Taxes
Immovable Property Tax
As of 01/01/2017 Immovable property tax is abolished
Capital Gains Tax
The 2026 tax reform package, approved by the House of Representatives in December 2025, with the amending laws published in the Official Gazette on 31 December and most measures taking effect from 1 January 2026, substantially increased all three lifetime deductions under the Capital Gains Tax Law:
The primary residence exemption increased from €85,430 to €150,000, the agricultural land exemption from €25,629 to €50,000, and the general exemption from €17,086 to €30,000.
Correspondingly, where an individual claims a combination of the exemptions, the overall lifetime maximum is now €150,000 (previously €85,430, applicable up to 31 December 2025). The structure otherwise remains the same, the deductions are still granted once in a lifetime, until fully exhausted, and the 20% rate is unchanged.
A few points worth noting on the primary residence relief specifically, as the conditions were tightened/clarified alongside the increase: the property must have been used exclusively for the owner's own habitation for at least 5 consecutive years immediately preceding disposal (10 years for a second or subsequent primary residence disposal), the land area covered is limited to 1.5 decares, and the property must be disposed of within 1 year of ceasing to use it as the primary residence, otherwise the exemption is lost.
Two related 2026 amendments also touch the CGT regime more broadly: the definition of shares deriving value from Cyprus immovable property was tightened so that CGT applies where shares derive 20% (previously 50%) of their value from immovable property in Cyprus, and buildings/plots received in exchange for land were added to the exemptions.
So if you're updating a client note or website text containing the old figures, the substitutions are: €85,430 → €150,000 (residence and overall cap), €25,629 → €50,000 (agricultural land), €17,086 → €30,000 (other disposals), effective for disposals from 1 January 2026.