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Cyprus capital gains tax 2026: selling property or land, with the indexation table

General information, not tax advice. Capital gains tax depends on how and when you acquired the property, what you spent on it, whether you trade in property and which exemptions you have already used. Always check your own sale with a licensed professional before you sign or file.

1. At a glance

2. What capital gains tax applies to

• Immovable property in Cyprus: land, plots, fields, houses, flats, offices and rights over land (including a registered lease of more than 15 years).
• Shares in companies that own Cyprus property directly, and from 1 January 2026 shares in companies that hold it indirectly where at least 20% of the shares' market value comes from Cyprus property (50% up to 2025). Shares listed on a regulated market of a recognised stock exchange are excluded. A double tax treaty may keep a different test.
• A "disposal" is wider than a sale. It includes exchanges, gifts, registered leases, options to buy and money received for cancelling a sale.
• The tax applies whatever your tax residence. Non-residents selling Cyprus property pay it too.
• Trading or investment? If you buy and sell property as a business (frequent sales, short holding, development, borrowing to resell), the profit is taxed as income instead: personal income tax up to 35% or corporate tax at 15%, and no CGT. Gains on other shares and securities are generally not taxed in Cyprus. Crypto has its own 8% rate (see our Cyprus crypto taxes 2026 guide).

3. How the taxable gain is worked out

Taxable gain = sale price − indexed cost − indexed improvements − allowable expenses − unused lifetime exemption

1. Sale price: the price declared in the sale agreement. The Tax Department can challenge a price that is below market value.
2. Cost: what you paid for the property. For property acquired before 1 January 1980, the cost is its value at 1 January 1980 under the Land Registry's general valuation. For gifts and inheritances, you generally take over the cost of the person you received it from.
3. Improvements: money spent adding to or improving the property (an extension, a new storey, a pool), not routine repairs. Keep invoices.
4. Indexation: cost and each improvement are increased by inflation using the Tax Department's index (see section 4).
5. Allowable expenses (subject to conditions): Land Registry transfer fees you paid when you bought, legal fees, a licensed estate agent's commission, advertising and valuation costs, and interest on a loan used to buy the property (to the extent not already deducted against rent).
6. Losses: a loss on a property disposal can be set against gains on other property disposals and carried forward against later ones.
7. Lifetime exemption (individuals only): deducted from what is left. The balance is taxed at 20%.

4. Capital gains tax indexation table (official inflation values)

The Tax Department publishes a monthly table of inflation values for capital gains tax, based on the consumer price index with 1986 = 100. To index a cost, multiply it by the index for the disposal date and divide by the index for the month you bought (or finished the improvement):

Indexed cost = cost × (index at sale ÷ index at purchase)

Practitioners commonly use the index for the month before the sale month, as the latest published figure. Check the exact month with your adviser.

The figures below are from the Tax Department's official Table of Inflation Values (Πίνακας Αξιών Πληθωρισμού), as published up to September 2026. The table's starting value for 1 January 1980 is 67.15. The calculation uses the monthly value for your purchase month; January and the annual average are shown here as a guide.

2026 monthly values published so far (the 2026 annual average will only be available after December 2026):

The latest published value is 269.17 for September 2026. The Tax Department adds a new month as it is published, so check its current table, or ask your adviser, for the value that applies on your sale date and for any purchase month not shown here.

5. Lifetime exemptions for individuals

• These are once-in-a-lifetime amounts, not yearly. Whatever you have not used carries over to later sales, up to the overall cap. For example, someone who used €17,086 on a sale before 2026 has generally €12,914 of the general exemption left from 2026.
• Main residence conditions (in summary): you lived in it as your home for at least 5 years, the plot is no more than 1,500 m², and you sell within a year of moving out. Co-owners share the exemption according to their shares.
• Only individuals qualify. Companies get no lifetime exemption.

6. Gifts, inheritance and other exempt transfers

These transfers are exempt from capital gains tax (conditions apply):

• Transfers on death (inheritance).
• Gifts from parents to children, between spouses and between relatives up to the third degree.
• Gifts to a family company whose shareholders stay members of the donor's family for 5 years, and certain gifts back from a family company to its shareholders (kept for at least 3 years).
• Gifts to approved charities, the Republic or local authorities.
• Exchanges of property, to the extent the gain goes into the new property (the tax is deferred, not cancelled). Land exchanged with a developer for units in the new building is also exempt if the development is completed within 5 years.
• Expropriations, approved company reorganisations, certain loan restructurings and transfers between former spouses after divorce.
• Land, or land with buildings, bought at market value from an unrelated seller between 16 July 2015 and 31 December 2016 is exempt on its future sale.

The person receiving a gift or inheritance takes over the original cost, so the tax may arise when they later sell. Gifts carry their own Land Registry fees: nothing for parents to children, and 0.1% for spouses and relatives up to the third degree (see our Cyprus property taxes guide).

7. Seller and buyer: who pays what when property is sold

The seller generally needs a Tax Department certificate that capital gains tax and the 0.4% levy have been paid (or are not due) before the Land Registry will register the transfer. From 2026 the Tax Commissioner can also refuse consent to a transfer if the seller or buyer has not met their tax obligations.

8. Worked example: selling a plot of land in 2026

Maria, a Cyprus resident who does not trade in property, bought a building plot in June 2010 for €80,000. She paid €2,000 in transfer fees at the time. She sells it in October 2026 for €200,000, paying €1,500 in legal fees and €6,000 in estate agent's commission. She has never used a lifetime exemption.

Without indexation, the gain would have been €110,500 and the tax €16,100, so indexation saves Maria €3,862. It removed about €19,300 of purely inflationary "gain". If the plot had been Maria's farmland and farming was her main occupation, the €50,000 agricultural exemption would apply instead.

9. Declaring and paying the tax

• Deadline: the seller submits a capital gains tax declaration to the Tax Department within one month (about 30 days) of the disposal, and in any case before the transfer at the Land Registry. The disposal date is the date of the sale agreement, not the date of transfer.
• Form: the Tax Department's declaration for disposal of immovable property (Form T.D. 401, with supporting questionnaire T.D. 413; Form T.D. 402 for shares), with the sale agreement and evidence of every cost you deduct.
• Payment: the tax is paid with the declaration, on the seller's own calculation. The Tax Department can check the declared price within six months and raise an additional assessment.
• Late filing and payment: a €250 penalty for individuals (€1,000 for companies) for late declarations, 5% of the tax if paid late (plus another 5% if still unpaid two months later), and interest at the public default rate from one month after the disposal.
• File even if there is no tax to pay (for example, a loss or a gain covered by your exemption). The Land Registry needs the clearance.
• If the property was let, expect to be asked for evidence that the rent was declared (see our Cyprus rental income tax guide).

Need help with your sale?

Use the enquiry chatbot on our homepage and click "Get matched free" to be matched, free, with an independent licensed professional (accountant or lawyer). They can prepare the indexed computation and file the declaration. Cyprus Tax Connect does not give tax, legal or property advice. See our legal disclosure and privacy notice.

Frequently asked questions

What is the capital gains tax rate on property in Cyprus?

20% of the gain on selling (or otherwise disposing of) immovable property in Cyprus, and on selling shares in companies that own Cyprus property. It applies to residents and non-residents, individuals and companies. If you trade in property as a business, income tax or corporate tax applies instead.

How much tax do I pay when I sell land in Cyprus?

If you are not trading in land, you pay 20% capital gains tax on the gain: the sale price less your inflation-indexed cost and improvements and your allowable expenses, less any unused lifetime exemption (€30,000 general, or €50,000 for agricultural land sold by a farmer, from 2026). The seller also pays a 0.4% levy on the sale price. Land Registry transfer fees are paid by the buyer.

How does CGT indexation work in Cyprus?

Your purchase cost and the cost of any improvements are increased by Cyprus inflation, using the Tax Department's table of inflation values (consumer price index, 1986 = 100), from the date of purchase or works (or 1 January 1980 for older property) to the date of sale. Only the gain above inflation is taxed.

What are the capital gains tax exemptions in Cyprus in 2026?

For disposals from 1 January 2026, individuals have once-in-a-lifetime exemptions of €150,000 for a qualifying main residence, €50,000 for agricultural land sold by a farmer and €30,000 for any other disposal, with an overall lifetime cap of €150,000. Up to 31 December 2025 the figures were €85,430, €25,629 and €17,086. Companies get no lifetime exemption.

Is gifting property to my children subject to capital gains tax in Cyprus?

No. Gifts from parents to children, between spouses and between relatives up to the third degree are exempt from capital gains tax, as are transfers on death. The person who receives the property takes over the original cost for a future sale.

When do I file and pay capital gains tax in Cyprus?

The seller must submit a capital gains tax declaration to the Tax Department within one month of the disposal (the date of the sale agreement), and in any case before the transfer at the Land Registry, and pay the tax with it. Late filing and late payment carry fixed penalties and interest.

Related guides

See also property tax in Cyprus 2026 (transfer fees, VAT, annual fees), the Cyprus rental income tax guide, the Cyprus income tax calculator 2026, the moving to Cyprus guide, the Cyprus company setup guide and Cyprus crypto taxes 2026, or go back to the Cyprus Tax Connect homepage.

Sources

• Tax Department – Table of Inflation Values (Πίνακας Αξιών Πληθωρισμού), values to September 2026, Ministry of Finance (mof.gov.cy)
• Tax Department – Table of inflation values from 1980 (1986 = 100), National Open Data Portal, CC BY 4.0 (in Greek)
• Tax Department – Πίνακας Αξιών Πληθωρισμού (current table, in Greek)
• PwC Worldwide Tax Summaries – Cyprus capital gains tax and 0.4% levy (reviewed August 2026)
• PwC Cyprus – Tax Facts & Figures 2026 (exemptions, determination of gain)
• Andreas Georghadjis LLC – Capital Gains Tax in Cyprus under Law 242(I)/2025 (declaration, penalties)
• International Tax Review – Cyprus tax reform from 1 January 2026
• RSM Cyprus – Real Estate Tax Guide 2026 (0.4% levy)
• Department of Lands and Surveys – 0.4% levy certificate for transfers (in Greek)
• Department of Lands and Surveys – Sale/Exchange transfer fees

Last reviewed 26 October 2026.