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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 March 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% on dividends and interest for 17 YEARS. Malta: Non-doms pay 0% on foreign income NOT remitted to Malta + €5,000 minimum tax. Cyprus has a generous €19,500 tax-free threshold; Malta starts taxing from €0. For emplo…
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
€5,625 (after €19,500 exempt)
€8,750
Cyprus saves €3,125
€31,250
€80,000 salary
€13,000
€17,500
Cyprus saves €4,500
€45,000
€100,000 dividends (non-dom)
€0 (17 years!)
€0 if not remitted
Both €0 under non-dom
€0
€100,000 dividends remitted
€0 (non-dom)
€15,000 (15% flat on remittance)
Cyprus saves €15,000
€150,000
€200,000 via Malta company
N/A
~€10,000 (5% effective!)
Malta company wins for business
€1M+ vs standard
💡

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🇨🇾

Cyprus Pros & Cons

+ PROS
  • 17-year non-dom: Dividends and interest TAX-FREE for 17 years (longest in EU)
  • €19,500 tax-free threshold: Malta has €0 threshold—Cyprus starts with big 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
  • No tax-free threshold: Taxed from first euro (Cyprus gives €19,500 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?

Cyprus wins decisively. €80,000 salary: Cyprus ~€13,000 tax (€19,500 exempt, then 20-35%). Malta ~€17,500 tax (0% threshold, rates 0-35%). Cyprus's generous exemption gives a €4,500/year advantage at this level. Malta's €5,000 non-dom minimum also applies.

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
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
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