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Cyprus vs Romania
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡¨πŸ‡Ύ Cyprus
vs
πŸ‡·πŸ‡΄ Romania
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–35%
35% top; non-dom regime reviewed but maintained
No change
10%
10% flat; potential graduated system under IMF/EU pressure
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5–19%
19% standard maintained
No change
5–19%
19% standard; possible increase for fiscal consolidation
No change
Corporate Tax Rate
Corporate Tax Rate
12.5%
12.5% competitive; IP Box reform for Pillar Two compliance
No change
16%
16% maintained; micro regime tightening
No change
Capital Gains Tax
Capital Gains Tax
20%
20% immovable property; shares exempt
No change
10%
10% flat; potential reform
No change
Social Security & Payroll
Social Security / Payroll
~23.8%
GeSY system bedding in; contribution rates stable
No change
~37.25%
Contribution reform pending; pension system deficit
No change
State, Regional & Local Taxes

πŸ‡¨πŸ‡Ύ Cyprus β€” 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.

πŸ‡·πŸ‡΄ Romania β€” Local & County Taxes

Romania's 41 counties (judeţe) and Bucharest municipality do not set income tax — this is nationally set. Municipalities levy local taxes including property tax (impozit pe clădiri, impozit pe teren) and vehicle tax (impozit pe mijloace de transport). Bucharest has higher property tax coefficients than rural areas. A micro-enterprise tax regime (1% or 3% on turnover) applies to small companies instead of standard CIT. Romania has had the EU's lowest flat income tax rate at 10%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Cyprus vs Romania: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡¨πŸ‡Ύ Cyprus has a higher top income tax rate (0–35% vs 10%). πŸ‡·πŸ‡΄ Romania is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (5–19% vs 5–19%).

🏒 Corporate Tax: πŸ‡¨πŸ‡Ύ Cyprus offers a lower corporate rate (12.5% vs 16%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡·πŸ‡΄ Romania taxes investment gains at a lower rate (10% vs 20%), benefiting investors.

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