What is the capital gains tax in Cyprus?
Capital Gains Tax (CGT) is a tax on the profit you make when you sell an asset for more than you paid for it. You do not pay tax on the full selling price, but only on the net profit: selling price minus purchase price, minus deductible expenses.
In Cyprus, CGT applies exclusively to profits from the sale of real estate located in Cyprus, or shares in companies of which at least 20% of the value is derived from Cypriot real estate. The rate is 20%. A 0% CGT applies to the sale of ordinary shares and securities, regardless of profit or holding period.
Capital Gains Tax Cyprus: Calculator
Interactive calculator for capital gains tax (CGT) in Cyprus 2026
Type of capital gain
Transaction data
Result 2026
Gross capital gain
€ 0
Available exemption
€ 0
CGT due
€ 0
| Selling price | € 0 |
| Less: adjusted purchase price | – € 0 |
| Less: deductible expenses | – € 0 |
| Gross capital gain | € 0 |
| From: lifelong exemption (2026) | – € 0 |
| Taxable capital gain | € 0 |
| CBT @ 20% | € 0 |
| Net proceeds after CBT | € 0 |
Overview: what is taxable and what is not?
| Asset | CBT rate | Note |
|---|---|---|
| Real estate in Cyprus | 20% | After deduction of costs and exemptions |
| Shares in real estate company ≥20% | 20% | Threshold lowered from 50% to 20% in 2026 |
| Shares / securities (listed on the stock exchange) | 0% | Fully exempt |
| Shares / securities (non-listed) | 0% | Fully exempt |
| Foreign real estate | 0% | Outside scope of Cyprus CGT |
| Crypto assets | 8% (flat) | Article 20E, not CBT but ITL |
| Bonds / investment funds | 0% | Securities, fully exempt |
How do you calculate capital gains tax on real estate?
The CGT is calculated on the net capital gain, not on the selling price. This works as follows:
Step 1: Gross capital gain
Selling price minus the adjusted purchase price (adjusted for inflation) minus deductible costs.
Step 2: Deductible expenses
Other costs related to the acquisition and disposal of real estate are also deductible, under certain conditions, such as interest costs on related loans, transfer costs, and legal costs.
Step 3: Inflation factor
The purchase price is adjusted for inflation based on the Consumer Price Index of the Cypriot Statistics Office. If you bought a property in 1990 for €100,000, the adjusted purchase price in 2026 could exceed €200,000, which significantly reduces your taxable profit.
Step 4: Lifelong exemption
From this, subtract the available lifetime exemption (see below).
Step 5: 20% CBT on the remainder
Lifetime exemptions 2026: substantially increased
This is the biggest change in the 2026 tax reform for property owners. The lifetime exemptions under the CGT regime have been materially increased to reflect the significant appreciation in real estate values over the past decades.
| Category | Before 2026 | From 2026 |
|---|---|---|
| General exemption | €17.086 | €30.000 |
| Agricultural land (professional farmer) | €25.629 | €50.000 |
| Primary residence | €85.430 | €150.000 |
Important: these exemptions are lifelong and cumulative.
The exemptions are not available per transaction but are applied cumulatively over the lifetime of the taxpayer. If you have already fully utilized the general exemption of €30,000 in a previous transaction, no exemption is available for a future sale.
Practical tip: if you sell two properties and have already used the €30,000 exemption the first time, you will have no remaining general exemption for the second sale, unless you can use the principal residence exemption.
The 0% rule on stocks: why it is so powerful
This exemption makes Cyprus a preferred jurisdiction for professional traders, asset managers, and private investors who wish to legally minimize their tax burden.
What exactly falls under the “securities” exemption:
- Ordinary shares in any company (Cypriot or foreign)
- Preferred shares and founders' shares
- Bonds and debt securities
- Depositary Receipts
- Participations in investment funds (UCITS, ICIS)
- Warrants and options on securities
What is excluded:
- Shares in companies where ≥20% of the market value is derived from Cypriot real estate do fall under the 20% CGT
The 20% threshold is the critical change of 2026. The threshold for classifying real estate-rich companies has been lowered from at least 50% to at least 20%. This increases the likelihood that share sales in real estate holding structures fall within the CGT net.
If you own a Cyprus Ltd that also holds real estate: check whether the real estate value accounts for more than 20% of the total company value. If so, the sale of shares is taxed as a sale of real estate.
CBT for non-residents
Non-residents are also subject to CGT on profits from Cypriot real estate or shares in real estate-rich Cypriot companies. The exemptions also apply to non-residents.
Profits from the sale of shares and foreign real estate are exempt. If you sell a property in Cyprus, CGT is levied on the taxable profit. If you use the profit from the sale of one property to buy another, you do not pay tax on the sale of the first property.
The rollover exemption upon reinvestment in another Cypriot property is an underestimated benefit for active real estate investors.
Real estate in a company vs. private: CGT comparison
| Scenario | Private | Via Cyprus Ltd |
|---|---|---|
| CBT rate | 20% of net profit | 20% CGT on direct real estate sales |
| Lifelong exemptions | Yes (€30k / €150k / €50k) | No (only for individuals) |
| Share sale company | not applicable. | 0% if <20% of property value |
| Dividend distribution after sale | 0% (Non-Dom) | 0% (Non-Domain shareholder) |
The holding strategy: contributing real estate to a Cyprus Ltd, subsequently selling shares instead of the real estate itself. This only works if less than 20% of the company value consists of Cypriot real estate, which has become more difficult due to the 2026 lowering of the threshold.
The 0.4% property tax
In addition to the 20% CGT, a separate levy applies: effective 22 February 2021, a levy of 0.4% is imposed on the sales proceeds of all disposals of real estate currently under the control of the Republic of Cyprus. This includes both commercial and capital transactions. The payment obligation rests with the seller.
This is a small levy on top of the CGT that many calculators do not include. On a property of €500,000, that is an extra €2,000.
FAQ
What is the capital gains tax in Cyprus? The capital gains tax in Cyprus is 20% on profits from the sale of Cypriot real estate or shares in real estate-rich companies (≥20% real estate value). On ordinary shares and securities, this is 0%.
Do I pay capital gains tax if I sell shares in Cyprus? No, unless those shares are held in a company where ≥20% of the value is derived from Cypriot real estate. A 0% capital gains tax applies to ordinary shares (both listed and unlisted).
What is the exemption for my primary residence? A €150,000 lifetime exemption on the net capital gain upon the sale of your primary residence (increased from €85,430 in 2026). This exemption is cumulative over your entire life.
Do I pay capital gains tax if I sell my foreign property while living in Cyprus? No. Cyprus CGT applies exclusively to real estate located in Cyprus. Foreign real estate falls outside the CGT regime.
Is there a maximum holding period for the 0% on shares? No. There is no minimum or maximum holding period. You can sell shares one day after purchase and still pay 0% CGT.
Is crypto subject to CGT in Cyprus? No, crypto does not fall under the CGT law but under the new Article 20E of the Income Tax Law: an 8% flat tax on realized profits or 0% for “hodlers”.
