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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.
Editorial scope · audited 23 October 2026
Purpose: This page is a first-pass screening comparison between Cyprus and Spain. It helps readers identify which company, residence, administration and operating-substance questions need deeper review.
Method: The table compares the same named dimensions side by side. A headline rate is never treated as a complete outcome; residence, source of income, eligibility, substance and recurring compliance must be assessed together.
Limitations: The tax and residence statements on this page still require qualified review in both Cyprus and Spain before they are used for a transaction or relocation decision. Rules, thresholds and administrative practice can change.
— Side by side
| Dimension | 🇨🇾 Cyprus | 🇪🇸 Spain |
|---|---|---|
| Inbound regime | Non-dom 17 yrs | Beckham Law 6 yrs |
| Tax on inbound dividends | 0% (non-dom) | Up to 28% (excluded from Beckham flat) |
| Top marginal personal tax | 35% (or 17.5% with 50% exemption) | 47% (state + autonomous community) |
| Corporate income tax | 15% | 25% standard / 23% small co. |
| Wealth / solidarity tax | None | Solidarity Tax on Large Fortunes + autonomous wealth |
| Exit tax on shares | None | €4M threshold, Art. 95 bis LIRPF |
| Min. days for tax residency | 60 (with conditions) / 183 | 183 |
| EU + euro | Yes | Yes |
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 approximately 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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