay CAT as the succession cost of an Irish base

🇨🇾 Choose Cyprus if you're a…

Individuals who can meet Cyprus residence, including the 60-day route where it genuinely applies
Dividend-focused shareholders under the 0%/5% SDC rules
Families who want no inheritance tax

Frequently asked questions

Is Ireland or Cyprus better for tax?

Cyprus is usually better for personal tax, dividends and inheritance. Ireland is usually better for a genuine trading company at 12.5%, provided substance is Irish and the individual is not still Irish-resident on worldwide income.

Can the Cyprus 60-day rule replace Irish tax residence?

No. The 60-day test can make someone Cyprus-resident if its conditions are met, but Irish tax residence is a separate worldwide test. Dual residence is resolved by treaty tie-breakers, not by booking 60 days in Limassol.

Does Cyprus tax share gains like Ireland's 33% CGT?

Generally no. Cyprus CGT is 20% and is aimed mainly at Cyprus immovable property and shares in property-rich companies. Ireland's standard CGT is 33% on chargeable gains.