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
- Mortgage interest deductible
- Capital allowances on furniture via companies
- Management fees
- Insurance and repairs
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
- Deductible rental expenses: what's the short answer?
- Landlords can deduct loan interest, the 20% notional allowance and, through a company, actual repair, management and depreciation costs from Cyprus rental income.
- Can Tsquared help with deductible rental expenses?
- Yes. We advise landlords, estate agents and property investors in Cyprus on deductible rental expenses and handle the filings for you.