Cyprus tax rates
Europe · headline statutory rates, 2025 · Moderate
In Cyprus, the top statutory personal income tax rate is 35% (ranked #39 of 96 countries), the headline corporate income tax rate is 15%, and the standard VAT/GST rate is 19%. Capital gains for individuals are treated as: 20% (real estate only; securities exempt). Overall it reads as a moderate jurisdiction on headline rates — broadly mid-range headline rates. These are statutory top rates, not the effective tax most people pay, and not tax advice — verify with Cyprus's official tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Cyprus tax rates at a glance
| Tax | Cyprus |
|---|---|
| Top personal income tax rate | 35% |
| Corporate income tax rate | 15% |
| Standard VAT / GST | 19% |
| Capital gains (individuals) | 20% (real estate only; securities exempt) |
| Employee social security | Employee 8.8% |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Headline statutory rates (2025), compiled from PwC Worldwide Tax Summaries and cross-checked against OECD / Tax Foundation data. Rates change — confirm with the official tax authority before relying on them. This is not tax advice.
What these Cyprus rates mean
The figures above are headline statutory rates: the top marginal personal income tax rate, the standard (not reduced) VAT/GST rate, and the main corporate rate. The top 35% income tax rate only bites on income above the highest bracket — the effective rate an average earner pays is lower. Consumption is taxed through VAT/GST at 19%, usually with reduced rates on essentials. Always layer in social security (Employee 8.8%) and any local taxes for a full picture.
How Cyprus ranks
| Measure | Cyprus | Rank (1 = highest) |
|---|---|---|
| Top personal income tax | 35% | #39 of 96 |
| Corporate income tax | 15% | #72 of 96 |
| Standard VAT/GST | 19% | #38 of 87 |
Countries with a similar tax level to Cyprus
The five countries closest to Cyprus on overall headline tax level:
| Country | Top income tax | Corporate tax | VAT/GST |
|---|---|---|---|
| Cyprus (this country) | 35% | 15% | 19% |
| Indonesia | 35% | 22% | 12% |
| Estonia | 22% | 22% | 24% |
| Lithuania | 32% | 17% | 21% |
| Costa Rica | 25% | 30% | 13% |
| Russia | 22% | 25% | 20% |
Frequently asked questions
What is the income tax rate in Cyprus?
The top statutory personal income tax rate in Cyprus is 35%. This is the highest marginal rate, which only applies above the top income threshold — most taxpayers pay less. It ranks #39 of 96 countries in our dataset by top rate. Headline rate as of 2025; verify with the official tax authority.
What is the corporate tax rate in Cyprus?
Cyprus's headline corporate income tax rate is 15%, ranking #72 of 96 by headline corporate rate. Effective rates can differ with incentives, surcharges and local taxes. Verify with the official authority.
Does Cyprus have VAT or sales tax?
Yes — the standard VAT/GST rate in Cyprus is 19%. Reduced rates often apply to food, medicine and other essentials.
Is Cyprus a high-tax or low-tax country?
On headline statutory rates, Cyprus looks like a moderate jurisdiction — broadly mid-range headline rates. This is a rough signal from top rates only, not the effective tax an average person or company pays. Tax residency, deductions and treaties change the real picture. Not tax advice.
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Sources & accuracy
Headline rates for Cyprus from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Data as of June 2026; reflects roughly the 2025 tax year. These are statutory headline rates, not effective rates, and this page is general information, not tax advice — verify with Cyprus's official tax authority and a qualified adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-20