This guide is written for landlords, estate agents and property investors. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with rental income tax and special defence contribution, capital gains tax on disposals, vat on new builds vs. resales.
Key points
- 20% notional expense deduction
- Interest on loans used to buy the property is deductible
- No SDC on rent from 2026
- Declare on your annual TD1 return
Challenges you face, solutions we provide
Challenge: Rental income tax and Special Defence Contribution
Our solution: Rental accounts prepared and annual TD1 returns filed with every allowance claimed
Challenge: Capital gains tax on disposals
Our solution: CGT computations with inflation indexation and lifetime exemptions applied before you sell
Challenge: VAT on new builds vs. resales
Our solution: Correct VAT treatment confirmed before completion, including the 5% reduced rate
Challenge: Short-let (Airbnb) reporting
Our solution: Tourism registration, platform income tracking and VAT thresholds monitored for you
Challenge: Agency commission accounting
Our solution: Clean commission bookkeeping with client-money reconciliations and VAT returns
Frequently asked questions
- Rental income tax in Cyprus: what's the short answer?
- 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.
- Can Tsquared help with rental income tax in cyprus?
- Yes. We advise landlords, estate agents and property investors in Cyprus on rental income tax in cyprus and handle the filings for you.