Tax for landlords & property owners in Cyprus
Cyprus is unusually light on property tax, which makes it attractive for landlords, but the rules still reward those who file correctly and claim everything they are entitled to. There is no annual immovable property tax, and from 2026 the Special Defence Contribution that used to apply to rental income has been abolished, so the running burden on rents has fallen. What remains is straightforward but easy to get wrong: an individual landlord is taxed on rental income under the normal income tax bands, where the first €22,000 of total income is tax-free, after a deemed deduction of 20% of gross rent that leaves 80% taxable, plus the GHS levy at 2.65%. On sale, Capital Gains Tax of 20% applies to the gain on Cyprus immovable property, after indexation and the lifetime exemptions of €30,000 general, €50,000 agricultural and €150,000 for a main residence. Holding personally versus through a company, and the VAT and transfer-cost questions on acquisition, all change the outcome. We handle the returns and the planning.
What we take off your plate
Rental income returns
An individual landlord is taxed on 80% of gross rent, after the 20% deemed deduction, under the income tax bands, plus GHS at 2.65%. We compute the taxable figure, include it in your annual return and make sure the deduction and any further allowable costs are correctly applied.
SDC abolished, but GHS remains
The Special Defence Contribution on rents was abolished from 2026, removing a charge that previously hit Cyprus-domiciled landlords. GHS at 2.65% still applies, however, and the change interacts with your domicile status, so the net position should be reviewed rather than assumed.
Hold personally or via a company
Holding property in your own name is simple and uses your personal tax-free band; a company gives the 15% corporate rate, liability separation and succession flexibility but adds running and audit costs. We model both against your portfolio size and plans before you commit.
Capital Gains Tax on disposal
Selling Cyprus immovable property triggers 20% Capital Gains Tax on the gain, after inflation indexation, allowable acquisition and improvement costs and the lifetime exemptions of €30,000, €50,000 for agricultural land and €150,000 for a main residence. We compute the liability and apply every relief so you do not overpay.
VAT & transfer costs on acquisition
Buying property raises VAT at 19%, or a reduced 5% on a qualifying primary residence within strict conditions, against transfer fees on resales. Which applies changes the total acquisition cost materially, so the treatment should be confirmed before you sign rather than discovered afterwards.
Short-term lets & multiple properties
Short-term and holiday lets can bring VAT and registration obligations that long lets do not, and a growing portfolio multiplies the record-keeping. We keep income, expenses and capital costs organised per property so returns are accurate and future disposals are easy to compute.
The services that fit
Tax Compliance
Corporate and personal income tax returns, provisional tax and SDC — prepared accurately and filed on time.
Learn moreTax Advisory & Planning
Strategic, fully compliant tax structuring for Cyprus companies, groups and individuals — built around the 2026 framework.
Learn moreTax for Individuals & Non-Dom
Personal tax returns, relocation, tax-residency and the non-dom regime — for expats, investors and professionals.
Learn moreFrequently asked questions
An individual landlord deducts a deemed 20% of gross rent, so 80% is taxable under the normal income tax bands, where the first €22,000 of total income is tax-free. GHS at 2.65% also applies. The Special Defence Contribution that previously applied to rents was abolished from 2026, reducing the overall charge on rental income.
No. Cyprus does not levy an annual immovable property tax on ownership. Only modest local municipal and community charges apply for services. This absence of a recurring holding tax is one of the main reasons Cyprus is attractive to property investors compared with many other jurisdictions.
Capital Gains Tax at 20% on the gain from disposing of Cyprus immovable property, calculated after inflation indexation and allowable acquisition and improvement costs. Lifetime exemptions reduce the taxable gain: €30,000 generally, €50,000 for agricultural land farmed by the owner and €150,000 for a main residence, subject to conditions.
Personal ownership is simpler and benefits from your tax-free band and the 20% deemed deduction; a company offers the flat 15% rate, liability separation and easier succession but carries formation, accounting and audit costs. The better route depends on portfolio size, income and plans, which we model before you decide.
The 20% deemed deduction is a standardised allowance against gross rent for individuals, applied before tax on the remaining 80%. Depending on circumstances, interest on a loan to acquire the property and capital allowances on the building may also be available. We confirm which deductions apply to your situation so nothing is left unclaimed.
Short-term and holiday accommodation can carry VAT and registration obligations that ordinary long-term residential lets do not, and the income still feeds into your income tax position. If you let through platforms or run several short-let units, the VAT and reporting treatment should be reviewed so you stay compliant as the activity grows.
Useful tools & guides
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