Cyprus Capital Gains Tax Guide 2026
Cyprus imposes capital gains tax (CGT) at 20% exclusively on gains from the disposal of Cyprus immovable property. Gains from the sale of shares, securities, bonds, and other intangible assets are entirely exempt from CGT, making Cyprus one of the most attractive jurisdictions globally for investment holding.
CGT in Cyprus is administered by the Tax Department of Cyprus. The scope of CGT is exceptionally narrow compared to most countries. For related guidance, see our Property Tax Guide → and Investment Income Guide →.
CGT Rate — 20% on Cyprus Property Only
The standard CGT rate is 20%, but it applies only to gains from the disposal of Cyprus immovable property located in the Republic of Cyprus. Key features:
- Gains on shares and securities: 0%
- Gains on intangible assets: 0%
- Gains on foreign immovable property: 0%
- Gains on movable property (art, collectibles, etc.): 0%
- Gains on disposal of shares of companies that hold Cyprus immovable property: may be subject to CGT in certain cases (look-through rule)
Exemptions and Reliefs
- Primary residence exemption: Gains up to EUR 85,430 on the sale of a primary residence are exempt (if owned for at least 5 years)
- Agricultural land: Exemption of up to EUR 42,715 on compulsory acquisition or disposal of agricultural land by a farmer
- Gifts between spouses/relatives: Transfers between spouses or up to third-degree relatives are exempt from CGT
- Indexation relief: The cost basis may be indexed for inflation (using the Consumer Price Index) for property held for a significant period
Calculation of CGT
CGT is calculated as: 20% × (Sale Price — Acquisition Cost — Indexation — Improvement Costs — Exemptions). The gain is the difference between the sale price and the indexed acquisition cost, less any allowable improvement expenditures and applicable exemptions. The taxpayer must submit a CGT return within 30 days of the disposal and pay the tax due.