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Nicaragua vs Cyprus
Tax Rate Comparison

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

🇳🇮 Nicaragua
vs
🇨🇾 Cyprus
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top; economic stability fragile
No change
0–35%
35% top; non-dom regime reviewed but maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
IVA 15% maintained
No change
5–19%
19% standard maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% IR maintained
No change
12.5%
12.5% competitive; IP Box reform for Pillar Two compliance
No change

Capital Gains Tax

Capital Gains Tax
15%
15% CGT
No change
20%
20% immovable property; shares exempt
No change

Social Security & Payroll

Social Security / Payroll
~25.25%
INSS reform pending
No change
~23.8%
GeSY system bedding in; contribution rates stable
No change
State, Regional & Local Taxes

🇳🇮 NicaraguaMunicipal Taxes

Nicaragua's 153 municipalities levy the Impuesto de Matrícula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.

🇨🇾 CyprusMunicipal & 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.

⚠️ 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.

Nicaragua vs Cyprus: Key Tax Differences (2026)

💰 Income Tax: 🇨🇾 Cyprus has a higher top income tax rate (0–30% vs 0–35%). 🇳🇮 Nicaragua is more favourable for high earners.

🛒 VAT/Sales Tax: Cyprus has a higher consumption tax (15% vs 5–19%).

🏢 Corporate Tax: 🇨🇾 Cyprus offers a lower corporate rate (12.5% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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