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Cyprus vs Israel: tax rates compared
Israel has an income tax rate of 50%, 15pp above Cyprus's 35%. The 200-country average is 28%: both sit above it. Cyprus's figure is dated 2026-05-18 and Israel's 2025-01-01, so the two rates come from different data vintages.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CY | IL | Difference |
|---|---|---|---|
| Income Tax | 35% | 50% | IL +15 pp |
| Corporate Tax | 12.5% | 23% | IL +10.5 pp |
| VAT | 19% | 18% | CY +1 pp |
| Capital Gains Tax | 0% | 25% | IL +25 pplargest gap |
| Crypto Tax | 8% | 25% | IL +17 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 35% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Taxes on personal income) · as of 2026-05-18 |
| Israel | 50% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −15 pp | Israel higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 12.5% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Israel | 23% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −10.5 pp | Israel higher |
Israel has a corporate tax rate of 23%, 10.5pp above Cyprus's 12.5%. The 201-country average is 22.6%: Cyprus sits below it, Israel sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Cyprus | 19% | Source: PWC Worldwide Tax Summaries — Cyprus (Corporate, Other taxes) · as of 2026-05-18 |
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Difference | +1 pp | Cyprus higher |
Cyprus has a VAT rate of 19%, 1pp above Israel's 18%. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Income determination) · as of 2026-05-18 |
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Difference | −25 pp | Israel higher |
Israel has a capital gains tax rate of 25%, 25pp above Cyprus's 0%. The 175-country average is 10.3%: Cyprus sits below it, Israel sits above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 8% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Income determination) · as of 2026-05-18 |
| Israel | 25% | Source: Israel Tax Authority — Income Tax Circular No. 05/2018: Taxation of Activity Using Decentralized Payment Instruments ("Virtual Currencies") · as of 2018-01-17 |
| Difference | −17 pp | Israel higher |
Israel has a crypto tax rate of 25%, 17pp above Cyprus's 8%. The 88-country average is 13%: Cyprus sits below it, Israel sits above it. Cyprus's figure is dated 2026-05-18 and Israel's 2018-01-17, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-05-18 |
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Difference | 0 pp | displayed rates match |
Cyprus and Israel share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.