Cyprus Tax Audit Letters Explained – Legal Guidance for U.S.-Based Expats

Tax Audit from Cyprus While Living in the U.S.: What You Need to Do if You Receive a Tax Notice

???? Introduction

Receiving a tax audit notification from the Cyprus Tax Department can be stressful — especially if you’re living abroad in the United States.

Many U.S.-based Cypriots receive:

• A request for tax documents

• A notice of tax assessment

• A warning letter for overdue returns or unpaid taxes

These letters often require prompt legal action to avoid penalties, interest, or even enforcement.

???? What Triggers a Tax Audit?

• Rental income from property in Cyprus not declared

• Dividends or interest from Cyprus-based accounts

• Non-filing of tax returns for multiple years

• Real estate sales without Capital Gains Tax (CGT) declaration

• Cross-checking with banks, land registry, municipalities, or external auditors

???? Types of Letters You May Receive

1. Notification Letter – indicating an audit will be performed

2. Request for Supporting Documents – including bank statements, contracts, tax forms

3. Tax Assessment Notice – specifying the tax owed

4. Reminder or Demand Letter – requiring action within a timeframe

5. Final Warning Before Legal Action

???? What You Should Do

1. Do not ignore the letter. Most have strict response deadlines (usually 30 days)

2. Contact a tax lawyer in Cyprus immediately

3. Gather the relevant documents

4. If you disagree with the tax calculation, consider filing an administrative appeal

5. If tax is owed, explore installment plans or compromise settlements

????️ Your Rights as a Taxpayer

• To receive a written explanation of the audit

• To review all documents used in the assessment

• To appoint a lawyer via Power of Attorney

• To file an administrative appeal within 60 days

• To pursue a case in the Cyprus Administrative Court, if needed

???? How E. CHATZIDIMITRIOU LLC Can Help

We provide full legal representation for U.S.-based Cypriots:

• Respond to audit letters on your behalf

• Collect and submit all required documentation

• Review the legality and accuracy of the tax assessment

• File administrative appeals or legal objections

• Negotiate settlements or apply for payment plans

• Follow the process until full resolution or clearance

All services are performed remotely, without the need to travel to Cyprus.

???? Contact Us Today

???? Website: www.hatzidimitriouvirtuallaw.com

???? Email: info@hatzidimitriouvirtuallaw.com

???? U.S. Phone: +13474034789

Received a tax audit letter from Cyprus? Let us protect your rights — without boarding a plane.