Cyprus taxes foreign pensions at a flat 5%, exempts non-doms from tax on dividends and interest for 17 years, and has no inheritance tax. The January 2026 reform rewrote most of the numbers — here they are, current.
Last verified: July 8, 2026Cyprus taxes residents on worldwide income at progressive rates. The 2026 tax reform — voted December 22, 2025, in force since January 1, 2026 — raised the tax-free band from €19,500 to €22,000:
| Taxable income | Rate |
|---|---|
| Up to €22,000 | 0% |
| €22,001 – €32,000 | 20% |
| €32,001 – €42,000 | 25% |
| €42,001 – €72,000 | 30% |
| Above €72,000 | 35% |
On top of income tax, passive income carries the Special Defence Contribution (SDC) — unless you're a non-dom — and the 2.65% GHS health contribution (on income up to €180,000/year).
| United States | Canada | |
|---|---|---|
| Keep filing? | Yes — citizenship-based taxation follows you. FEIE ($132,900 for 2026) covers earned income only; pensions rely on foreign tax credits. | Generally no, after ceasing Canadian tax residency — but watch departure tax on deemed disposition. |
| Treaty | US–Cyprus treaty signed 1984, in force 1986. US Social Security stays taxable by the US. | Canada–Cyprus convention (1984): withholding on periodic pensions capped at the lesser of 15% or the notional-return rate. |
| Social security | No totalization agreement — self-employed Americans risk double contributions. | Agreement in force since May 1, 1991 — CPP/OAS coordinate and export. |
| Accounts reporting | FBAR above $10,000 aggregate; FATCA Form 8938 on top. | T1161/T1243 territory on exit; standard CRA rules until departure. |
How Cyprus taxes your Social Security, IRA, CPP or RRIF — with worked examples — and how 17 years of 0% on dividends and interest works.
Read the guide →Who can use it, the four conditions, and why most retirees take the 183-day route anyway.
Opening an account, FATCA friction, and moving retirement income across without losing 3% to fees.
US and Canadian tax obligations don't stop at the border. We'll match you with a cross-border tax adviser we've checked ourselves — credentials, licensing, and real client outcomes in Cyprus.