Cyprus taxes property gains at 20% for everyone, including non-residents, but the lifetime exemptions were raised from 1 January 2026. Many websites still quote the old figures.
Cyprus is one of the few EU markets where a foreign owner pays capital gains tax on a property sale on the same terms as a local, and where the rules changed recently in the seller's favour. If you read a Cyprus guide that mentions a 17,086 euro or 85,430 euro exemption, it is out of date.
The rate and who pays it
Capital gains tax in Cyprus is 20% of the taxable gain on immovable property located in Cyprus. It applies to every seller regardless of tax residence, so a non-resident owner is taxed on the same basis. The 2026 tax reform left the rate unchanged and lowered the threshold at which a sale of shares in a company is taxed: shares are now caught if at least 20% of the company's value comes, directly or indirectly, from Cyprus property, down from 50%.
The lifetime exemptions from 1 January 2026
Cyprus gives each individual a lifetime allowance against gains, and the 2026 reform raised all three:
- General exemption: 30,000 euro, up from 17,086 euro
- Agricultural land (for farmers): 50,000 euro, up from 25,629 euro
- Main residence: 150,000 euro, up from 85,430 euro
These are lifetime amounts, not per-sale amounts: whatever you use on one sale is gone for the next. One source adds that the main residence exemption requires the property to have been occupied as your home for at least five years, evidenced by utility bills or bank statements; another does not mention a holding period, so confirm the condition for your case. Press coverage says the new levels stay in force until 2030.
How the gain is calculated
The taxable gain is the sale price minus the acquisition cost, adjusted for inflation, and minus allowable expenses such as legal fees, transfer fees, agent commissions and documented improvement costs. For property acquired before 1980, the market value at 1980 is used as the starting point instead. Keep every invoice: costs without paperwork are routinely disallowed.
Transfers inside the family
Transfers between spouses or between parents and children are exempt from capital gains tax if the statutory conditions are met. The catch is that the recipient who later sells is taxed on the gain measured from the original acquisition value, so the tax is deferred, not removed.
Filing and payment
The seller declares the gain to the Cyprus Tax Department and, according to one practice guide, pays within roughly one month of the disposal. The same guide reports late-filing penalties of 250 to 2,000 euro since 1 January 2026, plus interest. Treat these as indicative and confirm the deadline with a Cyprus accountant before you sign.
Your home country
Cyprus tax does not close the question. Your country of residence may also tax the gain, and whether you get a credit for the Cyprus tax depends on the double tax treaty and your tax status. Ask before the sale, not afterwards.
Sale-day checklist
- Gather the purchase contract, proof of payment and every invoice for improvements, legal fees and agent commission
- Work out how much of your lifetime exemption you have already used on earlier sales, in Cyprus
- Check whether the main residence conditions are met and can be documented
- Confirm the filing and payment deadline and who files it for you
- Ask your home-country adviser how the Cyprus tax will be credited
FAQ
Do non-residents pay capital gains tax in Cyprus? Yes, the 20% tax applies to disposals of Cyprus property regardless of tax residence. What are the exemptions in 2026? 30,000 euro general, 50,000 euro agricultural and 150,000 euro for a main residence, all lifetime amounts, from 1 January 2026. Does the old 17,086 euro figure still apply? No, it was replaced from 2026. Can I sell to my child without tax? Transfers between parents and children can be exempt under the statutory conditions, but the recipient's later sale is taxed from your original cost. Does selling shares in a property company avoid it? No, from 2026 a company with at least 20% of its value in Cyprus property is caught.
How we help
We help owners think through the timing of a sale and introduce Cyprus tax advisers who can run the numbers for a specific property. This is general information, not tax or legal advice; the figures were verified from public sources at the time of writing, and rules change, so confirm them before you act.