Exit tax at home in Cyprus

Leaving your home country has its own tax rules: exit tax on company shares, residence tests and pensions. We plan the exit with you, together with your tax adviser at home.

GermanyExit tax on shares
United KingdomResidence test
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A founder working on a laptop at a cafe terrace in LimassolChecked 29 October 2026

Steps and timeline

  1. 1

    Review your assets

    Shares, pensions, property and the years you were resident at home.

    1–2 weeks
  2. 2

    Plan the move date

    Split year, deregistration and the first Cyprus tax year.

    before moving
  3. 3

    Deregister

    Paperwork at home; for German shares, the exit tax return and the instalment request.

    at departure

Documents

For the exit plan

0 of 6 ready

The exact list depends on your situation; we confirm it before filing.

Who does what

What you do

  • Share your situation and goals
  • Collect documents from home
  • Agree the scope of work in writing

What we do

  • Check the requirements for your case
  • Prepare the documents and file the application
  • Follow up until the decision

Your coordinator

  • Plans the work and next steps
  • Keeps one timeline for everything
  • Reminds you of renewals and deadlines

Common mistakes

  • Setting the move date before checking the 1% and 7-of-12-years test on German shares
  • Forgetting shares in foreign companies: German exit tax covers them too
  • Not asking for the seven yearly instalments when the tax is assessed
  • Paying out more than a quarter of the shares' value while away, which ends the return relief
  • Returning to the UK within five years after selling assets while away
  • Keeping a home at home that keeps you resident there under the treaty

What affects the cost

The price depends on your situation. We explain the scope and expected costs before work begins.

Home countryCompany shares of 1% or moreValue of shares and pensionsPlans to returnMove date in the tax year

Questions

Do I need an adviser from my home country?

Yes. Exit tax, residence tests and pension rules are set by your home country, so a specialist there checks them before you move. We then plan the move date and your first Cyprus return with them.

How much is the German exit tax on company shares?

Moving abroad counts as selling the shares. Example: you own 30% of a GmbH. You paid €25,000 and it is now worth €1,025,000. The gain is €1,000,000 and 60% of it, €600,000, is taxable. At the 45% top rate plus the 5.5% solidarity surcharge the tax is at most €284,850. On request you pay it in seven yearly instalments of about €40,693, usually against security. Our German exit tax calculator runs the same numbers.

Who pays the German exit tax?

It applies if you held at least 1% of a company, German or foreign, at any time in the last five years. You must also have been fully tax-liable in Germany for at least 7 of the last 12 years. The tax is due on the market value of the shares on the day you stop being German resident.

Does the German exit tax lapse if I come back?

Yes, if you return within seven years and the absence was only temporary. You must not have sold or transferred the shares, and payouts while you were away must not exceed a quarter of their value. The tax office can extend the seven years by up to five more if you still plan to return.

Does the UK charge an exit tax when I move to Cyprus?

There is no general exit charge for individuals. But a short absence can cost you. Say you were UK resident in at least 4 of the 7 years before leaving. If you return within five years, gains made while away are taxed in the year you return. Dividends from your own close company can be caught too.

Does Cyprus tax the gain again when I sell later?

Usually not. Cyprus exempts gains on shares and other securities from income tax. Capital gains tax applies only to Cyprus property and to shares in companies that own it. So a later sale from Cyprus normally adds no Cyprus tax on top of the exit tax.

Sources

Figures checked 29 October 2026. Rules change: we confirm them for your case before you act.

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