Five numeric examples of the 20% Cyprus tax on a property sale: exemption available, exemption used up, main residence, inherited property and a developer. Assumptions are stated, so you can swap in your own numbers.
Our guide to capital gains tax on a Cyprus property sale explains the rules. This article shows the arithmetic. The examples below use made-up numbers and stated assumptions. They are not a tax calculation for your case, and the inflation uplift in particular is an assumption, not the official index.
The calculation in six steps
- Sale price, minus selling costs (agent commission, legal fees)
- Minus the purchase price, uplifted by Cyprus consumer price inflation from the month you paid to the month you sell
- Minus purchase costs (transfer fees, legal fees) and documented improvements, also uplifted
- The result is the gain. Repairs and maintenance do not count as improvements
- Subtract your remaining lifetime exemption: 30,000 euro general, or up to 150,000 euro for a main residence
- Apply 20% to what is left
The 20% applies to Cyprus property whatever your tax residence, so a non-resident follows the same steps as a local.
Example 1: non-resident, exemption still available
Assumptions: apartment bought for 200,000 euro, purchase costs 8,000 euro, sold for 290,000 euro, selling costs 6,000 euro. Inflation uplift on the price, assumed at 12%, is 24,000 euro. You have never used the general exemption.
Gain: 290,000 - 200,000 - 24,000 - 8,000 - 6,000 = 52,000 euro. After the 30,000 euro exemption: 22,000 euro. Tax at 20%: 4,400 euro.
Example 2: the same sale, exemption already used
Same numbers, but you used the 30,000 euro on an earlier Cyprus sale. The exemption is a lifetime amount, so nothing is left.
Tax: 52,000 x 20% = 10,400 euro. The only difference from example 1 is 6,000 euro of tax, which is why you should track what you have already used.
Example 3: main residence
Assumptions: house bought for 250,000 euro and lived in for more than five years, documented improvements 30,000 euro, purchase costs 10,000 euro, selling costs 8,000 euro, sold for 420,000 euro. Assumed inflation uplift on price and improvements: 35,000 euro.
Gain: 420,000 - 250,000 - 30,000 - 35,000 - 10,000 - 8,000 = 87,000 euro. This is below the 150,000 euro main-residence exemption, so tax is zero, and 63,000 euro of that allowance remains for later.
If you cannot show five years of living there, with utility bills and bank statements, only the 30,000 euro applies: (87,000 - 30,000) x 20% = 11,400 euro.
Example 4: inherited property
A transfer on death is not itself taxed. The question is the cost base when the heir sells. We did not find a source that confirms how the tax office sets it, so this example only shows why it matters.
Assumptions: sale price 340,000 euro, selling costs 5,000 euro, no exemption used.
- If the base is the deceased's original cost, assumed at 150,000 euro after indexation: gain 185,000 euro, tax (185,000 - 30,000) x 20% = 31,000 euro
- If the base is the value at the date of death, assumed at 300,000 euro: gain 35,000 euro, tax (35,000 - 30,000) x 20% = 1,000 euro
The difference is 30,000 euro. Before selling inherited property, ask a Cyprus tax adviser which base the Tax Department applies and keep a valuation from the date of death.
Example 5: developer or one-off seller
Assumption: 100,000 euro of profit on a project.
- Treated as a one-off sale of a capital asset by an individual: (100,000 - 30,000) x 20% = 14,000 euro
- Treated as trading income of a Cyprus company: 15% corporate tax from 1 January 2026, so 15,000 euro, and paying the profit out as a dividend adds a further contribution, reported at 5%
The two figures are close, but the real difference is the treatment: repeated buying and selling, building for sale and short holding periods point to trading, and then the exemptions do not apply. Do not choose the label yourself; the Tax Department applies a fact-based test.
Reporting and paying
One practice guide says the declaration is filed and the tax paid within one month of the sale and before the transfer is registered. Confirm the date with your Cyprus adviser before you sign the contract.
Mistakes that cost money
- Using the old 17,086 or 85,430 euro exemptions instead of the 2026 amounts
- Forgetting that the exemption is for life and was partly spent on earlier sales
- No invoices for improvements, so the costs are disallowed
- Counting repairs as improvements
- Assuming the home-country tax is settled by the Cyprus payment; check the double tax treaty
FAQ
Is the Cyprus tax rate 20% for non-residents too? Yes, it applies to any seller of Cyprus property. How much is the exemption in 2026? 30,000 euro in general and up to 150,000 euro for a main residence, both lifetime. Is the purchase price adjusted for inflation? Yes, the cost is uplifted by Cyprus consumer price inflation. Can capital losses be offset? One adviser says yes against chargeable gains; ask yours. Does a mortgage change the tax? Not the tax itself; see our Cyprus mortgage guide for the financing side.
How we help
Before you buy, our guides on Cyprus prices and buying costs and rental yield help you plan the exit as well as the entry. We can introduce Cyprus tax advisers for a calculation on your property. This is general information, not tax or legal advice. The examples use assumed numbers and rules change, so confirm everything before you act.