Compare · Cyprus vs Spain
Cyprus non-dom (17 yrs, 0% SDC) vs Spain's Beckham Law (6 yrs, 24%) + €4M exit-tax threshold. Founder comparison.
— Side by side
Dividend treatment
Spain's Beckham doesn't extend to foreign dividends — they're still taxed at full Spanish rates (up to 28%). Cyprus non-dom gives 0% SDC on dividends. For a founder taking €500k/year in dividends, the difference is €100k+ annual tax saved.
17 years vs 6 years
Beckham Law runs for max 6 years (start year + 5). Cyprus non-dom is 17 years. For long-horizon planning, Cyprus protects the structure for almost 3× as long.
No exit-tax trap
Spain's Art. 95 bis LIRPF imposes a €4M exit tax on share dispositions if you leave Spain. Cyprus has no exit tax, so a future founder mobility scenario stays clean.
Madrid / Barcelona ecosystem
Spain has larger tech hubs with deeper VC networks, more accelerators, and more international corporate presence. Hiring senior talent is faster.
Better climate diversity
Spain offers everything from Andalusia coast to Madrid altitude to Basque rain. Cyprus is summer-hot most of the year — great for some, intense for others.
Schengen + train connectivity
Spain's national rail network (AVE) + Schengen mainland integration make EU travel easier. Cyprus is an island requiring flights for all EU travel.
— Common questions
Not simultaneously — you can only be tax resident in one country in a given year. Some founders use Spain for 5 years under Beckham, then exit before year 6 (to avoid losing the regime) and move to Cyprus for the next 17 years under non-dom. The 11-year planning window matters.
Spain has both autonomous-community wealth tax (varies by region — Madrid 100% exempt, Catalonia up to 3.48%) and a temporary Solidarity Tax on Large Fortunes (1.7–3.5%). Cyprus has neither. For HNW individuals, the saving easily reaches €30k–100k+ per year.
Yes, if you have shareholdings worth >€4M and become a non-resident, Art. 95 bis treats it as a deemed disposal at fair value and taxes the unrealised gain at ~26%. Deferral is possible if you move within the EU/EEA, but interest accrues.
Yes — Cyprus has well-regarded private and international English-language schools (American Academy, English School Nicosia, GC School) in Nicosia, Limassol, Larnaca, and Paphos. Many Spanish families relocate via the school-year cycle.
The Spain-Cyprus tax treaty (in force since 2014) gives 0% withholding on qualifying dividends, 0% on interest, and 0% on royalties paid from a Spanish OpCo to a Cyprus HoldCo. This makes a Spanish-OpCo / Cyprus-HoldCo structure structurally clean.
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Engagements coordinated with ICPAC-registered Cyprus tax advisers and Cyprus Bar Association member-firm lawyers. MOKAS-aligned under Cyprus AML Law 188(I)/2007. See our editorial standards and disclaimer.
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