Selling property in Cyprus? It’s essential to understand the taxes and costs involved, especially Capital Gains Tax (CGT). We work with sellers through this process every day at Life Realty, and we’re committed to keeping our clients informed about real estate tax matters so they can make the right financial decisions.
Our expert team regularly attends seminars and stays up to date with Cyprus property tax laws, ensuring high-quality service and guidance throughout every stage of your transaction.
Wondering how to sell property in Cyprus from start to finish? Our complete guide covers the whole process, costs and timeline.
What is Capital Gains Tax in Cyprus?
Capital Gains Tax (CGT) is a tax imposed on the net profit gained from the sale of immovable property in Cyprus, or shares in private companies that own property in Cyprus, as long as the shares are not listed on a recognised stock exchange.
- Current CGT rate: 20% on the taxable gain
This tax applies to property owners, investors, and companies involved in real estate transactions. Since the 2026 tax reform, it also applies more broadly to company share disposals: the qualifying threshold dropped from 50% to 20% of a company’s value being derived from Cyprus property, so more share sales now fall within scope than before.
How is Capital Gains Tax Calculated?
To calculate your taxable capital gain, we start from three components:
- Selling Price, the actual amount received from the property sale
- Original Purchase Price (Adjusted for Inflation), indexed using the Cyprus Consumer Price Index
- Allowable Expenses, including property improvement costs, legal and selling fees, and other eligible costs
Here’s how that plays out in practice for a seller today. Our transfer fees and tax calculator can run the same numbers against your own figures.
| Step | Example figure |
|---|---|
| Selling price (2026) | €450,000 |
| Indexed purchase price (bought 2000 for €250,000) | €250,000 + CPI indexation |
| Allowable expenses (legal, selling, improvement costs) | Deducted from gain |
| Taxable gain before exemptions | Selling price − indexed price − expenses |
| Applicable exemption (whichever is higher, not both) | Up to €150,000 if primary residence; €30,000 otherwise |
| CGT payable | 20% of the remaining taxable gain |
Key CGT Exemptions and Reliefs (2026)
This is the section we get asked about most, and it’s also where we most often see sellers working from an outdated figure. Cyprus’s lifetime CGT exemptions increased materially from 1 January 2026:
| Exemption | Pre-2026 | From 1 January 2026 | Conditions |
|---|---|---|---|
| General (any property) | €17,086 | €30,000 | Available to any individual seller; no occupancy requirement |
| Primary residence | €85,430 | €150,000 | Must have occupied the property continuously for at least 5 years |
| Agricultural land | €25,629 | €50,000 | Seller must be a professional farmer disposing of qualifying land |
These exemptions are alternative, not cumulative, for a single sale. We regularly see sellers assume they can stack the general exemption on top of the primary residence one; in practice, only the higher of the two applies to any given gain. The total you can claim across all categories over your lifetime is capped at €150,000.
Tip: If you don’t meet the 5-year occupancy requirement for the primary residence exemption, you likely still qualify for the general €30,000 exemption. Don’t assume you have no exemption available just because your sale doesn’t fit the primary residence category.
Other exemptions and reliefs also apply under specific conditions:
- Inheritance Transfers: property inherited is not subject to CGT at the point of inheritance
- Corporate Restructuring: transfers under company reorganisations may be exempt
A separate relief measure under Law 50(I)/2025 extended tax relief for property transfers connected to loan restructuring through 31 December 2025. That window has since closed, so if your sale isn’t connected to a loan restructuring completed before that date, this relief no longer applies to your transaction.
Try Our Free Capital Gains Tax Calculator
We’ve built a free online calculator to help you estimate your Capital Gains Tax and property transfer fees in Cyprus. Whether you’re a local seller or a foreign investor, it’s a practical tool to help plan your property transaction. Try the Life Realty Tax Calculator.
Trends in CGT Revenue and Real Estate Activity
In 2024, the government collected €174.2 million in CGT, down from €203 million in 2023. This decrease may indicate a slower real estate market or increased use of legal CGT exemptions.
Final Advice
We always recommend speaking with a certified tax advisor before finalising any real estate sale in Cyprus. Every case is different, and proper planning, especially around which exemption applies to you, can make a major financial difference.
If you’re planning a purchase alongside your sale, our guide to legal pitfalls to avoid when buying property in Cyprus covers the other side of the transaction.
For more guidance, contact Life Realty, your trusted Cyprus real estate partner.
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Frequently Asked Questions
Source: Cyprus Tax Department. Exemption figures confirmed against the 2026 Cyprus tax reform, effective 1 January 2026.
Life Realty is a licensed real estate agency (Licence No. 603/E) founded by Demos Georgiou, a Chartered Surveyor and RICS member, with offices in Limassol and Paphos. Marios Eleftheriou, our General Manager, holds a BSc in Mathematics, an MBA and an LLB, with close to 14 years in real estate and investment advisory.
liferealty.cy·Last reviewed: August 2026