Selling property in Cyprus? It’s essential to understand the taxes and costs involved—especially Capital Gains Tax (CGT). At LifeRealty, we are 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.
What is Capital Gains Tax in Cyprus?
Capital Gains Tax (CGT) is a tax imposed on the net profits 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 recognized stock exchange).
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Current CGT Rate: 20% on the taxable gain
This tax applies to property owners, investors, and companies involved in real estate transactions.
How is Capital Gains Tax Calculated?
To calculate your taxable capital gain, the following components are considered:
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Selling Price – The actual amount received from the property sale.
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Original Purchase Price (Adjusted for Inflation) – The original value of the property, indexed using the Cyprus Consumer Price Index.
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Allowable Expenses – These include property improvement costs, legal and selling fees, and other eligible expenses.
Example:
If you bought a property in 2000 for €250,000 and sell it in 2024 for €450,000, your gain will be calculated after adjusting for inflation and deducting any allowable costs.
Key CGT Exemptions and Reliefs
Certain transactions are exempt from Capital Gains Tax under specific conditions:
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Sale of a Primary Residence: Exemption of up to €85,430 if the seller meets residence and ownership conditions
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Inheritance Transfers: Property inherited is not subject to CGT
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Corporate Restructuring: Transfers under company reorganizations may be exempt
Recent legislation (Law 50(I)/2025) has extended tax relief measures, especially for property transfers related to loan restructuring, until 31 December 2025.
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.
Try Our Free Capital Gains Tax Calculator
At LifeRealty, we’ve developed 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 LifeRealty Tax Calculator
Final Advice
We always recommend speaking with a certified tax advisor before finalizing any real estate sale in Cyprus. Every case is different, and proper planning can make a major financial difference.
For more guidance, contact LifeRealty—your trusted Cyprus real estate partner.