U.S. and Cypriot taxes, prepared to agree
Cyprus attracts Americans with its residency programs and company structures — and a U.S. citizen using them still files a U.S. return every year. The treaty helps; the U.S. reporting of Cypriot companies and accounts is where most files need attention.
Who this is for
Americans living in Cyprus under its residency and non-domicile arrangements
Owners of a Cyprus company with U.S. ties
Cypriot nationals living and working in the U.S.
Investors holding Cyprus property or funds
Where these files go wrong
- 01
A Cyprus company owned by a U.S. person with no Form 5471 — and often no U.S. tax planning for its income
- 02
Cyprus’s low local tax assumed to settle the U.S. side as well
- 03
Cyprus bank accounts and funds left off FBAR and Form 8938
- 04
Treaty positions never filed
- 05
Dividends from a Cyprus company treated the same as U.S. dividends on the U.S. return
Working between the U.S. and Cyprus
On the U.S. side
- Annual returnAnnual U.S. return for citizens and green-card holders in Cyprus
- TreatyU.S.–Cyprus income tax treaty positions where they help
- CreditsForeign tax credit for Cypriot tax
- ReportingReporting of Cyprus accounts and companies
On the Cyprus side
- ResidencyResidency and non-domicile arrangements for new residents
- CompaniesCompany structures commonly used by international owners
- Social securityNo totalization agreement with the U.S.
- Local filingLocal filing by a Cypriot adviser, coordinated with ours
General orientation, not advice — confirmed for your facts in the engagement.
What we handle, start to finish
U.S. returns for expats and new residents
Forms 1040 and 1040-NR, dual-status years, foreign earned income exclusion (Form 2555), foreign tax credit (Form 1116)
Foreign account and asset reporting
FBAR (FinCEN 114) and Form 8938
Foreign company and partnership reporting
Forms 5471, 5472, 8858, and 8865
Treaty positions
Form 8833 and withholding coordination, where a treaty exists
Foreign trusts, pensions, and funds
Forms 3520 and 3520-A, PFIC analysis (Form 8621)
Catch-up filings
The Streamlined Filing Compliance Procedures for people who didn’t know they had to file
U.S. taxpayer numbers and real estate
Coordination with the foreign return
Whoever prepares the other country’s return, we make sure credits, dates, and positions match before either is filed
Three kinds of returns. One team that makes them agree.
We handle U.S. domestic returns, cross-border (U.S.–Canada) returns, and international tax returns. When a case calls for deeper expertise — in any country — we bring in hand-picked specialists who work under our lead. One team, one point of contact, one plan — and returns that agree.
- You know who is working on your file
- One plan and one price, quoted in writing
- Both returns reviewed together before anything is filed
How your file is staffed
- U.S. domestic returnsour U.S. Tax Desk
- Cross-border (U.S.–Canada)our U.S. and Canadian Tax Desks, together
- Internationalhand-picked country specialists, under our lead
- Your single point of contactFairlight
From first call to filed, on both sides
A free fit call
Fifteen minutes. Which countries, which years, what’s been filed. We tell you honestly what’s needed and whether we can coordinate the foreign side.
A written scope and price
The U.S. work and the coordination, quoted in writing before anything starts. No hourly meter.
Both sides prepared together
Each return is prepared with the same facts, and credits, dates, and positions are matched before either is filed.
Filed, and on a schedule
Both returns filed, deadlines tracked, and the next year planned — not just the one behind you.
U.S.–Cyprus tax, up front
Is there a tax treaty between the U.S. and Cyprus?
Yes. It supports credits and determines taxing rights on certain income; benefits are claimed on the return.
Cyprus taxes me lightly. Does that reduce my U.S. tax?
Only to the extent Cyprus tax is actually paid and credited. Low local tax often means more U.S. tax, not less — which is why the U.S. side needs planning.
I own a Cyprus company. What does the U.S. want?
Form 5471 and related disclosures each year, and a review of how the company’s income is treated for U.S. purposes.
Will I pay social security in both countries?
There is no U.S.–Cyprus totalization agreement; coverage follows each country’s rules.
What does it cost?
It depends on the countries, the years, and the forms involved, so we quote it in writing after a short call — fixed, before any work begins. No hourly meter and no surprise add-ons.
How do we get started?
Book a free 15-minute fit call. Bring your last filed returns if you have them; if you don’t, book anyway.
An American living outside the U.S.? See U.S. expat returns for the filing rules that apply wherever you live, or all international tax.
Read our guide: U.S. Expat Taxes in Cyprus — What Americans Need to Know →
Ties to Cyprus? Start here.
A free 15-minute call, then a written scope and price. No payment until after.
The content on this page is for informational purposes only and does not constitute professional tax advice. International tax requirements depend on individual facts and circumstances and are subject to change. Foreign-country rules summarized here are general and change; your situation is confirmed in the engagement. See our full legal disclaimer.