Capital Gains Tax in Cyprus: 20% on Property Only, Shares Tax-Free

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You hold shares, ETFs, some crypto or a flat you may sell, and you live in Cyprus or plan to. Good news: Cyprus has one of the narrowest capital gains taxes in Europe. This guide shows how much you really pay on each asset type in 2026, who is caught, and the legal ways to pay less.

Cyprus capital gains tax in 2026: the key figures

Is this guide for you?

Read on if you…

• are a Cyprus tax resident with a share portfolio, crypto or property you may sell;
• are moving to Cyprus with unrealised gains and want to know what Cyprus will tax;
• own Cyprus real estate, directly or through a company, as a resident or non-resident.

Probably not your case if you…

• trade securities so actively that the Tax Department could treat it as a business, which is taxed as trading income;
• hold only foreign assets as a non-resident of Cyprus, where nothing is taxable here.

What is actually subject to capital gains tax in Cyprus?

Cyprus CGT is governed by the Capital Gains Tax Law of 1980, as amended. Its scope is narrow on purpose. Only two categories of gains are taxed:

1. Immovable property located in Cyprus: land, houses, apartments, plots.
2. Shares in companies that own Cyprus immovable property, directly or through other companies, to the extent the gain derives from the property. Shares listed on a recognised stock exchange are excluded, even if the company owns Cyprus real estate.

Everything else is outside CGT: foreign real estate, listed and unlisted shares of companies without Cyprus property, bonds, fund units and derivatives. Better still, profits from the disposal of securities (shares, bonds, units, options and similar instruments) are specifically exempt from income tax. So for a typical investor, portfolio gains are tax-free in Cyprus whether you hold for a day or a decade.

How much do you pay on each asset type?

The rate on everything in scope is a flat 20%. The real question is which box your asset falls into.

Two points stand out. First, residents and non-residents are treated the same on Cyprus property: location, not residence, drives the tax. Second, there is no holding-period discount on property. Sell after one year or twenty, the rate is 20%.

Crypto: the 8% regime

Before 2026, crypto gains fell in a grey zone: investment gains were often untaxed, while frequent trading was taxed as income at up to 35%. The 2026 tax reform introduced a flat 8% tax on gains from the disposal of crypto-assets, separate from both CGT and income tax. Full details, including losses and reporting, are in cryptocurrency taxes in Cyprus.

Dividends and interest

Dividends and interest are not capital gains, but investors ask. Cyprus-domiciled residents pay SDC on them; non-domiciled residents (non-doms) pay none for 17 years. For 2026 the reform lowered SDC on dividends from 17% to 5%. See tax breaks for expats and digital nomads in Cyprus for the non-dom rules.

How is the taxable gain on property calculated?

Follow these steps for a Cyprus property sale:

1. Start with the sale price.
2. Deduct the acquisition cost, or the market value at 1 January 1980 if you acquired it earlier.
3. Index the cost for inflation from the acquisition date to the sale date using the consumer price index. This alone can wipe out a large part of a long-held gain.
4. Deduct allowable expenses: capital improvements, transfer fees, legal fees, estate agent commissions and, in some cases, interest on the loan used to buy the property.
5. Apply your lifetime exemption, if any remains.
6. Multiply the rest by 20%.

The exemptions are lifetime amounts, not annual. The 2026 reform raised them to EUR 150,000 for a main residence you have owned and lived in for at least five years and EUR 30,000 for any other disposal, up from EUR 85,430 and EUR 17,086. The overall cap across all categories is EUR 150,000.

The seller also pays a 0.4% levy on the sale price to the Central Agency for the Equal Distribution of Burdens, which is not part of CGT. That levy and the buyer's transfer fees are explained in specific taxes in Cyprus.

Transfers that are not taxable disposals

• Gifts between spouses, parents and children, and relatives up to the third degree.
• Transfers on death (Cyprus has no inheritance tax).
• Gifts to a family company whose shareholders are family members, and gifts from such a company back to shareholders within five years, under conditions.
• Exchanges or sales under the agricultural land consolidation laws.
• Company reorganisations that qualify under the Income Tax Law.

Do you pay CGT if you are moving to or from Cyprus?

Moving in: Cyprus does not revalue your assets on arrival, but it does not need to. Your foreign shares and funds stay exempt, and your foreign property is outside scope. Only crypto gains realised while resident fall under the 8% regime.

Moving out: Cyprus has no exit tax for individuals. Leaving with unrealised gains costs nothing here. Your new country may tax later disposals from your original cost, so the timing of a sale can matter. The residence rules that decide which year you leave are in how to cease tax residency in Cyprus.

Comparing destinations: Portugal taxes most securities gains at 28% and Spain at 19% to 30%. See capital gains tax in Portugal and taxation of capital gains in Spain.

How do you report and pay?

• Property sales: the vendor files a CGT declaration (form TD 401) and pays within 30 days of the sale, or the Land Registry will not transfer title. The Tax Department issues the clearance needed for transfer.
• Crypto gains: declared in the annual personal income tax return via Tax For All.
• Securities gains: nothing to pay, but keep records; the Tax Department may ask whether the activity amounts to trading.

Common mistakes (and what they cost)

• Treating every share sale as exempt → shares in an unlisted company that owns Cyprus property are within CGT; the property-related gain is taxed at 20%.
• Forgetting indexation and costs → paying 20% on the nominal gain instead of the indexed gain can cost thousands on a property held ten years.
• Using the EUR 150,000 exemption on a home you lived in for three years → the main residence exemption requires at least five years of occupation; only the EUR 30,000 general exemption applies.
• Day trading and calling it investing → systematic, high-frequency trading can be reclassified as a business and taxed at up to 35% plus GHS contributions.
• Selling property before paying the CGT → the Land Registry will not transfer title without tax clearance, which delays completion and can breach the sale contract.

Frequently asked questions

Does Cyprus have capital gains tax in 2026?

Yes, but with a very narrow scope. The 20% capital gains tax applies only to gains on immovable property located in Cyprus and on unlisted shares of companies that own such property. Gains on other shares, bonds, funds and foreign real estate are not taxed. Crypto gains are taxed at a separate flat rate of 8% since the 2026 reform.

Are gains on shares and ETFs taxed in Cyprus?

No. Profits from the disposal of securities such as shares, bonds, ETF units and options are exempt from income tax and outside capital gains tax. The only exception is unlisted shares in a company holding Cyprus immovable property, where the property-related gain is taxed at 20%. There is no minimum holding period for the exemption.

What are the capital gains tax exemptions in Cyprus?

Individuals have lifetime exemptions: EUR 150,000 for a main residence owned and occupied for at least five years, and EUR 30,000 for any other disposal, with an overall cap of EUR 150,000. These replaced the previous EUR 85,430 and EUR 17,086 amounts in 2026. Farmers selling agricultural land have a separate exemption.

How is crypto taxed in Cyprus?

Gains on the disposal of crypto-assets are taxed at a flat 8% from 2026 under a regime separate from capital gains tax and ordinary income tax. Before the reform, investment gains were generally untaxed while professional trading was taxed as income. Mining, staking rewards and trading as a business may still be treated as income; check the latest Tax Department guidance.

Do non-residents pay capital gains tax in Cyprus?

Only on Cyprus immovable property and shares in companies holding it. The 20% rate, indexation and lifetime exemptions apply in the same way as for residents. Non-residents pay no Cyprus tax on securities, crypto held abroad or foreign property, and receive Cyprus dividends and interest without withholding tax.

Is there an exit tax when I leave Cyprus with unrealised gains?

No. Cyprus has no exit tax for individuals. Unrealised gains on shares, crypto or property are not taxed when you cease residency. After you leave, Cyprus can still tax a later sale of Cyprus property at 20%, and your new country of residence will apply its own rules to everything else.

Related guides

• Cryptocurrency taxes in Cyprus
• Tax breaks for expats and digital nomads in Cyprus
• Specific taxes in Cyprus
• How to cease tax residency in Cyprus
• Personal tax deductions and benefits in Cyprus
• Capital gains tax in Portugal
• Taxation of capital gains in Spain
• All country tax guides

Sources

• Cyprus Tax Department (Ministry of Finance)
• Cyprus legislation portal (CyLaw) – Capital Gains Tax Law 52/1980 as amended
• Tax For All portal – Cyprus Tax Department
• PwC Worldwide Tax Summaries – Cyprus: Income determination

This guide is general information, not personalised tax advice. See how we research and review.