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Tax Benefits in Cyprus

Attractive Conditions for Property & Investment.

Cyprus combines Mediterranean quality of life with a modern European tax and business environment. For buyers, entrepreneurs and new residents, attractive tax opportunities may arise depending on the individual situation.

Updated: 2026 · individual requirements and transitional rules apply
Cyprus 2026

Clearer.
More modern.
International.

A comprehensive tax reform came into force in Cyprus on 1 January 2026. Among other things, it revised corporate taxation, the taxation of certain types of income, and various rules for individuals and companies.

For international buyers in particular, it is important not to look at individual tax rates in isolation. Tax residency, non-domicile status, type of income, use of the property and personal circumstances should be considered together.

Important: The corporate tax rate of 12.5% that was often promoted in the past no longer applies from 2026. The standard corporate tax rate is now 15%.
Selected Benefits

What Makes Cyprus Attractive from a Tax Perspective

15%

Corporate Tax

Since 1 January 2026, the standard corporate tax rate in Cyprus has been 15%. Cyprus therefore remains an internationally oriented business location within the EU.

Non-Dom

Special Rules

Qualifying Cyprus tax residents with non-domicile status may be exempt from the Cypriot Special Defence Contribution on dividends and interest income.

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No Annual Property Tax

Cyprus no longer levies a nationwide annual Immovable Property Tax merely for owning a property. Municipal charges may still apply.

EU

European Legal Framework

Cyprus is an EU member state, so taxation, property ownership and investment operate within a European legal and regulatory framework.

Non-Domicile Especially relevant for international newcomers — but always dependent on tax residency and personal circumstances.
For New Residents

Non-Dom Status at a Glance

The Cypriot non-domicile regime may be attractive for people who move their tax residence to Cyprus and meet the statutory requirements.

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Qualifying non-doms are generally exempt from the Special Defence Contribution on dividends.
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Certain interest income may also be exempt from this contribution for qualifying non-doms.
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Cyprus tax residency may, depending on the circumstances, be established under either the 183-day or the 60-day rule.
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The status is subject to statutory requirements and time limits and must be assessed individually.
Property & Taxes

The Purchase Price Is Not the Only Factor.

Depending on the property and its use, different tax issues may be relevant when purchasing real estate. Each transaction should therefore be reviewed individually.

01

Capital Gains & Sale

Gains from the sale of Cypriot real estate may be subject to Capital Gains Tax. Adjusted allowances and rules also apply from 2026.

02

VAT & Transfer

Whether VAT, reduced VAT rules or transfer fees apply depends, among other things, on the property, its first use and the specific transaction.

03

Rental Income

Since 2026, rental income is no longer additionally subject to the Special Defence Contribution. Income tax or corporate tax may still be relevant.

Make Informed Decisions

Understand First.
Then Invest.

Buying property abroad is a long-term decision. That is why we look not only at location, project and purchase price, but also at the questions buyers face throughout the acquisition process.

For detailed tax or legal questions, we recommend an individual review by qualified tax advisers and lawyers in Cyprus.

No Blanket Promises. Tax benefits always depend on the individual situation. Professional advice provides clarity before a binding decision is made.

Note: The content of this page is for general information only and does not constitute tax, legal or investment advice. Tax rules may change and depend on the buyer’s individual circumstances. Information current as of July 2026.

Property in Cyprus

The Right Property Starts with the Right Information.

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