Do Cyprus banks report American account holders to the IRS?
Short answer
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.
That is why a Cyprus bank asks about your US tax status when you open an account.
Under the Central Bank of Cyprus's 2025 anti-money-laundering directive, banks may accept a passport and an electronic utility bill and may check identity remotely. They must refuse an account if they cannot complete their checks, and must not refuse without good reason.
Sources
- 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
Information, not advice. This answer describes the published rules as they stand on 12 October 2026, checked against the sources listed. Tax and residence rules depend on your own circumstances and change; check your position with a tax adviser qualified in the US and in Cyprus before you act on it.
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