Moving to Cyprus from the US.
The US taxes its citizens wherever they live, so moving to Cyprus adds forms rather than removing them. These are the questions American clients ask us first, answered from the IRS, the State Department and the Cyprus authorities.
Updated
The short version
- You keep filing a US return every year; the foreign earned income exclusion is $132,900 for 2026.
- Report Cyprus accounts on the FBAR once they total more than $10,000, and on Form 8938 above the thresholds for people abroad.
- Owning 10% or more of a Cyprus company usually means Form 5471, and Cyprus's 15% rate is below the US high-tax exception.
- There is no totalization agreement, so self-employed Americans usually keep paying US self-employment tax.
Moving and residence
- Can an American move to Cyprus?Yes. US citizens can visit Cyprus without a visa for up to 90 days; to stay longer, you need a residence permit from the Migration Department, and which one depends on what you will do here.
- How long can a US citizen stay in Cyprus without a visa?Up to 90 days in any 180-day period. Cyprus is in the EU but not in the Schengen area, so days in Cyprus are counted separately from days in Schengen countries.
Tax
- Do I still have to file US taxes if I live in Cyprus?Yes. The US taxes its citizens on their worldwide income wherever they live, so you keep filing a US return every year, even when exclusions and credits mean no US tax is due.
- How much is the foreign earned income exclusion for 2026?$132,900 per person for tax year 2026 ($130,000 for 2025), for wages and self-employment income earned while your tax home is abroad and you pass the bona fide residence or the physical presence test.
- Is there a tax treaty between the US and Cyprus?Yes. It was signed in Nicosia on 19 March 1984 and has been in force since 31 December 1985. Its saving clause lets the US tax its citizens as if the treaty did not exist, with a few exceptions.
- Do I still owe state income tax after moving to Cyprus?It depends on the state. California and New York, for example, can keep treating you as a resident after you move abroad unless you meet their specific tests.
Your company
- What US forms do I file if I own a Cyprus company?If you own 10% or more of it, usually Form 5471 every year, and the penalty for not filing is $10,000 per company per year. If US shareholders own more than half, it is a controlled foreign corporation (CFC), and some of its income can be taxed to you before it is paid out.
- How does the 2025 US tax law (NCTI) affect a Cyprus company?For tax years starting after 31 December 2025, GILTI became net CFC tested income (NCTI). The return on physical assets is no longer excluded, the deduction falls to 40% and the credit for foreign tax rises to 90%. Cyprus's 15% rate is below the 18.9% needed for the high-tax exception.
- Can my Cyprus company be a disregarded entity for US tax?It can choose. Only the Cyprus public limited company is on the US list of entities that must be taxed as corporations, so a private company limited by shares can elect its classification on Form 8832. Without an election, it is taxed as a corporation.
Banking, Social Security and everyday life
- Do I have to report my Cyprus bank account to the US (FBAR and Form 8938)?The FBAR, if your foreign accounts together exceeded $10,000 at any time in the year. Form 8938 as well, if you live abroad and your foreign financial assets exceed $200,000 at year-end or $300,000 at any time ($400,000 and $600,000 if married filing jointly).
- Do Cyprus banks report American account holders to the IRS?Yes, through the Cyprus Tax Department. Cyprus has a Model 1 FATCA agreement with the US, in force since 21 September 2015: banks report US accounts to the Tax Department, which passes the information to the IRS.
- Do I pay US Social Security tax while living in Cyprus?If you are self-employed, usually yes. There is no US–Cyprus totalization agreement, so US self-employment tax of 15.3% applies once your net earnings reach $400, and the foreign earned income exclusion does not reduce it. Cyprus social insurance can apply to the same income.
Sources
- U.S. Department of State: Cyprus country information travel.state.gov
- Migration Department: digital nomads and family members gov.cy
- Migration Department: legislation and policy gov.cy
- Migration Department: visitors and family members gov.cy
- Migration Department: immigration permits for investors gov.cy
- Cyprus Ministry of Foreign Affairs: countries whose nationals do not need a visa gov.cy
- Regulation (EU) 2018/1806, Article 4 (EUR-Lex) eur-lex.europa.eu
- European Commission: EES and ETIAS, what travellers need to know (April 2026) home-affairs.ec.europa.eu
- IRS: U.S. citizens and resident aliens abroad irs.gov
- IRS: foreign tax credit irs.gov
- IRS: figuring the foreign earned income exclusion irs.gov
- IRS: foreign earned income exclusion irs.gov
- IRS Notice 2026-25: housing expense limits for 2026 irs.gov
- IRS: self-employment tax for businesses abroad irs.gov
- IRS: United States–Cyprus income tax convention (PDF) irs.gov
- California Franchise Tax Board: Publication 1031 (2025) ftb.ca.gov
- New York State Department of Taxation: resident, nonresident and part-year resident tax.ny.gov
- IRS: report of foreign bank and financial accounts (FBAR) irs.gov
- IRS: do I need to file Form 8938? irs.gov
- U.S. Treasury: FATCA intergovernmental agreements home.treasury.gov
- U.S. Treasury: the FATCA agreement with Cyprus (PDF) home.treasury.gov
- Central Bank of Cyprus: questions and answers on the 2025 AML directive (Greek) centralbank.cy
- IRS: instructions for Form 5471 irs.gov
- Public Law 119-21 (GovInfo) govinfo.gov
- IRS: instructions for Form 8993 irs.gov
- eCFR: 26 CFR 1.954-1, the high-tax exception ecfr.gov
- eCFR: 26 CFR 301.7701-2, business entities and per se corporations ecfr.gov
- eCFR: 26 CFR 301.7701-3, classification elections ecfr.gov
- IRS: about Form 8858 irs.gov
- Social Security Administration: totalization agreements in force secure.ssa.gov
- Social Security Administration: your payments while you are outside the United States ssa.gov
Information, not advice. These answers describe the published rules as they stand on 12 October 2026. Tax and residence rules depend on your own circumstances; check your position with a qualified tax adviser before you act on them.
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