Do I pay capital gains tax when selling property in Cyprus?
Yes — 20% tax on the gain, but generous lifetime exemptions often reduce it. Capital Gains Tax (CGT) is 20% on gains from disposing of Cyprus immovable property (and shares in companies owning such property). From 1 Jan 2026 the lifetime exemptions were raised: €30,000 general, €150,000 primary residence (conditions apply), €50,000 agricultural land for a professional farmer. Exemptions are lifetime, cumulative and deducted from the gain (not the sale price). The taxable gain = proceeds minus adjusted cost, with inflation indexation. In short: yes, 20%, but often covered by the exemptions.
📋 The rules
- CGT 20% on Cyprus property gains
- From 1 Jan 2026: €30,000 general exemption
- €150,000 primary residence (conditions)
- €50,000 agricultural land (professional farmer)
- Exemptions lifetime & cumulative, indexed
🔓 Exceptions
- Transfers to spouse/children/third-degree relatives: exempt
- Shares on a recognised stock exchange: outside CGT
- Property bought 16 Jul 2015–31 Dec 2016: exempt on future sale
⚠️ Penalties & fines
CGT is declared to the Tax Department; title transfer at the Land Registry is typically blocked until it's settled. The rate is 20% and the 2026 exemptions are €30,000/€150,000/€50,000. Separately, a 0.4% levy on the sale consideration is payable by the seller. Beware a myth: "selling my main home is always tax-free" is not automatic — you must meet the primary-residence conditions and have remaining lifetime exemption; only gains up to €150,000 (from 2026) are sheltered, with 20% on any excess. Tip: keep receipts for improvements and costs — they reduce the gain.
📎 Official sources
❓ Frequently asked
Do I pay tax when selling property?
Yes, capital gains tax of 20% on the gain from disposing of Cyprus immovable property. However, lifetime exemptions can reduce or eliminate the tax, depending on the type of property and your remaining exemption balance.
How big are the 2026 exemptions?
From 1 January 2026, the lifetime exemptions rose to €30,000 general, €150,000 for the primary residence with conditions, and €50,000 for a professional farmer's agricultural land. They replace the old €17,086, €85,430 and €25,629 figures.
How is the gain calculated?
The taxable gain is the sale proceeds minus the adjusted acquisition cost, with indexation for inflation based on the Cyprus price index. Deductible costs are also subtracted, such as transfer fees, legal fees, loan interest and improvements.
Are there exemptions for gifts?
Yes. Transfers between spouses, to children and to third-degree relatives are exempt from capital gains tax. Gains on shares listed on a recognised stock exchange are also excluded.
Is the main home always tax-free?
Not automatically. You must meet the primary-residence conditions and have remaining lifetime exemption. From 2026, gains up to €150,000 are sheltered, and 20% applies to any excess.
🔎 Common searches
What people search to land here:
- “capital gains tax cyprus”
- “cgt property 20 cyprus”
- “primary residence exemption cyprus”
- “selling property tax cyprus”
- “exemption 150000 cyprus”
- “property gain tax 2026 cyprus”