The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Cyprus VS COUNTRY B Malta

Side-by-side analysis of income tax, effective rates, and take-home pay for Cyprus and Malta in 2026.

Daniel · CountryTaxCalc Updated October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Both islands offer non-dom regimes, but they work differently. Cyprus: Non-doms pay 0% income tax and 0% SDC on dividends and interest for 17 YEARS — but a 2.65% GESY health contribution still applies to that income regardless of non-dom status. Malta: Non-doms pay 0% on foreign income NOT remitted to Malta + €5,000 minimum tax. Cyprus has a generous €22,000 tax-free threshold (raised from €19,500 in 2026); Malta's 2026 single-person scale is 0% up to €12,000, then 15%, 25% and 35%. For employment income: once Cyprus's 8.8% Social Insurance and 2.65% GESY are added on top of income tax, Cyprus's total burden is about €1,100 lower than Malta's at a €50,000 salary and roughly level at €80,000 (Malta about €120 lower), counting Malta's Class 1 social security for a single employee — see the income table for the full breakdown. For investment income: Cyprus non-dom is still far ahead (17 years free of income tax and SDC, with only the small GESY levy remaining). For business owners: Malta's imputation system can reduce effective corporate+dividend tax to ~5%. Choose Cyprus if: you have dividend/interest income, want longer non-dom duration, or seek simpler rules. Choose Malta if: you're a business owner wanting 5% effective rate, can avoid remitting income, or want iGaming/crypto-friendly jurisdiction.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🇨🇾
COUNTRY A
Cyprus
TAX RATE
35%
Top Rate

Non-dom: 17 years tax-free dividends

🇲🇹
COUNTRY B
Malta
TAX RATE
35%
Top Rate

Non-dom: remittance basis

TYPICAL ANNUAL DIFFERENCE
Moving from Malta → Cyprus at €100,000 dividends
€10,000+

That's €833/month back in your pocket

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🇨🇾 CY TAX
🇲🇹 MT TAX
SAVINGS
10-YEAR
€50,000 salary
€10,908 (€5,183 income tax + €4,400 Social Insurance + €1,325 GESY)
€12,008 (€9,100 income tax + €2,908 Social Security Class 1)
Cyprus saves €1,100 (both figures include social contributions)
€11,000
€80,000 salary
€21,628 (€13,445 income tax + €6,064 Social Insurance, capped + €2,120 GESY)
€21,508 (€18,600 income tax + €2,908 Social Security Class 1)
Malta saves €120 (both figures include social contributions)
€1,200
€100,000 dividends (non-dom)
€2,650 (0% income tax + 0% SDC for 17 years, but 2.65% GESY still applies)
€0 if not remitted
Malta saves €2,650 (Cyprus GESY still due even under non-dom)
€26,500
€100,000 dividends remitted
€2,650 (0% income tax + 0% SDC as non-dom, but 2.65% GESY still applies)
€15,000 (15% flat on remittance)
Cyprus saves €12,350
€123,500
€200,000 via Malta company
N/A
~€10,000 (5% effective!)
Malta company wins for business
€1M+ vs standard
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships

For Employers & Businesses

Deel

★ 4.7Trustpilot  ·  8,728 reviews

Need to hire internationally or pay contractors abroad? Deel handles payroll compliance in 150+ countries. Trusted by 40,000+ companies. 4.7 stars / 8,728 Trustpilot reviews.

⚠ For employers and companies only — not for individual freelancers or employees.

Hiring Internationally? Deel Handles Compliance →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🇨🇾

Cyprus Pros & Cons

+ PROS
  • 17-year non-dom: Dividends and interest TAX-FREE for 17 years (longest in EU)
  • €22,000 tax-free threshold (2026): Malta's is €12,000—Cyprus starts with a bigger advantage
  • 12.5% corporate tax: One of EU's lowest, stable for decades
  • No inheritance tax: Pass wealth tax-free (Malta has 5% duty)
− CONS
  • SDC (Special Defence Contribution): Non-doms exempt, but doms pay 17% on dividends
  • GESY health levy: 2.65% on income (small but adds up)
  • Less sophisticated financial services: Malta has stronger fund/iGaming infrastructure
  • Smaller island: Limited lifestyle/entertainment vs Malta
🇲🇹

Malta Pros & Cons

+ PROS
  • 5% effective corporate tax: Imputation system refunds 6/7ths of tax to shareholders
  • Remittance basis taxation: Foreign income NOT brought to Malta = €0 tax
  • iGaming/crypto hub: Best-regulated jurisdiction for digital businesses in EU
  • English-speaking: Former British colony, easier transition than Cyprus
− CONS
  • €5,000 minimum tax: Non-doms must pay at least €5,000/year regardless of income
  • Smaller tax-free threshold: 0% only up to €12,000 (Cyprus gives €22,000 free)
  • Remittance trap: Need to bring money to Malta = trigger tax on that amount
  • Higher cost of living: Malta property/rent now exceeds Cyprus significantly
FAQ

Frequently Asked Questions

Which non-dom regime is better: Cyprus or Malta?

Cyprus for investment income (17 years tax-free on dividends/interest, can remit freely). Malta for business owners (5% effective via company structure, but €5,000 minimum + can't remit without tax). Cyprus is simpler; Malta requires careful structuring but offers lower business rates.

How does Malta's 5% corporate tax rate work?

Malta charges 35% corporate tax, BUT shareholders can claim 6/7ths refund when dividends are distributed. Net effect: 35% - 30% refund = 5% effective. This requires a Malta company with non-resident shareholders. Setup costs ~€5,000-10,000 but saves fortunes on business profits.

Can I remit money to Cyprus without tax as a non-dom?

Yes! Cyprus non-doms can remit dividend and interest income freely—it remains tax-free. Malta non-doms trigger 15% flat tax on remitted foreign income. This makes Cyprus dramatically better for people who want to actually USE their investment income locally.

Which country has lower tax on employment income?

It depends what's counted. On income tax alone, Cyprus's 2026 scale (0% to €22,000, then 20/25/30/35%, applied after deducting social contributions) gives roughly €13,445 tax at €80,000 versus Malta's €18,600 (0% to €12,000, then 15/25/35%) — a clear Cyprus edge. But Cyprus employees also pay 8.8% Social Insurance (capped at €68,904/year, ~€6,064 max) and 2.65% GESY health contribution, which bring Cyprus's total to about €21,628 at €80,000. Adding Malta's Class 1 social security (about €2,908/year for a private-sector employee) gives a Malta total of about €21,508, so the two are roughly level at €80,000 (Malta about €120 lower), while at €50,000 Cyprus is about €1,100 lower (€10,908 vs €12,008). Malta's €5,000 non-dom minimum also applies for non-doms specifically.

Which is better for cryptocurrency and iGaming businesses?

Malta wins for crypto and iGaming. Malta has the world's first comprehensive crypto regulatory framework and is the EU's iGaming hub. Cyprus is catching up but lacks Malta's established ecosystem. If you're in these industries, Malta's infrastructure and talent pool justify the tax complexity.
From the brief
US$2Mnet worth that triggers the exit tax
AT€100kdeferred gains: yearly proof from July
HU1%proposed wealth tax above 1bn forints
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.