Cyprus property tax for foreigners: no annual tax, a new 2026 regime for rent, 20% on the gain.
// Short answer
Cyprus has no annual national property tax. It was abolished in 2017. What a foreign owner meets instead: local authority charges, income tax on Cyprus rent, the GHS contribution, and 20% capital gains tax on a sale. The 2026 reform abolished the Special Defence Contribution on rent and required all rent to be paid electronically from 1 July 2026.
Rules and rates as of September 2026. Bills to tighten the rules for non-EU buyers were before the House of Representatives when this was written, so check the dated items again before you sign. Every figure links to its source.
On this page
Is there an annual property tax in Cyprus?
No national one. Immovable Property Tax, the annual national property tax, was abolished from 1 January 2017. Local authorities levy their own property or refuse charges, sewerage fees and water charges, at locally set rates, and certificates showing these are paid are needed when the property is transferred.
The local rates vary by authority and were not found in one official table. Ask the seller for the last bills before you sign.
Sources
How is rental income taxed for a non-resident owner in Cyprus?
Non-residents are taxed in Cyprus on certain Cyprus-source income, which includes rent from Cyprus property. Taxable rent is gross rent less a deemed 20% deduction for repairs and maintenance, with further deductions for capital allowances on the building and loan interest on the purchase.
The 2026 personal income tax bands are 0% up to €22,000, then 20%, 25%, 30%, and 35% above €72,001. Whether a non-resident landlord gets the €22,000 zero band was not settled by an official source when this was written, and commercial guides disagree. Confirm your position with a Cyprus tax adviser before you model the rent.
| Taxable income, from tax year 2026 | Rate |
|---|---|
| Up to €22,000 | 0% |
| €22,001 to €32,000 | 20% |
| €32,001 to €42,000 | 25% |
| €42,001 to €72,000 | 30% |
| Above €72,001 | 35% |
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What changed for Cyprus landlords on 1 January 2026?
The Special Defence Contribution on rental income was abolished from 1 January 2026. From that date rent is subject only to income tax and the GHS (GeSY) health contribution. Before 2026, SDC fell only on people both tax resident and domiciled in Cyprus, so non-residents never paid it.
Two other 2026 changes matter to a landlord. Income tax on rent is paid as provisional tax in two instalments, on 31 July and 31 December. And from 1 July 2026, rent for property in Cyprus may be collected only by bank transfer, card or another recognised electronic method; cash and cheques are not permitted.
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Does a non-resident pay the GHS contribution on Cyprus rent?
Not settled. The GHS (GeSY) contribution is commonly quoted at 2.65% for individuals, on income up to €180,000, but guides disagree on whether a non-resident owes it on Cyprus rent, and no official page settling the point was found as of September 2026.
What is confirmed: where the tenant is a company, it must still withhold the GHS contribution when paying rent. Otherwise the landlord pays GHS by self-assessment on 31 July and 31 December. Ask a Cyprus tax adviser before you assume either way.
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What is capital gains tax on Cyprus property?
20% on the gain from disposing of immovable property in Cyprus, and of shares in companies holding such property. The gain is the sale price less the inflation-adjusted cost and improvements. From 1 January 2026, lifetime exemptions are €150,000 for a main residence and €30,000 for any other disposal, capped at €150,000 overall.
Shares now count as property for this tax if at least 20% of their value (previously 50%) comes from Cyprus immovable property. The full exit, step by step: selling property in Cyprus as a foreigner.
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How are holiday lets taxed in Cyprus?
Registered short-term lets must pay income tax and VAT as applicable, plus overnight-stay charges to the local authority. Since September 2023, income from self-catering property let through online platforms may be treated as business income rather than rent, subject to conditions.
A holiday let must also be registered with the Deputy Ministry of Tourism before it is advertised. The registration rules: Cyprus rental yields and letting rules.
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// Buying in Cyprus?
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See the $499 report, page by pageFrequently Asked Questions
Do foreigners pay annual property tax in Cyprus?
Is rent from Cyprus property taxed if I live abroad?
Is Special Defence Contribution still charged on rent in Cyprus?
Can a tenant in Cyprus pay rent in cash?
What is the capital gains tax rate on Cyprus property?
Header photo: Valantis Antoniades, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.