12/01/2026
SELLING PROPERTY IN CYPRUS IN 2026? FAVOURABLE TAX REFORMS ARE NOW IN EFFECT.
Recent legislative reform has amended the Capital Gains Tax Law of Cyprus, modernising the method by which gains on immovable property and certain transferable assets are calculated and taxed, while aligning the framework with EU standards.
Although Capital Gains Tax (CGT) remains at 20%, reforms effective from 1 January 2026 significantly enhance exemptions available to property owners.
Key changes from 2026 include:
• Increase of the general lifetime CGT exemption from €17,086 to €30,000
• Increase of the main residence exemption from €85,430 to €150,000, subject to a 5-year occupation requirement
• Continued deductibility of documented improvement costs, legal fees, transfer fees and estate agent commissions
• Retention of the full CGT exemption for properties acquired between 16 July 2015 and 31 December 2016
With proper planning and robust documentation, CGT exposure can be significantly reduced — and in some cases eliminated.
Esme Palas
Partner | Barrister at Law