Moving from The United States to Cyprus
The Cyprus side is straightforward once you are resident. The part that catches people is what The United States still expects of them after they leave.
The basic shape of the change
| Income | In The United States | In Cyprus |
|---|---|---|
| Employment income | Up to around 37% at the top | First €22,000 free, then progressive to 35% |
| Dividends | Normally taxed as investment income | No income tax. 2.65% total as a non-dom (GHS only) |
| Interest | Normally taxed as investment income | No income tax. 2.65% GHS only as a non-dom |
| Wealth and inheritance | Country-specific | Neither exists in Cyprus |
The The United States column is a rounded headline figure for orientation only and is never used in any calculation on this site. The Cyprus column is computed from the 2026 rates our calculators run on. Use the estimator below with your own current tax figure for a real comparison.
American issues to sort out first
US citizens and green card holders file US returns on worldwide income no matter where they live — Cyprus residency does not end that.
The Foreign Earned Income Exclusion and the Foreign Tax Credit are the two mechanisms that prevent double taxation; only one is usually optimal.
Cyprus has no wealth tax and no inheritance tax, but US estate tax rules still apply to US persons.
FBAR and FATCA reporting apply to Cypriot bank and investment accounts above the reporting thresholds.
Cyprus SDC and GESY are not creditable in the same way as income tax — check treatment before assuming a credit.
Cyprus and The United States have a double tax treaty. It decides which country taxes each type of income and stops the same income being taxed twice — but relief is rarely automatic, and it is usually claimed rather than given.
The order to do things in
- 1. Confirm you can actually become Cyprus resident. More than 183 days here, or the 60-day route with all 5 conditions met.
- 2. Establish non-dom status. Worth up to 17 years of no SDC on dividends and interest.
- 3. Close out The United States properly. The points above — an incomplete exit is what turns a tax saving into a dispute.
- 4. Restructure how you are paid. Once resident and non-dom, the salary-versus-dividend question is where most of the saving actually is.
Estimate your own position
Relocation Tax Estimator
What your income would cost in Cyprus tax, and how that compares with what you pay today
Your Cyprus tax bill
Total income
€60,000.00
Cyprus tax & contributions
€16,770.00
Net for the year
€43,230.00
Effective rate
28.0%
Take this from your own payslip or tax return. We deliberately do not model The United States tax — your actual figure is far more accurate than any estimate we could make.
Moving from The United States — what to watch
- • US citizens and green card holders file US returns on worldwide income no matter where they live — Cyprus residency does not end that.
- • The Foreign Earned Income Exclusion and the Foreign Tax Credit are the two mechanisms that prevent double taxation; only one is usually optimal.
- • Cyprus has no wealth tax and no inheritance tax, but US estate tax rules still apply to US persons.
- • FBAR and FATCA reporting apply to Cypriot bank and investment accounts above the reporting thresholds.
- • Cyprus SDC and GESY are not creditable in the same way as income tax — check treatment before assuming a credit.
Cyprus and The United States have a double tax treaty, which decides which country taxes what and prevents the same income being taxed twice.
Why Cyprus often works out lower
The first €22,000 of income is untaxed and the top rate is 35%. Dividends and interest sit outside the income tax system altogether — and for a non-domiciled resident they escape SDC too, leaving only GHS at 2.65%. There is no wealth tax and no inheritance tax. The catch is that residency has to be real: the day counts and the conditions in the residency checker are what make any of this apply to you.
The Cyprus side uses 2026 rates. Mid-year moves, treaty tie-breakers, exit taxes and foreign tax credits are not modelled — they can change the answer materially, so take advice before relocating.
General information on 2026 Cyprus rules and commonly encountered American exit issues. Not advice on your circumstances, and not a statement of current The United States law — take professional advice in both countries before relocating.