Property-Related Taxes in Cyprus

Non-residents are taxed in Cyprus only on income derived from Cypriot sources. Married couples are taxed separately.

Personal income tax is progressive, with rates ranging from 0% to 35%. Income up to €19,500 is exempt from tax. Rental income is subject to income tax after a standard 20% deduction for expenses, and non-residents must also pay a 2.65% General Healthcare System (GHS) contribution on gross rental income.

Capital gains from the sale of Cyprus-situated real estate acquired after 1 January 1980 are taxed at a flat rate of 20%. Corporate income is taxed at 12.5%, while corporate capital gains on immovable property are taxed at 20%.

There is no annual immovable property tax in Cyprus. Municipal charges apply and typically do not exceed €500 per year. Total roundtrip transaction costs when buying and selling property generally range from 7% to 15%.

Annual Property Tax

Cyprus does not levy an annual immovable property tax. The immovable property tax was abolished with effect from 1 January 2017.

Municipal authorities may impose local charges for services such as street lighting, sewerage, and refuse collection. These charges vary by municipality and property size but generally do not exceed €500 per year.

Income Tax Rates (2026)

Rental Income Tax

Rental income earned in Cyprus is subject to income tax. A standard deduction of 20% of gross rental income is allowed to account for income-generating expenses. As a result, taxable rental income is calculated as 80% of gross rental income.

In addition to income tax, non-resident individuals are required to pay a General Healthcare System (GHS) contribution on rental income at a rate of 2.65% of gross rental income. This contribution is payable on top of the normal income tax.

Capital Gains Tax

Capital gains arising from the sale of real estate located in Cyprus and acquired after 1 January 1980 are subject to capital gains tax at a flat rate of 20%. The taxable gain is calculated as the gross selling price less acquisition costs and qualifying improvement expenses.

Non-resident individuals are taxed only on capital gains derived from the disposal of property situated in Cyprus, at the same rate of 20%.

Corporate Taxation in Cyprus

Corporate income in Cyprus is taxed at a flat rate of 12.5%. Expenses incurred wholly and exclusively in the production of taxable income are generally deductible from gross corporate income.

Capital gains realized by companies from the disposal of immovable property located in Cyprus are taxed at 20%. Capital gains arising from qualifying corporate reorganizations are exempt from capital gains tax.

Property Buying Costs and Transaction Taxes