«Alexis, I’ve been running a service company from Limassol for two years. My Cypriot accountant handles the local side, but nobody looks at the French side. That worries me.»
Cyprus hosts 1,268 French citizens registered with the consular register as of December 31, 2025: this is the smallest number in our sample, but also the strongest growth, at +15.48 % over one year. The community is concentrated in Limassol and Nicosia, around services, maritime and technology.
It's a destination where half the case is often handled well—the Cypriot side, by a local accountant—and the other half is left unattended. Yet it's precisely the French side that carries the risks: an old tax treaty, the absence of an inheritance treaty, and a tax residency that mobility sometimes renders uncertain.
At the house of Balmont Conseil, We do not interfere in Cypriot law. We are handling the French side, and we are ensuring that both halves of the case are consistent.
1. Why seek expertise in wealth management In Cyprus?
Four topics, for an expatriation that is often entrepreneurial.
- Effective tax residence. An activity managed from Cyprus but partly carried out elsewhere raises the question of domicile and, for companies, that of the effective management headquarters. This is the first point to secure, through evidence.
- The absence of a succession agreement. Nothing allocates the right to tax death benefits between France and Cyprus. Article 750 ter of the French General Tax Code applies without modification.
- European advantages. Exemption from CSG and CRDS for an affiliate of the Cypriot scheme, and automatic deferral of exit tax for departure to a Member State.
- The 1981 convention. It is old but well constructed: it includes an article on wealth, allocates pensions to the state of residence and reserves social security pensions to the state that pays them.
2. The France ↔ Cyprus framework in five verified points
Voici le cadre applicable, vérifié dans le texte même de la convention et dans les sources officielles au 15 septembre 2026.
| Français inscrits au registre | 1,268 as of December 31, 2025 (+15.48 % (over one year), the strongest growth in the panel. |
| Convention sur le revenu | Yes — Convention of 18 December 1981 (Official Journal of 30 March 1983), concerning income and capital. Pensions are taxable in the State of residence (Article 19), except for pensions paid under social security legislation, which are taxable in the State paying them. Dividends: 10 % or 15 % (Article 10). Interest: 10 % (Article 11). |
| Convention sur les successions | None. Cyprus is included in the list of conventions concluded by France only with regard to income and wealth. |
| Exit tax — sursis de paiement | Automatic payment deferral, without guarantee. Cyprus is a member state of the Union and has with France all the clauses for the exchange of information and assistance in recovery. |
| CSG et CRDS sur les revenus du capital | 7.5 % only. A person affiliated with a Cypriot mandatory scheme is exempt from CSG and CRDS; only the solidarity levy remains due. Boxes 8SH or 8SI of form 2042 C. |
Article 24 of the convention is useful to know. It assigns the taxation of real estate wealth to the state where the property is located, and stipulates that all other assets are taxable only in the state of residence. Therefore, for a Cypriot resident owning property in France, real estate wealth tax remains due only on the French assets.
The absence of a succession agreement is the fundamental issue. Article 750 ter of the French General Tax Code applies without modification: paragraph 3 makes all assets received by an heir domiciled in France for at least six of the last ten years taxable in France. Article 784 A only allows for a capped deduction.
Ce que nous n’affichons pas. Cypriot tax rates, the tax regime for non-residents, and the local treatment of foreign life insurance policies are not included in this table: these matters are governed by Cypriot domestic law and should be verified with an authorized advisor on-site. We do not use unsourced figures.
3. Nos services : un accompagnement à 360° pour expatriés et investisseurs
Three construction sites, on the French side.
Securing tax residency
We establish a written position on your tax residence with regard to Article 4 B of the General Tax Code, then the conventional criteria in case of conflict: home, main residence, professional activity, center of economic interests.
For entrepreneurial activity, we also look at where the actual management of your structures lies. This point is often overlooked, yet it is crucial.
- A reasoned and dated position on tax domicile.
- A body of evidence has been compiled and preserved.
- Examination of the location of effective management of the structures.
Addressing the inheritance blind spot
In the absence of an agreement, we model the transfer with regard to domestic law alone and we quantify the French charge, with and without imputation under article 784 A of the general tax code.
The result depends on the residence of each of your heirs: we note this from the first interview, even before discussing your assets.
European advantages and French heritage
We check that your Cypriot affiliation entitles you to exemption from CSG and CRDS and that boxes 8SH or 8SI are filled in, if necessary with a claim for the years not prescribed.
We monitor your French assets — rental income at the minimum non-resident rate under Article 197 A of the French General Tax Code (CGI), opting for the average rate when more advantageous, and real estate wealth tax — and we examine the portability of your investment vehicles, particularly the benefits of a contrat d’assurance-vie luxembourgeois subscribed to under the freedom to provide services agreement.
4. Méthodologie : notre façon de travailler
Nous travaillons en quatre temps, et vous savez à chaque étape où vous en êtes.
- Le bilan d’entrée. Nous relevons votre situation réelle : composition du patrimoine, calendrier du projet, situation de chaque membre du foyer, et domicile fiscal de vos héritiers — car c’est le leur qui commande, pas le vôtre.
- Le référentiel applicable. Nous établissons, source par source et avec sa date, le cadre qui vous concerne. Ce que nous ne savons pas, nous l’écrivons « à confirmer » — jamais autre chose.
- Les arbitrages. Nous vous présentons les options chiffrées, avec leurs conséquences respectives, et vous décidez. L’ingénierie patrimoniale vient après la décision, pas avant.
- Le suivi. Une revue annuelle, offerte, qui vérifie que le cadre n’a pas bougé — les conventions sont modifiées, les régimes d’attractivité sont supprimés, les seuils changent.
5. Ce que vous apporte le cabinet
Ce qui distingue concrètement notre intervention.
- Des sources, pas des affirmations. Chaque élément de votre dossier porte sa référence et sa date. Vous pouvez vérifier. C’est la seule façon de travailler sur un sujet où l’information disponible en ligne est majoritairement périmée.
- Un interlocuteur unique, en France. Nous coordonnons vos conseils locaux, nous ne les remplaçons pas : la fiscalité interne du pays d’accueil se traite avec un professionnel habilité sur place. Notre rôle est de tenir la cohérence d’ensemble et de défendre le côté français du dossier.
- Des honoraires lisibles. Honoraires du cabinet : 500 € TTC de l’heure. Le suivi annuel est offert. Pas de rétrocession masquée, pas de facturation à la performance.
Frequently Asked Questions about Cyprus
Is there a succession agreement between France and Cyprus?
No. The convention of December 18, 1981, deals with income and wealth tax. It does not govern inheritances or gifts.
Common membership in the European Union changes nothing: France has concluded succession agreements with only eight out of twenty-seven member states, and Cyprus is not one of them.
Am I still liable for the wealth tax on real estate in France?
Yes, this applies to your real estate located in France. Article 24 of the 1981 convention assigns the taxation of real estate wealth to the State where the property is located.
However, the other elements of your wealth are taxable only in your state of residence. This is a standard allocation, but it's important to apply it correctly, especially when dealing with real estate-heavy companies.
Can my Cypriot residency be challenged?
It may be so if the factual elements do not support it. Tax domicile is determined by the home, the principal place of residence, the professional activity and the center of economic interests, within the meaning of Article 4 B of the General Tax Code.
For an entrepreneur whose business is inherently mobile, the question also arises at the structural level, through their effective management headquarters. This is the point we are documenting as a priority.
How can I obtain CSG exemption on my French income?
By being affiliated to a compulsory Cypriot social security scheme and declaring it: boxes 8SH or 8SI of the 2042 C declaration, with proof of affiliation retained.
Your French-source property income and capital gains are then subject only to the solidarity levy of 7.5 %, instead of 17.2 %.
Do you intervene in Cypriot taxation?
No, and that's deliberate. Cypriot tax law is handled by a qualified professional on the ground, who assumes responsibility locally.
Our role is to maintain the French perspective on the matter—residence, inheritance, assets held in France, social security contributions—and to ensure that the two analyses are consistent. This is where the most costly inconsistencies lie.
En résumé
Cyprus is the most dynamic destination in our panel proportionally, and the one where the French side of the issue is most often left out.
European benefits are acquired there — exemption from CSG (social security contributions), automatic deferral of exit tax. The two issues to be addressed are the stability of the residence and the absence of an inheritance agreement.
Honoraires du cabinet : 500 € TTC de l’heure. Le suivi annuel est offert.
Faisons le point sur votre situation
A thirty-minute exchange is all it takes to verify the soundness of your residence and your CSG exemption. You can also start with a radiographie gratuite de vos contrats.
Les autres destinations
UNITED STATES · Canada · Germany · Israel · Morocco · Algeria · The Netherlands · Australia · Lebanon · Ivory Coast · Ireland · Greece · Monaco · Andorra — ou revenez à l’ensemble de nos destinations d’expatriation.
