Capital gains tax
A 20% tax on the gain from selling property in Cyprus, paid by the seller. From 1 January 2026, lifetime exemptions are €30,000 in general and €150,000 for a main residence.
Updated 12 Oct 2026How it works
Capital gains tax (CGT) is charged at 20% on the gain from disposing of immovable property in Cyprus, and on selling shares in companies that own such property, as the Tax Department sets out. From 1 January 2026, shares are caught where at least 20% of the company's value comes from Cyprus property, down from 50%.
The gain is the sale price minus the purchase cost and the cost of improvements, adjusted for inflation. For property acquired before 1 January 1980, its market value on that date replaces the cost. Expenses linked to the purchase and sale, such as transfer fees, legal fees and interest on a loan taken for the purchase, can be deducted under conditions. Agency commission counts only if it was paid to a licensed agent.
Lifetime exemptions for individuals:
| Exemption | Until 2025 | From 1 January 2026 |
|---|---|---|
| Main residence you lived in for at least five years | €85,430 | €150,000 |
| Agricultural land sold by a farmer | €25,629 | €50,000 |
| Any other disposal | €17,086 | €30,000 |
These are lifetime amounts, not per sale: what you used on earlier disposals reduces what is left. Companies get no exemption. Property bought from an unrelated seller between 16 July 2015 and 31 December 2016 is outside CGT when it is sold.
The tax is due within 30 days of the disposal. The Land Registry registers the transfer only when the seller produces a tax clearance certificate (Form N313).
Why it matters when you sell
On a €200,000 gain from selling your main residence, €50,000 is taxable under the 2026 rules and the tax is €10,000; with the old €85,430 exemption it was €22,914. Keep the purchase contract, invoices for improvements and receipts for fees from the day you buy: they reduce the taxable gain. The result depends on your situation, so check it with a tax adviser.