SELLING PROPERTY IN CYPRUS IN 2026?
Favourable Tax Reforms Are Now in Effect
Recent legislative reforms have modernised Cyprus’ Capital Gains Tax (CGT) framework, updating how gains on immovable property and certain transferable assets are calculated and taxed. These changes align Cyprus more closely with EU standards while offering significantly improved exemptions for property owners.
Although CGT remains at 20%, reforms effective from 1 January 2026 substantially enhance the tax relief available when selling property.
Key CGT Changes from 2026
✔ Increase in general lifetime CGT exemption
From €17,086 to €30,000
✔ Increase in main residence exemption
From €85,430 to €150,000, subject to a 5-year continuous occupation requirement
✔ Continued deductibility of qualifying costs, including:
- Documented property improvement expenses
- Legal fees
- Transfer fees
- Estate agent commissions
✔ Full CGT exemption retained
For properties acquired between 16 July 2015 and 31 December 2016
What This Means for Property Owners
With careful planning and accurate documentation, Capital Gains Tax exposure can be significantly reduced — and in some cases eliminated entirely. These reforms make 2026 an especially favourable time for eligible property owners considering a sale.