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United Kingdom vs Cyprus
Tax Rate Comparison

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

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
vs
๐Ÿ‡จ๐Ÿ‡พ Cyprus
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
0โ€“35%
35% top; non-dom regime reviewed but maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“20%
Standard 20% maintained
No change
5โ€“19%
19% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
19โ€“25%
25% main rate; possible future reform discussions
No change
12.5%
12.5% competitive; IP Box reform for Pillar Two compliance
No change
Capital Gains Tax
Capital Gains Tax
18โ€“24%
Post-Oct 2024 rates in full effect
No change
20%
20% immovable property; shares exempt
No change
Social Security & Payroll
Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~23.8%
GeSY system bedding in; contribution rates stable
No change
State, Regional & Local Taxes

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

๐Ÿ‡จ๐Ÿ‡พ Cyprus โ€” 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.

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

United Kingdom vs Cyprus: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (0โ€“45% vs 0โ€“35%). ๐Ÿ‡จ๐Ÿ‡พ Cyprus is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (0โ€“20% vs 5โ€“19%).

๐Ÿข Corporate Tax: ๐Ÿ‡จ๐Ÿ‡พ Cyprus offers a lower corporate rate (12.5% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡จ๐Ÿ‡พ Cyprus taxes investment gains at a lower rate (20% vs 24%), benefiting investors.

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