Industry
Accountants for Real Estate & Property Investors in Cyprus
Tsquared helps Cyprus property owners, landlords and estate agencies handle rental income tax, capital gains tax, VAT on property and bookkeeping so every transaction is compliant and tax-efficient.
Challenges you face - solutions we provide
The problems landlords, estate agents and property investors bring to us, and exactly how we solve them.
Guides for Real Estate & Property Investors
Rental income tax in Cyprus
Rental income in Cyprus is taxed under personal income tax after a 20% deduction for wear and tear, and from 2026 Special Defence Contribution on rental income has been abolished.
Capital gains tax on Cyprus property
Cyprus charges 20% capital gains tax on gains from disposing of Cyprus real estate, with lifetime exemptions for individuals and inflation indexation on the original cost.
VAT on property purchases
New residential property in Cyprus attracts 19% VAT, with a reduced 5% rate available on qualifying primary residences subject to size and value limits.
Short-let and Airbnb tax
Short-let income in Cyprus must be declared as rental or business income, and owners must register with the Deputy Ministry of Tourism and may need to charge VAT once turnover passes the threshold.
Transfer fees and stamp duty
Cyprus land registry transfer fees range from 3% to 8% on the purchase price, are halved where no VAT was paid, and stamp duty of up to 0.2% applies to the sale contract.
Buying property through a company
Holding Cyprus property through a company can reduce tax on rental profits to the 15% corporate rate (from 2026), but adds deemed-distribution, audit and administration costs that must be weighed up.
Accounting for estate agencies
Estate agencies in Cyprus need monthly bookkeeping, VAT on commissions, client-money separation and audited annual accounts to keep their licence and stay compliant.
Structuring a property portfolio
Investors with several Cyprus properties can lower tax by choosing the right mix of personal ownership, companies and family holding structures, planned before purchase rather than after.
Non-resident landlords
Non-resident owners of Cyprus property must still declare and pay Cyprus tax on local rental income, and can usually claim credit in their home country under a double tax treaty.
Annual property-related taxes
Cyprus abolished annual immovable property tax in 2017, but owners still pay municipal and sewerage fees and must keep title deeds and records in order.
Deductible rental expenses
Landlords can deduct loan interest, the 20% notional allowance and, through a company, actual repair, management and depreciation costs from Cyprus rental income.
Selling inherited property
Inherited Cyprus property is valued at the date of death for capital gains purposes, so heirs often pay little or no CGT if they sell soon after inheriting.
Tax residency through property
Buying a Cyprus home supports, but does not by itself create, Cyprus tax residency; you must meet the 183-day or 60-day rule to become resident.
Bookkeeping for landlords
Simple monthly bookkeeping for each property - rent received, costs paid and deposits held - makes your Cyprus tax return quick and protects you in any Tax Department review.
Talk to a Cyprus accountant this week
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