Capital Gains Tax When Selling Property in Cyprus: 2026 Guide

Capital gains tax in Cyprus is a flat 20%. It applies to gains from disposing of immovable property situated in Cyprus, and to gains from disposing of shares in companies that own such property. There is no separate lower or higher band — the single 20% rate applies to the taxable gain.

Because it is charged on the gain rather than the price, the deductions and exemptions below often reduce the bill substantially, and in some cases to nil.

Only on the gain. This is the most common misunderstanding among sellers. The tax is not 20% of what the buyer pays you; it is 20% of your profit — the sale proceeds minus what you originally paid (indexed for inflation) and minus allowable costs and exemptions.

So a property sold for €400,000 that you bought for €350,000 is taxed on a gain in the order of €50,000 before indexation and exemptions — not on €400,000. In many ordinary sales, once indexation and the lifetime exemptions are applied, the taxable gain is modest or zero.

The calculation follows a fixed order: start from the sale price, deduct the indexed acquisition cost and allowable expenses to reach the gain, then deduct any available lifetime exemption, and apply 20% to what remains.

Cyprus grants lifetime CGT exemptions that were increased under the 2026 reform. They are lifetime allowances (not per-sale), and the main-residence exemption also acts as the overall lifetime cap.

The 2026 tax reform materially increased the lifetime exemptions, most notably raising the general exemption from €17,086 to €30,000 and the main-residence exemption to €150,000. This reduces the CGT payable on many disposals and is the freshest, most consequential change for sellers.

Because the reform is recent, older calculators and articles still quote the previous figures. If a source shows €17,086 or €85,430, it predates 1 January 2026.

A range of costs reduce the taxable gain, provided they are documented. Keeping records from the day you buy pays off when you sell.

Indexation recognises that part of any nominal gain is just inflation, not real profit. Your acquisition cost (and eligible capital improvements) is increased in line with the official consumer price index between the date you acquired the property and the date you sell.

The effect can be significant on properties held for many years: a higher indexed cost means a smaller taxable gain. The indexation figures are published and applied to your specific dates, so the exact uplift is case-specific.

The seller pays. CGT is settled as part of the transfer process — the Tax Department must be satisfied and the tax accounted for before or at the transfer of title at the Land Registry, which is why sellers should budget for it as a completion cost, not an afterthought.

Importantly, liability does not depend on residence: a non-resident selling Cyprus property is liable to Cyprus CGT on the gain in the same way as a resident, because the tax attaches to Cyprus-situated immovable property.

Certain family transfers are outside the charge to CGT. Transfers by way of gift between close relatives — for example between spouses, or from parents to children — and some transfers to family companies or trusts, are treated as exempt disposals under defined conditions.

The rules are specific about which relationships and structures qualify, so a transfer intended to be tax-free should be structured on advice. There is also a separate small levy (below) that can still apply to disposals.

Separate from CGT, a levy of 0.4% is charged on the sale value of immovable property (the Equal Distribution of Burdens levy). It is a small additional cost on a disposal and should be factored into a seller’s figures alongside CGT and agent commission.

Because it is calculated on value rather than gain, it applies even where CGT is reduced to nil by exemptions. Confirm the current treatment for your transaction, as levies of this kind can be adjusted.