From the US to Cyprus: Unlocking 0% Capital Gains on Investments

(real client enquiry)

Hi CYAUSE,

My wife and I (both EU citizens and US tax residents in 2025) plan to relocate to Cyprus in 2026 to benefit from the local tax regime.

We have already confirmed with our US accountant that we will not owe any exit tax or have other liabilities beyond the 2025 tax year. 

We hold unrealized capital gains in NYSE-listed securities and intend to realize these gains under Cyprus’s 0% capital gains tax rate for securities, immediately reinvesting the proceeds into UCITS securities. 

We would like to receive professional advice regarding any potential risks associated with this move, specifically concerning the risk that these capital gains could be taxed. Additionally, should we decide to proceed, we would like to request your support with filing our taxes. 

Thank you,

Dear Client, 

Nice to e-meet you and thank you for your interest in our services. 

We can assist you on both consulting and your tax filings. 

Since the capital gains in NYSE-listed securities do not concern real estate, we confirm that no capital gains tax applies.  

In the meantime, I assume by relocating to Cyprus the below conditions will be met from your side - kindly confirm:

1. You will stay in Cyprus for at least 60 days and no more than 183 days in any other country (during a calendar year January-December) OR
2. You will stay in Cyprus for more than 183 days (during a calendar year January-December) 
3. You will not be considered a tax-resident elsewhere (as you mentioned neither in the US) 

The above are very important for your tax status in Cyprus. 

Kindly note that since you will become a Cyprus-taxed resident you will be obliged to declare your worldwide income here and pay the relevant taxes (depending on the source of income etc). 

In the meantime, let us know if you would like to schedule a call to meet and discuss further in details and any questions you may have. 

At your disposal ,

Kind regards, 

Dear CYAUSE,

Thank you for your reply.

I can confirm that we are planning to spend at least 183 days in Cyprus this year, and we will ensure that we do not trigger tax residency conditions in any other country.

Regarding the call, we are available most of the day next Monday and Tuesday. Please let me know if either of those days works for you.

Thank you,

A call followed between CYAUSE and the Client.

Dear Client, 

It was a pleasure meeting both of you yesterday! 

As per our discussion, below you will find our services as per your needs and the relevant cost:

• Yellow slip: EUR 600 + VAT + Disbursements per application (once-off) 
• Registration with the tax authorities (including online access to the relevant platforms): EUR 175 + VAT per registration (once-off) 
• Preparation and submission of personal tax return: EUR 150 + VAT per application (annual). If complexity increases additional cost may apply.  
• Non-domiciled application: EUR 800 + VAT per application (once-off) - for future purposes. Additional services will be provided in this case (to be discussed in the future)

Useful information:

• Rentals in Cyprus: Here  you can find various properties for long-term rent (or acquisition). Feel free to use the filters to select the price, area, city etc. 

• Tax Rates for individuals: 

€0 – €22,000 — 0% (tax‑free)

€22,001 – €32,000 — 20%

€32,001 – €42,000 — 25%

€42,001 – €72,000 — 30%

Above €72,000 — 35%

• Tax residence requirements in order to be considered a Cyprus taxed resident:

1. Spend in Cyprus at least 183 days during a calendar year (January-December) OR
2. Spend in Cyprus at least 60 days and no more than 183 days in any other country  during a calendar year (January-December)
3. AND Not to be considered a taxed resident elsewhere. This always depends on the tax legislation of the country you spend days in.

For example, in X's case (Portugal-after a quick internet search) she needs to ensure that she stays in Portugal < 6 months (during a calendar year January-December) and that the property she holds is not her main residence (even if she stays less than 6 months). This must be discussed further with her Portuguese accountants.

At your disposal for any clarifications, 

Kindest regards, 

Dear CYAUSE,

Thank you very much for the call and for sharing the detailed quote and information.

My wife and I will be discussing our move now. We will be in touch if we decide to proceed with the move to Cyprus.

Best regards,