Property Taxes in Cyprus: The Full Lifecycle — Buying, Owning, Renting, Selling
Updated for 2026 — last updated: 19 July 2026
Cyprus property taxation changed more in the last three years than in the previous twenty: stamp duty is abolished, immovable property tax is long gone, the 5% VAT rules were rewritten, SDC on rents disappeared, and the capital-gains exemptions were reset by the 2026 reform. This guide maps the taxes across the property lifecycle — what you pay when you buy, while you own, if you rent out, and when you sell — with the current figures, not the ones most guides still carry.
Table of Contents
When You Buy: VAT or Transfer Fees — Not Stamp Duty
Start with what is gone: stamp duty on documents was abolished from 1 January 2026 — sale contracts no longer bear it (pre-2026 contracts fell under the old bands). What remains is an either/or: new properties bear VAT — 19% standard, with the reduced 5% rate available for a primary residence within the statutory size and value limits and transitional deadlines (see our 5% VAT guide) — and VAT-bearing purchases pay no transfer fees. Resale properties bear no VAT but pay Land Registry transfer fees on transfer of title, at the banded rates with the standing 50% reduction — bands, examples and the calculator are in our transfer fees guide.
While You Own: The Recurring Charges
The recurring burden is light by European standards. National immovable property tax was abolished back in 2017 and has not returned. What owners actually pay: local authority charges (refuse, sewerage and municipal fees, modest annual amounts set locally), communal-area charges in developments, and insurance. There is no annual wealth-style property tax, which — combined with the absence of inheritance tax — is a standing reason Cyprus property features in estate planning; see our inheritance and estate planning guide.
If You Rent It Out: The 2026 Rules
Rental taxation was simplified by the reform. SDC on rental income is abolished — the old parallel charge is gone. Individual landlords pay income tax on rental profits at the progressive scale (0% up to €22,000; 35% above €72,000) plus GHS contributions; companies pay 15% corporate tax. Two compliance points now matter as much as the rates: rents must be paid electronically — the rule in force since 1 July 2026 covers all tenancies, superseding the earlier €500 threshold — so cash rent arrangements are a compliance breach, not a convenience; and short-term lets require registration with the self-catering register before listing. The full picture, including structures and yields, is in our rental property investment guide.
When You Sell: Capital Gains Tax
Gains on disposals of Cyprus immovable property (and shares in companies substantially holding it) bear capital gains tax at 20%, computed on the gain with indexation and allowable costs. The lifetime exemptions were reset by the 2026 reform: €150,000 for a disposal of the seller's main residence (conditions apply), €50,000 for agricultural land disposals by qualifying farmers, and €30,000 for any other disposal — lifetime figures, used once across a seller's disposals, not per transaction. Older articles quoting €85,430/€25,629/€17,086 — or an aggregate "€127,516 combined" cap — describe the superseded regime.
Seller Compliance: Tax Clearance Before Transfer
Sellers discover this stage late and at the worst moment: the Land Registry will not complete a transfer without the Tax Department's clearance certificate confirming the seller's taxes — CGT on the disposal, and any outstanding liabilities connected to the property — are settled. Building the clearance into the completion timetable, with the CGT computation agreed in advance, prevents the classic two-month completion delay. Buyers' lawyers, for their part, should hold the price mechanics (retentions where needed) until clearance is confirmed.
The Lifecycle at a Glance
| Stage | Tax | 2026 position |
|---|---|---|
| Buy (new) | VAT | 19%, or 5% for a qualifying primary residence; no transfer fees |
| Buy (resale) | Transfer fees | Banded rates with 50% reduction; no VAT |
| Buy (any) | Stamp duty | Abolished from 1 January 2026 |
| Own | Recurring | No national property tax; local charges only |
| Rent out | Income tax / CIT + GHS | Scale (0–35%) or 15%; SDC on rents abolished; electronic payment mandatory |
| Sell | CGT | 20% with lifetime exemptions €150k / €50k / €30k |
Frequently Asked Questions
Is there an annual property tax in Cyprus?
No national annual property tax — it was abolished in 2017. Owners pay only modest local authority and communal charges.
What tax do I pay when selling property in Cyprus?
Capital gains tax at 20% on the gain, after indexation and costs, less the applicable lifetime exemption — €150,000 for a qualifying main residence, €50,000 for qualifying agricultural land, €30,000 otherwise. A tax clearance certificate is required before the Land Registry completes the transfer.
Do landlords still pay SDC on rent in Cyprus?
No — SDC on rental income was abolished under the 2026 reform. Rental profits bear income tax on the progressive scale (or 15% corporate tax) plus GHS, and all rents must now be paid electronically.
Speak to Connor Legal
Connor Legal advises buyers, owners, landlords and sellers on Cyprus property taxation — from structuring a purchase to CGT computations and clearance at exit. For numbers that reflect the law as it stands, contact the firm.
