Cyprus Capital Gains Tax (CGT)

Leverage the EU’s most attractive exit environment. 0% tax on securities and optimized 2026 property exemptions.

While most EU jurisdictions penalize growth, Cyprus has reaffirmed its commitment to investors. Following the December 22, 2025 tax reform vote, Cyprus maintains its 0% tax on the disposal of shares and has modernized property exemptions to favor residents and Non-Doms.

The 2026 CGT Snapshot

In Cyprus, Capital Gains Tax is highly specific. It does not apply to most global investments, focusing primarily on Cyprus-situated immovable property.

Asset Type	Tax Rate (2026)	The Strategy
Shares, Bonds, Debentures	0%	Standard for Holding Companies
Crypto Assets	8% (Flat)	New 2026 “Article 20E” Rule
Cyprus Real Estate	20%	Optimized via Lifetime Exemptions
Shares in Property Companies	20%	Only if >50% value is Cyprus property

Cyprus Capital Gains Tax: Shares Exemption

The cornerstone of Cyprus’s status as a financial hub is the complete exemption of gains from the disposal of “Securities.”

What is covered: Shares, bonds, founder shares, and options.
2026 Advantage: This remains 0% regardless of whether you are a resident, Non-Dom, or a Cyprus Limited Company.
The Result: You can build, scale, and sell your business with zero exit tax at the Cyprus level.

Real-Estate & 2026 Exemptions

If you dispose of immovable property in Cyprus, a 20% tax applies to the gain. However, the December 2025 reform has protected the following lifetime exemptions for individuals:

Main Residence: Up to €85,430 of gain is tax-free (if owned for 5+ years).
Agricultural Land: Up to €25,629 of gain is tax-free.
General Exemption: Up to €17,086 for any other disposal. Note: These are lifetime limits. Our tax consultants help you “stack” these for maximum relief.

Frequently Asked Questions about Capital Gains in Cyprus

Is there capital gains tax on shares in Cyprus?

Generally, no. Gains from the sale of shares, bonds, and other securities are exempt from tax in Cyprus. CGT only applies when those shares belong to a “Property-Rich” company holding Cyprus real estate.

How much tax do you pay when selling a home in Cyprus?

You pay 20% on the profit. For example, if your indexed profit is €200,000 and you use the new €150,000 primary residence exemption, you only pay 20% on the remaining €50,000 (€10,000 tax).

Are property swaps taxable in Cyprus?

Under the 2026 reform, property swaps (Antiparochi) where an owner exchanges land with a developer for units are now tax-free.

Does Cyprus tax the sale of foreign property?

No. Capital Gains Tax in Cyprus only applies to property situated in Cyprus. Gains from the sale of real estate in London, Berlin, or Dubai are 0% taxed in Cyprus (though they may be taxed in the source country).

How is the "Gain" calculated in 2026?

The gain is the difference between the sale price and the original cost, adjusted for inflation (CPI) and any documented improvements made to the property. We provide an automated 2026 CGT calculator for our clients.

What happens if I sell shares in my own Cyprus Company?

If the company does not own immovable property in Cyprus, the gain is 0%. If it does own Cyprus property, the gain is taxed at 20% only on the portion attributed to the property value.

Don’t pay unnecessary tax on your hard-earned gains. The 2026 rules offer massive loopholes for those who structure correctly before the “Point of Sale.”