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USA to Cyprus

Tax Savings Moving from USA to Cyprus

USA effective rate: 39.8%. Cyprus Non-Dom: 17.3%. Annual saving on €100k profit: €22,548.

Annual profit €50,000

€11,274

saved per year

USA tax€19,900
Cyprus tax€8,626

Annual profit €100,000

€22,548

saved per year

USA tax€39,800
Cyprus tax€17,253

Annual profit €200,000

€45,625

saved per year

USA tax€79,600
Cyprus tax€33,975

10-year cumulative saving (at €100k/year)

€225,480

on the same income, in the same company structure — just a different country of residence

Full comparison by income level

Annual profit🇺🇸 USA tax🇨🇾 Cyprus taxAnnual savingCyprus take-home
€50,000€19,900€8,626€11,274€41,374
€100,000€39,800€17,253€22,548€82,748
€200,000€79,600€33,975€45,625€166,025

🇺🇸 Tax burden in USA

21% federal corporate tax + state tax (0-13%). 23.8% on qualified dividends (20% LTCG + 3.8% NIIT). Citizens taxed worldwide regardless of residence (FATCA/FBAR).

🇨🇾 USA to Cyprus: key points

US-Cyprus tax treaty limited (mainly shipping). US citizens face FATCA/FBAR obligations regardless of residence. Moving to Cyprus reduces state tax exposure but federal obligations remain until expatriation (Form 8854).

Frequently asked questions

How much tax does a business owner pay in USA?
Under the entrepreneur dividend extraction model (company profit fully distributed as dividends), the effective rate in USA is approximately 39.8%. On €100,000 company profit, that is approximately €39,800 in combined corporate and dividend taxes.
How much tax does a Non-Dom in Cyprus pay on the same income?
Cyprus Non-Dom: 15% corporate tax + 2.65% GHS on net dividends. On €100,000 company profit: €17,253 total (approximately 17.3% effective rate). Take-home: €82,748.
What is the annual tax saving moving from USA to Cyprus?
At €100,000 company profit: €22,548 annual saving. Over 10 years, that is €225,480 — on the same income. At €50,000: €11,274/year. At €200,000: €45,625/year.
Is there a tax treaty between USA and Cyprus?
US-Cyprus tax treaty limited (mainly shipping). US citizens face FATCA/FBAR obligations regardless of residence. Moving to Cyprus reduces state tax exposure but federal obligations remain until expatriation (Form 8854).
Do I qualify for Cyprus Non-Dom status when moving from USA?
Most nationals moving from USA qualify automatically for Non-Dom status in Cyprus, as they have not been Cyprus tax residents for at least 17 of the previous 20 years. The key requirement is establishing Cyprus tax residency via the 183-day rule or the 60-day rule.

Model your own numbers

These calculations use the dividend extraction model. Enter your actual revenue, salary, and expenses in the calculator for a personalised Cyprus tax breakdown.

Related guides

Savings figures are based on 2026 published effective tax rates (PwC, EY, KPMG). The dividend extraction model applies a flat effective rate; actual rates are progressive and depend on deductions, salary/dividend split, treaty provisions, and personal circumstances. Not tax advice. Consult qualified advisors in both your home country and Cyprus before making decisions.