𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗮 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗶𝗻 𝗖𝘆𝗽𝗿𝘂𝘀?
𝗧𝗵𝗲 𝗲𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝗷𝘂𝘀𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝗱 — 𝗵𝗮𝘀 𝘆𝗼𝘂𝗿 𝘁𝗮𝘅 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗰𝗮𝘂𝗴𝗵𝘁 𝘂𝗽?
Selling a property in Cyprus — or buying one as part of a broader relocation — brings Capital Gains Tax (CGT) into the picture sooner than most people expect. Following the tax reform that took effect on 1 January 2026, several of the exemptions that determine how much tax a seller pays have changed significantly. Whether you’re a long-term resident selling a family home or an entrepreneur relocating to Cyprus and structuring a property purchase, understanding these changes now avoids costly surprises later.
What Is Capital Gains Tax in Cyprus?
CGT is charged on the profit made from disposing of immovable property physically located in Cyprus. It also applies to the sale of shares in unlisted companies where at least 20% of the company’s value derives, directly or indirectly, from Cyprus property — a threshold the 2026 reform lowered from 50%, bringing more corporate property transactions into scope.
Importantly, CGT is not calculated on the full sale price. It applies only to the difference between the sale proceeds and the original acquisition cost, adjusted for inflation, plus allowable expenses such as documented improvements, legal fees, and transfer costs.
The tax applies regardless of tax residence. Non-residents and non-domiciled tax residents alike remain liable for CGT on Cyprus property — the non-dom regime’s exemptions cover dividends, interest, and (since 2026) rental income, but not gains from Cyprus real estate.
| Capital Gains Tax (CGT) rate | Flat 20% on the net gain — unchanged by the 2026 reform |
| Applies to | Cyprus-situated immovable property, and unlisted shares deriving 20%+ of value from Cyprus property (lowered from 50%) |
| Who pays | Both residents and non-residents — including non-dom tax residents |
| General lifetime exemption | €30,000 per individual (up from €17,086) |
| Primary residence exemption | €150,000, if occupied as main home for 5+ years (up from €85,430) |
| Effective from | 1 January 2026 |
What Changed in 2026
The reform package, approved by the House of Representatives in December 2025 and in force since 1 January 2026, raised two of the lifetime exemptions available to individual sellers:
| – The general lifetime exemption — available on any property disposal — rose from approximately €17,086 to €30,000. – The exemption for the sale of a primary residence occupied for at least five years nearly doubled, from roughly €85,430 to €150,000. – The property-value threshold that brings unlisted company shares into CGT scope was tightened from 50% to 20% of Cyprus real estate exposure. |
These exemptions are lifetime allowances, not annual ones. They are generally alternative rather than cumulative — a seller claims whichever single exemption applies to that transaction, up to an aggregate lifetime cap. Eligibility depends on individual circumstances, including how long a property was held and occupied, so it’s worth confirming your position before agreeing a sale price.
Why This Matters If You’re Relocating to Cyprus
Property is rarely incidental to a relocation. Those moving to Cyprus under the non-dom regime often buy a home to satisfy residency requirements, sell property abroad to fund the move, or hold real estate through a corporate structure as part of wider tax planning.
Most of the planning effort goes into residency status, non-dom qualification, and company structuring — the steps that happen before and during incorporation, as covered in our guide, Relocating Your Business to Cyprus in 2026. CGT exposure on Cyprus property is often the piece that gets reviewed only once a transaction is already underway, which is precisely when the exemption calculations and indexation adjustments are hardest to get right retroactively.
If your relocation plan includes buying, selling, or holding Cyprus property — personally or through a company — it belongs in the same conversation as your VAT registration, payroll setup, and provisional tax estimate, not a separate one.
Frequently Asked Questions
Does non-dom status reduce Capital Gains Tax on property in Cyprus?
No. Non-dom status exempts qualifying residents from Special Defence Contribution on dividends, interest, and rental income — it does not extend to CGT on Cyprus real estate, which remains taxable at 20% regardless of domicile status.
Is foreign property subject to Cyprus Capital Gains Tax?
No. Cyprus CGT applies only to property physically situated in Cyprus, and to unlisted shares deriving their value from such property. Gains on foreign real estate, and on shares, bonds, or other securities generally, fall outside its scope for Cyprus tax residents.
Can I use more than one lifetime exemption on the same sale?
Generally, no — exemptions are typically alternative rather than cumulative for a single transaction, and are subject to an aggregate lifetime cap across all disposals. Confirming which exemption applies, and whether you’ve used any of it previously, should be done before a sale completes.
How FCI SERVICES Supports You
At FCI SERVICES, we help property sellers and relocating clients calculate CGT exposure accurately, confirm which lifetime exemption applies, and factor property transactions into the wider tax and accounting picture — alongside VAT, payroll, and provisional tax obligations.
| Our Services include: – CGT calculation, including inflation indexation and allowable expenses – Lifetime exemption eligibility review – Coordination with legal and notary advisors during a sale – Integration of property tax planning into your broader Cyprus relocation or company structure – Administration of property sale and purchase transactions |
| Selling or buying property in Cyprus this year? Contact FCI Services for a Capital Gains Tax review before you commit to a transaction. |
Read also:
Tel: +357 22873710 📧 info@fciservices.com.cy 🌐 https://www.fciservices.com.cy
| Scale Smarter. Live Better. Choose Cyprus. |
Disclaimer: FCI Services Ltd prepared this article for informational purposes only. It does not constitute legal, tax, or financial advice. Tax laws are subject to change and individual circumstances vary. Please consult a qualified professional before making any decisions based on this material. © FCI Services Ltd 2026. All rights reserved.
