Cyprus · Methodology · 2025-2026 rates
Cyprus for Foreign Property Buyers: The 2026 Tax Architecture That Drives Demand
Cyprus property prices are higher than mainland Greece's, and the gap is not explained by Mediterranean coastline or weather — both countries have those. The gap is explained by tax architecture. Cyprus has structured itself, deliberately, as the lowest-friction EU residency option for non-EU wealth. Most “Cyprus property guide” pages stop at the headline transfer fee and miss this entirely — and most of them also haven't yet absorbed the 1 January 2026 reform package that abolished stamp duty on property contracts, restructured Special Defence Contribution rates, raised CGT exemptions, and reset the income-tax brackets.
This page lists what a foreign property buyer in Cyprus actually pays — and, more importantly, what they don't pay — across acquisition, holding, and disposal. The numbers explain the price premium and the demand it generates.
The short version
For a €600,000 Limassol apartment held five years and rented out by a non-dom Cyprus tax resident:
| Cost item | Year 1 | Annual recurring | 5-year total |
|---|---|---|---|
| Transfer fees (graduated) | €20,600 | — | €20,600 |
| Stamp duty (abolished Jan 2026) | €0 | — | €0 |
| Notary + legal fees | ~€8,000 | — | €8,000 |
| Immovable Property Tax | €0 | €0 | €0 |
| Income tax on rental (after personal allowance) | ~€1,500 | ~€1,500 | €7,500 |
| Capital gains tax on sale | — | — | €0 typically (indexation + €30K exemption) |
| All-in cost | ~€30,100 | ~€1,500 | ~€36,100 |
That €36,100 is approximately 6.0% of the purchase price over five years — meaningfully lower than the equivalent Greek calculation at 8.7%, almost entirely due to Cyprus's non-dom exemption from the Special Defence Contribution layer, the abolition of stamp duty in the 2026 reform, and the indexation-based CGT regime.
The premium tier explains the five mechanisms behind that 2.7-percentage-point gap, the new 27-year non-dom extension feature, and the two pitfalls that can erase the advantage.
What we cover below
The free preview ends here. The full breakdown is in the premium tier.
- Non-dom status — the 17-year tax exemption window, who qualifies, and the new 27-year extension option
- The 60-day rule — Cyprus tax residency with two months of physical presence versus Greece's 183-day standard
- Cyprus PR-by-investment — the €300,000 threshold (ex-VAT), income proof structure, family-inclusive coverage
- Special Defence Contribution — the layer non-doms skip, and the rental SDC abolished entirely in 2026
- Capital Gains Tax — 20% rate, indexation base, raised €30,000 lifetime exemption
- Transfer fees vs VAT — when the 19% new-build VAT applies and when the reduced 5% rate kicks in (130 m² / €350K cap)
- Worked example — €600K Limassol, 5-year hold, head-to-head with a Greek equivalent
Sections below are reserved for premium subscribers. The intro, summary table, and roadmap are open to free readers; the full per-mechanism breakdown and the €600K Limassol worked example live behind the paywall.
Unlock the full Cyprus tax guide
The intro, the summary table, and the what-we-cover roadmap are free. The full non-dom / 60-day / PR / SDC / CGT / VAT breakdown — plus the €600K Limassol worked example with the head-to-head against the Greek tax guide — are reserved for subscribers.
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