European Union: Capital Gains Tax

Running a company in Spain can mean paying tax on the same profit in several layers: corporate tax, savings tax on dividends, wealth tax, and solidarity tax. Cyprus offers a simpler structure with 15% corporate tax and minimal taxation on dividends for non-domiciled residents. This comparison examines how founders can structure their businesses more tax-efficiently.

Many founders compare Cyprus and Bulgaria solely on corporate tax rates, but the real decision involves tax residency rules, treaty networks, dividend treatment, and legal structures. This analysis examines how these factors affect international businesses beyond the headline 10% versus 15% comparison.

If safeguarding your business and its valuable assets is a top priority, opting for a dual company structure can offer an extra level of protection.

On 23 January 2026, the Legal Notice titled “Tax Treatment of Highly Skilled Individuals Rules, 2026” became effective.

Mr Liao Wang is a successful Chinese businessman who lives in Beijing with his wife. At 55, family remains central to his life. Their two children study in Europe, one in Amsterdam and the other in Madrid, and the couple visits them every six to eight weeks. Since both children have finished school and have continued their studies abroad, the Wangs are considering a move of residence.

Les actions d’une SAS acquises par une société holding d'un dirigeant fondateur dans le cadre d’une recapitalisation revêtent le caractère de titres de participation, ouvrant droit au régime d’imposition au taux de 0 % prévu à l’article 219, I-a quinquies du CGI, eu égard notamment aux conditions d’acquisition des titres, aux stipulations du pacte d’actionnaires et au rôle de l’associé dirigeant au sein de la société émettrice (CAA Marseille, 19 mars 2026, n° 24MA01012).

I want to talk about the subject of residency in Italy and the taxes that apply to you if you are considered resident. This is a subject that causes a lot of confusion, but the rules themselves are actually quite clear.

A Cyprus resident company holding a portfolio of listed securities, funds, or bonds can generate capital gains and dividend income entirely free of corporation tax.

In the recent Supreme Court (SC) case of Sean Flaherty v The Revenue Commissioners 2026 [IESC] 4, the SC considered when a contract would be considered to be ‘conditional’ for Irish capital gains tax (CGT) purposes. Ordinarily, a disposal is deemed to occur (and a charge to Irish CGT is considered to arise) on the date a contract is entered into.