Figures verified16 OctoberNext weekly checkMondays 06:00Deadline 31 October31 October 2026
US citizens in Cyprus
US citizen in Cyprus? Here's your tax picture.
US citizens are taxed on worldwide income regardless of where they live. But the US-Cyprus tax treaty and Cyprus non-dom status can significantly reduce your overall burden.
Key facts at a glance
You still owe the IRS
File US returnAlways (Form 1040)
FBAR filingIf >$10k foreign accounts
FATCA (Form 8938)If >$200k assets
Foreign income reportingAll worldwide
Self-employment taxMay still apply
Cyprus advantages
Non-dom dividend tax0%
Cyprus income tax0–35%
Foreign tax creditOffset US tax
Treaty protectionTie-breaker rules
No exit tax (Cyprus)0%
US-Cyprus tax treaty
Treaty in forceYes (1986)
Tie-breaker rulesAvailable
Dividend WHT5–15%
Interest WHT10%
Royalties WHT0%
US + Cyprus tax estimator
$80,000
$0$500k
$50,000
$0$1000k
Non-dom status in Cyprus?
Using Foreign Tax Credit?
Results
Cyprus tax liability$16,300
US tax (before FTC)$24,243
FTC credit applied−$16,300
US tax after FTC$7,943
Total combined tax$24,243
Effective combined rate18.6%
Saving vs US-only filing$0
Estimates only. US brackets are approximate for 2026. Consult a dual-qualified tax advisor for your situation.
FATCA & FBAR obligations
FBAR (FinCEN 114)
Threshold>$10,000 aggregate
Deadline15 April (auto-extension to Oct)
Filed withFinCEN (not IRS)
Penalty (wilful)Up to $100k or 50% balance
Penalty (non-wilful)Up to $10k
Amnesty availableStreamlined procedure
FATCA (Form 8938)
Threshold (abroad, single)>$200k EOY
Threshold (abroad, married)>$400k EOY
Filed withIRS with Form 1040
Penalty (failure to file)$10,000
ExtensionWith tax return
Overlap with FBARYes — file both
Both requirements can apply simultaneously. Having a foreign bank account over $10,000 may trigger both FBAR and FATCA reporting — even if the income is not taxable.
Renunciation
Considering giving up US citizenship?
Disclaimer: This is general information only. Renunciation is irrevocable and has permanent consequences. Consult a qualified US tax attorney for advice specific to your situation.
Questions about US taxes in Cyprus?
Ask Taxerly for instant answers, or book a call with a dual-qualified US and Cyprus tax advisor.
I'm a US citizen moving to Cyprus — do I still file with the IRS?
Can I use the Foreign Tax Credit to avoid double taxation?
What are my FBAR obligations if I have a Cypriot bank account?