What Tax Does a Seller Pay on a Flat in Cyprus in 2026
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If you sell a flat in Cyprus for more than you paid for it, you owe tax on the gain — 20%. For example, if the gain after all deductions comes to €50,000, the tax is €10,000. Foreigners who do not live in Cyprus pay this tax too.
This article explains how the gain is calculated, which costs can be deducted, which part of the gain is tax-free and what changed in 2026. What the purchase itself costs is covered in our article on how much it costs to buy a flat in Cyprus. The transaction is described in our guide to the process of buying property in Cyprus.
Content:
Who pays tax on a sale
The seller pays the tax. In Cyprus it is called capital gains tax, and it is charged on the gain from selling any property located on the island, whether a flat, a house or land. Where the seller lives makes no difference: Cypriots, foreigners and people who have never lived in Cyprus all pay it.
The same tax applies when selling shares in a company that owns Cypriot property. From 1 January 2026, this rule applies if the property makes up more than 20% of the company's value. The threshold used to be 50%, so selling a flat by selling the company that owns it, without paying tax, has become harder.
How the gain is calculated
The taxable gain is not simply how much more the flat sold for than it was bought for. It is calculated as follows:
Take the sale price.
Subtract the purchase price, increased in line with inflation for the years of ownership. The Cyprus consumer price index is used for this.
Subtract the costs of buying and selling.
From what remains, subtract the tax-free amount if the seller is entitled to it.
Pay 20% on the balance.
Costs that can be deducted:
Cost | Condition |
Property transfer fee paid on purchase | Land registry receipt |
Legal fees on purchase and sale | Invoice |
Renovations and improvements that increased the flat's value | Invoices; the amounts are also adjusted for inflation |
Interest on a loan taken to buy the flat | Subject to the Tax Department's conditions |
Estate agent's commission on the sale | Invoice and contract with the agent |
If the flat was bought before 1980, its Department of Lands and Surveys valuation as at 1 January 1980 is used instead of the purchase price.
Estate agent's commission
Commission to the estate agent is normally the seller's cost. Where the contract is silent, it is 3% of the price by law. This amount is deducted from the gain, so it is worth keeping the contract with the agent and the agent's invoice. On a sale for €300,000 the commission is €9,000, which saves €1,800 in tax.
Working as an estate agent in Cyprus without registration is prohibited, so it is worth checking that the agent holds a licence before signing a contract.
Which part of the gain is tax-free
Every seller can avoid tax on part of the gain. From 2026, these amounts have risen considerably.
Exemption | Before 2026 | From 1 January 2026 |
Sale of a flat or house the seller lived in | €85,430 | €150,000 |
Sale of agricultural land by a farmer | €25,629 | €50,000 |
Any other sale | €17,086 | €30,000 |
The €150,000 exemption applies if the seller lived in the flat for at least 5 consecutive years immediately before the sale. This is proven with electricity and water bills and bank statements.
The exemptions are granted once in a lifetime, not for each sale. The total of all exemptions over a lifetime is capped at €150,000. If a seller has already used €30,000 on the sale of one flat, they will have €120,000 left when selling their main home.
"Sellers most often lose money on paperwork. Renovation invoices get thrown away, the agreement with the agent is verbal, five years of utility bills are not kept. All of this is worth putting in one folder on the day you buy," says a tax adviser from Limassol.
When no tax is due at all
No tax is paid when property passes to a new owner without a sale:
a gift to a spouse, children or relatives up to the third degree;
a transfer to a family company;
a donation to a charity or the state;
an exchange of one property for another, subject to the Tax Department's conditions.
From 2026, exchanging land for flats in a future building is also fully exempt — when a landowner gives a plot to a developer and receives flats in the completed building in return.
Sample calculation
A flat was bought in 2019 for €200,000 and sold in 2026 for €300,000. Inflation indexation is left out of this example; in reality it would reduce the tax.
Item | Amount |
Sale price | €300,000 |
Purchase price | −€200,000 |
Transfer fee on purchase | −€4,600 |
Lawyer on purchase | −€2,000 |
Agent's 3% commission on sale | −€9,000 |
Lawyer on sale | −€1,500 |
Gain | €82,900 |
What happens next depends on how the flat was used:
The seller lived in it for 5 years. The gain is below the €150,000 exemption, so the tax is €0.
The flat was let, and the €30,000 exemption has not been used yet. The tax is 20% of €52,900, which is €10,580.
How to file and pay
The return is filed and the tax paid within 30 days of the sale. Until the seller has paid the tax, the flat cannot be registered in the buyer's name, so in practice it is paid before the transfer.
The return is usually prepared by the seller's lawyer or tax adviser. Late payment leads to a 5% penalty plus interest for each month of delay.
Tax in the seller's country of residence
The gain from selling a Cypriot flat may also be taxed in the country where the seller lives. To avoid paying twice, countries sign double tax treaties. Under them, tax on a property sale is usually paid where the property is located, and the country of residence credits the amount paid. How this works for a particular country is worth checking with a tax adviser before the sale.
Who should work out the tax in advance
Those who let their flat. The €150,000 exemption applies only to a home the seller lived in for 5 consecutive years before the sale. For a buy-to-let flat, €30,000 remains.
Those who have sold property in Cyprus before. The exemptions are granted once in a lifetime, and part of them may already have been used.
Those who have not kept their paperwork. Without renovation invoices and receipts for purchase costs, the tax is calculated on a larger amount.
What changed in tax on sales in 2026
The tax-free amounts rose: to €150,000 for a main home, €50,000 for a farmer's agricultural land and €30,000 for other sales.
Tax on selling shares in a company is now due if Cypriot property makes up more than 20% of its value, rather than more than 50% as before.
Exchanging land for flats in a building the developer will construct is fully exempt from tax.
Frequently asked questions
What tax is paid when selling a flat in Cyprus?
Capital gains tax at 20% of the gain. The gain is the sale price minus the purchase price adjusted for inflation, minus costs and the tax-free amount.
Does a foreigner who does not live in Cyprus pay the tax?
Yes. The tax is charged on the sale of any property on the island, wherever the seller lives.
How much of the gain is tax-free?
From 2026, €150,000 when selling a home the seller lived in for 5 consecutive years, and €30,000 for any other sale. The lifetime total of exemptions is capped at €150,000.
Can the agent's commission be deducted?
Yes, if you keep the contract with the agent and the agent's invoice. By law, the commission is 3% of the price where no other rate was agreed.
Is tax due if I give a flat to my children?
No. A gift to a spouse, children or relatives up to the third degree is not subject to capital gains tax.
Find a flat in Cyprus
If you are selling one flat to buy another, the Cyprus-Real.Estate catalogue lists flats in Cyprus as well as new developments — there are properties in every city on the island.
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