From Germany to Cyprus
Germany taxes you on the way out. Cyprus taxes you less on the way in.
German top tax runs around 47.5% with the solidarity surcharge, and leaving with more than 1% of a company means you owe tax on the unrealised gain. Cyprus answers with a 60-day residency route and 0% on dividends for 17 years. Here is how to move without paying twice.
~47.5%
German top income tax + Soli
1%
Exit-tax trigger on holdings
15%
Cyprus corporate tax from 2026
0%
Cyprus non-dom tax on dividends
- Cyprus lawyers + auditors, one team
- Founders from 12+ countries
- Fixed-fee written scopes
- Paphos · Limassol · Nicosia
Step 1 · Germany today
What you actually pay living in Germany
Here’s the headline tax burden a German founderfaces in 2026 — income tax, tax on dividends and investment income, wealth or property-style taxes, and anything due on the way out. Regional and social-security add-ons are included where they materially change the number.
| Income tax — top marginal | 42% above ~€68,000; 45% above ~€278,000 (plus 5.5% solidarity, plus 8–9% church tax for members) |
| Tax on dividends, interest and capital gains | 25% flat + 5.5% solidarity + 8–9% church = about 26–28% effective |
| Corporate tax | 15% corporate tax + 5.5% solidarity = 15.825% |
| Trade tax (Gewerbesteuer) | Varies by city; roughly 14% on top, around 17% in Munich |
| Combined corporate burden | Roughly 30% in most cities |
| Social insurance | About 40% combined employer + employee on gross, up to the annual caps |
| Exit tax on company shares | If you hold at least 1% of a company and have been German-tax-resident long enough, leaving is treated as a sale at market value. Paid over 7 years, interest-free, with security. |
| 10-year tail on German-source income | For German citizens moving to a country that gives them a clearly better tax deal, Germany can still tax German-source income for 10 years after departure |
Step 2 · Side by side
Germany vs Cyprus, line by line
Tap any row for the full “why this matters” explanation. The two columns are the two sides of the decision — what you pay today versus what you’d pay with Cyprus non-dom.
Interactive · 30-second estimate
See what a move to Cyprus is worth for you
Enter your annual distributed dividend income below. The calculator shows what you’d pay today in Germanyversus what you’d pay as a Cyprus non-dom, with a live side-by-side.
Assumes the full amount is distributed as dividends (or equivalent investment income) and the Germany effective tax on dividends (incl. solidarity) of 26% applies. Cyprus side assumes non-dom status plus the capped 2.65% health contribution. Real numbers depend on your full picture — we confirm on a free call.
Germany today
Tax paid
€66,000
You keep
€184,000
Cyprus non-dom
Tax paid
€4,770
You keep
€245,230
Your estimated saving
€61,230/ year
Over the 17-year Cyprus non-dom window: €1,040,910
24.5% of income back
Step 3 · Why the move
The structural issues driving German founders out in 2026
Around 30% corporate, with no quick relief coming
Corporate tax plus trade tax plus solidarity usually lands between 29% and 31% depending on the city. A small step-down is planned over the next several years, but the Cyprus number today is 15% — and closer to 3% for qualifying intellectual property income.
26–28% on every euro of investment income, forever
Dividends, interest and capital gains on shares are all taxed at a flat rate plus solidarity plus church tax — roughly 26–28% effective on each euro. Cyprus non-dom: 0% on dividends and interest for 17 years, plus a small capped health levy.
The exit tax is planning, not a blocker
If you hold 1% or more of any company and you've been German tax resident for 7 of the last 12 years, moving abroad triggers a deemed sale of those shares. The tax is real, but the 2022 reform lets you pay it over 7 annual instalments, interest-free. If you return within 7 years (extendable to 12), it's reversed. The game is timing, not avoidance.
Step 4 · The Cyprus answer
Cyprus in one screen
The simplest founder tax position in the EU after the 2026 reform: low corporate rate, zero tax on dividends for non-doms for 17 years, no wealth tax, no inheritance tax. Six numbers tell most of the story.
Corporate income tax
15%
Flat; IP Box effective ≈3%
SDC on dividends (non-dom)
0%
For 17 years
Top personal tax
35%
First €22,000 at 0%
CGT on non-RE shares
0%
Only Cyprus real-estate shares are taxed
Wealth / net worth tax
None
No annual wealth levy
Inheritance / gift tax
None
Abolished decades ago; not coming back
Step 5 · Life in Cyprus
Beyond the tax math — why founders actually stay
Tax moves people in. Life keeps them here. Nine practical reasons families settle, beyond what the spreadsheet says.
Climate
340+ sunny days — #1 climate globally
More than 340 sunny days a year. Winter lows rarely below 13–15°C on the coast; sea swimmable April–November. WhereNext ranks Cyprus #1 for climate in 2026.
Safety
Among the 15 safest countries in the world
Ranked 13th globally by Global Finance 2026. Homicide rate 0.4–0.8 per 100,000. Low violent-crime environment — families notice within weeks.
Language
English + common-law legal system
English is the default business language; courts and contracts run in English. The legal system is inherited from the UK — familiar for founders from UK, US, Ireland and the Commonwealth.
Healthcare
Universal GESY since 2019 + strong private
Public healthcare covers everyone at ~2.65% of income. Cyprus has one of the EU's lowest death-rates from preventable causes. Private insurance adds €150–€300/adult/month — half of Western Europe.
Schools
British, American and IB schools across the island
British curriculum (IGCSE, A-Levels), American, and International Baccalaureate options across Nicosia, Limassol, Larnaca and Paphos — with long waitlists filled by children of relocating founders.
Connectivity
Two airports, Europe and Gulf in 4 hours
Direct flights from Larnaca and Paphos to London, Paris, Frankfurt, Athens, Dubai, Tel Aviv, Milan and Barcelona. Most of Europe, the Gulf and the Levant inside a 4-hour flight radius.
Step 6 · Your right to live in Cyprus
As an EU citizen you don't need permission. You just register.
Your right to live in Cyprus comes from being an EU citizen. The paperwork simply records that — it doesn't grant anything. Two stages: the Yellow Slip on arrival, upgraded to permanent residence after five years.
Yellow Slip
Your EU registration certificate
Filed once you’ve moved, within four months of arrival. Cheap, fast, and valid for life. You show what you’ll be doing in Cyprus (working, running a business, living off income, or joining a spouse) and that’s it.
Deadline
4 months after you arrive
Processing
About a month
Validity
Indefinite
After 5 years
Permanent residence, automatically
Stay five years and your registration upgrades to unconditional permanent residence. Short trips don’t interrupt the clock, and your right can’t be lost unless you leave Cyprus for more than two years straight.
Step 7 · Becoming a Cyprus tax resident
Two ways in: 183 days, or just 60
Cyprus lets you become tax resident either by being here most of the year, or — if you’re mobile — by spending as little as 60 days a year here and meeting a few extra conditions. The second route is the one mobile founders use.
The 183-day rule
Spend more than 183 days of the calendar year in Cyprus and you’re a Cyprus tax resident — full stop, no other conditions. The day you arrive counts, the day you leave doesn’t. This is for people who genuinely live here most of the year.
The 60-day rule
All three of these need to be true in the same year (the 2026 reform removed the older fourth condition):
- 1You spend at least 60 days in Cyprus
- 2You don't spend more than 183 days in any other single country
- 3You have a home in Cyprus (owned or rented) and you run a business, work or hold a directorship here — kept active through the end of the year
In plain English: a Cyprus home, a Cyprus company or role, and 60+ days a year on the island. Dual-residency conflicts are now resolved through the tax treaty with your other country rather than by a blanket "not resident elsewhere" test. How the 60-day rule works in practice →
Step 8 · Non-dom status
17 years of 0% tax on your dividends, interest and rent
Cyprus keeps a simple promise for newcomers: as long as you’re not domiciled here, worldwide dividends, interest and rental income skip the defence contribution that Cypriots pay. That’s a 17-year window where your investment income effectively sees a 0% line on the Cyprus side.
Dividends
Domiciled: 5% + small health levy
Non-dom: 0% + small health levy
Interest
Domiciled: 17% + small health levy
Non-dom: 0% + small health levy
Rental income
Domiciled: Progressive income tax
Non-dom: Progressive income tax
How long does non-dom last?
You get 17 years of non-dom status as standard. Under the 2026 reform, two additional 5-year extensions are available at €250,000 each, taking the window up to 27 years in total. Deemed-domiciled residents can instead elect a flat €50,000/year contribution for 5 years in lieu of the variable defence contribution. Enacted and in force. Non-dom, plain English → · What happens after year 17 →
Step 9 · Leaving Germany
Leaving Germany cleanly
Moving to Cyprus only works if Germanystops claiming you for tax at the same time. The steps below are the ones that actually matter — the rest is paperwork your lawyer handles.
- 1
Give up your German home, not just your address
Registering out at the local office is not enough. German tax residency keeps going as long as you have a home here available for your use. Close or properly sublet the apartment, end the lease, and put the permanent home on the Cyprus side — your rental agreement, utilities, the lot. Only then does the German tax net open.
- 2
Plan the exit tax on your shares before you move
If you own 1% or more of a company, Germany treats the move as a deemed sale. The bill is real, but you can pay it in 7 interest-free instalments against security. Common pre-move moves: timing dividends before you leave, restructuring into a partnership form where the charge doesn't apply, or simply committing to stay out long enough that the holdings fit cleanly with your Cyprus life. We model all three.
- 3
Handle the 10-year tail on German-source income
Germany reserves the right to keep taxing German-source income for 10 years after a German citizen leaves for a country with clearly better tax — which includes Cyprus non-dom. The tail only covers German-source income, not your worldwide position, and the answer is to wind down the German sources and build a genuine centre of life in Cyprus. Non-German citizens are outside this rule entirely.
- 4
Decide what happens to the GmbH
The GmbH stays German-tax-resident no matter where you live. Three realistic options: keep it and stream dividends to your Cyprus holding (0% at source under EU rules when the Cyprus side has real substance — office, director, activity); put a Cyprus holding on top and restructure gradually; or wind it down after a final dividend. The right answer depends on ongoing German operations and the exit tax math.
Step 10 · Your relocation, month by month
From decision to non-dom, in five stages
The whole thing is usually a three-to-four month project for the paperwork, plus the time it takes you to physically relocate. See the relocation package →
- 1
Before you move
Get the exit side right
The biggest relocation mistakes happen at home, not in Cyprus. Confirm when your home-country tax residency actually ends, sort out any exit-tax exposure on company shares, and decide what happens to any existing business. This is where most of the money is made or lost.
- 2
Month 1
Set up the Cyprus side
If you plan to use the 60-day rule, you need a Cyprus company and a role in it. We handle the incorporation, registered office and tax registrations so it's ready before you arrive. About 5–10 business days.
- 3
Month 2
Move and file your Yellow Slip
You arrive, rent or buy a home, and file the Yellow Slip within four months. It's inexpensive, quick, and confirms your right to be here on paper.
- 4
Month 2 onwards
Build up your Cyprus days
Whichever route you use — 60 days with ties, or 183 days — the important thing is to track presence properly from day one. A simple log, boarding passes, and receipts are enough. We tell you when you've crossed the line.
- 5
Year 1
First Cyprus tax return, non-dom locked in
At the end of your first tax year we file the return that formally registers you as a Cyprus tax resident and non-dom. From that point forward, your dividends come to Cyprus on the 0% line for the next 17 years.
Step 11 · What it’s worth
Worked example: a GmbH owner taking out €400,000 of profit a year
The founder runs a GmbH that makes €600,000 of profit in a high-tax-trade city like Munich and takes €400,000 out as dividends each year. Compare that to the same business run through a Cyprus company with the founder as a Cyprus non-dom.
Today, in Germany
- Profit before tax€600,000
- Corporate + solidarity + trade tax (~30%)€180,000
- Distributable€420,000
- Dividend tax + solidarity + church (~28%)€117,600
- Take-home~€302,400
After the move
- Profit before tax€470,000
- Cyprus corporate tax (15%)€70,500
- Distributable€399,500
- Non-dom tax on dividend€0
- Health contribution (capped)~€4,770
- Take-home~€394,730
Annual net saving
~€92,000 per year
Over the 17-year non-dom window: ~€1.56m over the 17-year non-dom window
Step 12 · Common questions
FAQs from German founders
I own 100% of a German GmbH. How big is the exit tax if I move to Cyprus?
Does Cyprus count as a 'preferential regime' for the 10-year tail rule?
How do I get 0% on the Germany-to-Cyprus dividend flow?
I'm not a German citizen — does the 10-year tail still apply?
Do I need a visa for Cyprus?
How long does a clean Germany-to-Cyprus move actually take?
Find your fit
Which relocation package fits your Germany move?
Four quick questions — we’ll tell you which package fits and why, so your free consultation starts from a concrete plan instead of a blank page.
Package Finder
Answer 4 quick questions
Non-EU vs EU citizenship, days in Cyprus, Cyprus company needed, family composition — the same checks a lawyer would run on a first call.
Keep reading
Related guides for a move to Cyprus
Non-dom status, explained simply
The 17-year window of 0% on dividends, interest and rent — what it is and who qualifies.
Read guide →
The 60-day rule in practice
How mobile founders hold a stable Cyprus residency while still travelling most of the year.
Read guide →
Cyprus taxes 2026 — the full picture
Every Cyprus tax a founder actually pays, in one place, with the 2026 reform built in.
Read guide →
Will my home country still tax me?
The honest answer — when the move stops the clock at home, and when it doesn't.
Read guide →
Cyprus holding company — when it's worth it
Why many relocating founders interpose a Cyprus holding, and when they shouldn't bother.
Read guide →
The 50% salary exemption for new residents
If you're earning over €55,000 into Cyprus, half of it can come out of the tax base for 17 years.
Read guide →
Ready to price the move? Relocation package pricing · Cyprus company registration · Ongoing accounting
Official references
- BMF — Wegzugsbesteuerung (exit tax overview)
- BMF — 2026 tax changes
- DBA Deutschland–Zypern (official BMF page)
- Cyprus — Yellow Slip (EU citizen registration)
- Cyprus Tax Department — individual tax residency
Page last reviewed April 2026. Estimates only — not legal, tax or financial advice. No solicitor-client relationship is created by reading it. Book a free consultation for written advice on your situation.
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