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Cyprus vs Panama: tax rates compared
Cyprus's income tax rate is 10pp higher than Panama's (35% vs 25%). The 200-country average is 28%: Cyprus sits above it, Panama sits below it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CY | PA | Difference |
|---|---|---|---|
| Income Tax | 35% | 25% | CY +10 pp |
| Corporate Tax | 12.5% | 25% | PA +12.5 pplargest gap |
| VAT | 19% | 7% | CY +12 pp |
| Capital Gains Tax | 0% | 10% | PA +10 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 |
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Difference | +10 pp | Cyprus higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 12.5% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −12.5 pp | Panama higher |
Panama's corporate tax rate is 12.5pp higher than Cyprus's (25% vs 12.5%). The 201-country average is 22.6%: Cyprus sits below it, Panama sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Cyprus | 19% | Source: PWC Worldwide Tax Summaries — Cyprus (Corporate, Other taxes) · as of 2026-05-18 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | +12 pp | Cyprus higher |
Cyprus's VAT rate is 12pp higher than Panama's (19% vs 7%). The 181-country average is 15%: Cyprus sits above it, Panama sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Cyprus (Individual, Income determination) · as of 2026-05-18 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | −10 pp | Panama higher |
Panama's capital gains tax rate is 10pp higher than Cyprus's (10% vs 0%). The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Cyprus | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-05-18 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
Cyprus's wealth tax rate is identical to Panama's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.