Table of Contents
Two Countries, Two Returns
As expat: two tax systems. German (you leave but it doesn't immediately let go) and Cypriot (from 2026: mandatory return for ALL residents 25+). Cypriot return: simpler and cheaper. CMC handles Cyprus, coordinates with German advisor.
Germany Changes
Exit year: last unlimited return (Jan 1 to moving date). Then: limited liability on German income. Exit tax (§6 AStG) on GmbH shares. Notification obligation. Most complex year – coordinate CMC + German advisor.
This was exactly our experience: German (you leave but it doesn't immediately let go) and Cypriot (from 2026: mandatory return for ALL residents 25+). Cypriot return: simpler and cheaper.
– Couple from Bremen, in Paphos since 2024
Cyprus New
2026: mandatory return for ALL residents 25+ (even €0 income). Via TAXISnet. TIC needed. Exemption: €22,000. CMC creates TAXISnet access, files return. Included in advisory package.
Optimal Split
Example: IT freelancer, €80K via own Ltd. Split: €30K salary (tax €1,600 + social €3,500) + €50K dividend (Non-Dom: 0%). Total Cyprus: €5,100. Germany same income: €38,000. Annual saving: ~€33,000. Legal application of DBA + Non-Dom.
Tax Return as an Expat
Topics: Two Countries, Two Returns, Germany Changes, Cyprus New
CMC Practical Tip
German (you leave but it doesn't immediately let go) and Cypriot (from 2026: mandatory return for ALL residents 25+).
Frequently Asked Questions
Exit year: yes (Germany last unlimited). After: Cyprus mandatory (all residents 2026+). Germany: limited return only if German income remains.
CMC clients: included in advisory. Separate: €300-800/year. CMC: cheaper and coordinated with Germany.
€22,000/year tax-free. Then 20-35% progressive. Retirees with €18,000 pension: €0 Cyprus tax.
Fine €100-500 + back-taxes + interest. CMC ensures no deadline missed.
How CMC Supports You
At CMC Certus Management Consultants, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.