Using a US LLC in Cyprus to Live Tax-Optimized in Europe

Benefits of a US LLC for Non-US Citizens

A US LLC (Limited Liability Company) is a flexible, simple, and internationally recognized legal form in the USA. It is especially attractive for individuals living outside the US who run their business globally.

Tax Advantages:

0% US income tax with the right structure:

• • No customers in the USA

  • No US permanent establishment

  • No physical activities in the USA

• Only annual reporting requirements (Form 5472 & 1120)

• Profits are treated as personal income, not dividends

For non-US citizens, this means: no US taxation — income is taxed in the country of residence.

Cyprus offers an ideal environment for entrepreneurs who want to live tax-optimized legally in Europe. As an EU country with English as an official language, low living costs, and attractive tax regulations, it is a popular location for international businesspeople.

Income tax rates in Cyprus::

This means: up to €19,500 income, you pay no income tax.
Even at higher income levels, the tax burden is significantly lower compared to Germany, Austria, or France.

The strategy works as follows:o:

1. You form a US LLC in a low-tax state (e.g., Wyoming)
2. The LLC earns income worldwide (e.g., e-commerce, consulting, digital services)
3. You are the 100% beneficial owner of the LLC
4. Profits are treated as your personal income for tax purposes
5. You pay taxes in Cyprus — but thanks to allowances and low rates, the burden stays low

Important: The LLC has no permanent establishment in the USA. It is used solely as a source of income.

Maria has lived in Cyprus for 2 years and owns a US LLC in Wyoming. She:

• Works location-independently with international clients

• Earns €40,000 profit annually through her LLC

• Transfers the money to herself as personal income

Pays only about €5,000–7,000 income tax in Cyprus
Pays 0% tax in the USA, only reporting requirements

Result: Simple, legal, and much cheaper than in Central Europe.

To use a US LLC in Cyprus for tax-optimized living in Europe, you need:

• Residence in Cyprus with tax registrationg

• US LLC without US customers or physical presence

• Separate business accounts for the LLC

• Accounting and tax filings (USA & Cyprus)

• Willingness to pay income tax in Cyprus (at low rates)

• Digital nomads

• Freelancers & consultants

• Online coaches & agency owners

• Crypto & Web3 projects

• Solopreneurs with global clientele