Why You Don't Pay Tax Twice

DBA Germany-Cyprus (since 1974) determines which country taxes what. Correctly applied: every tax paid once only, often much less than Germany alone. CMC ensures correct implementation.

How It Works – With Examples

Salary from own Cyprus Ltd: only Cyprus taxes (€0 on first €22,000). German property rental: Germany taxes, Cyprus credits. German pension: under €22,000 exemption = €0 Cyprus tax. Dividends with Non-Dom: effectively 0%. Strongest advantage of the system.

This was exactly our experience: Why You Don't Pay Tax Twice DBA Germany-Cyprus (since 1974) determines which country taxes what. Correctly applied: every tax paid once only, often much less than Germany alone. CMC ensures correct...

– Business owner from Bonn, in Paphos since 2024

Common DBA Mistakes

1. No German deregistration (Germany claims worldwide income). 2. 60-day rule not met. 3. Exit taxation ignored (§6 AStG). 4. Advisor who knows only one country. CMC knows BOTH sides.

What CMC Does

Individual DBA analysis: income types, taxation rights, credit calculations, structure optimization, German coordination. Result: €5,000-20,000/year less tax. Free consultation: +357 95 140 797.

Avoiding Double Taxation

Topics: Why You Don't Pay Tax Twice, How It Works – With Examples, Common DBA Mistakes

CMC Practical Tip

Why You Don't Pay Tax Twice DBA Germany-Cyprus (since 1974) determines which country taxes what.

Frequently Asked Questions

Must I pay tax in both countries?

No – DBA prevents double taxation. Each income type assigned to one country. With CMC: total tax significantly less than Germany alone.

What if I don't deregister in Germany?

Germany assumes unlimited tax liability on worldwide income. Deregistration: first and most important step.

How much do I save?

€50K income: ~€5-8K. €100K: ~€10-20K. €200K+: €20-50K. Exact calculation: free CMC consultation.

Need two tax advisors?

If German income remains: yes. CMC coordinates both sides. No German income: CMC only.

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.

Further Reading