A Cyprus resident pays a 2.65% GeSY contribution on rental income, interest and dividends; the income taken into account is capped at EUR 180,000 a year. The 2026 tax reform did not change the contribution.
Add 2.65% to the Cyprus rates for a resident: a deposit with domicile 17% + 2.65%, dividends 5% + 2.65%.
The tax reform laws were published on December 31, 2025 and apply from January 1, 2026. For a resident domiciled in Cyprus the defence contribution on interest is 17%, on Cyprus and EU government bonds and exchange-traded bonds 3%, and on dividends 5% instead of 17%. A resident not domiciled in Cyprus pays no tax on interest and dividends. Rent is exempt from the contribution and subject only to income tax.
For a domiciled resident: deposit 17%, government bonds 3%, corporate bonds 17% (exchange-traded 3%); for a non-domiciled resident 0%.
Gains on selling property in Cyprus are taxed at 20%; lifetime allowances from 2026 are EUR 30,000 in general and EUR 150,000 for a main home. Transfer fees are 3% up to EUR 85,000, 5% up to EUR 170,000 and 8% above; a 50% discount applies if the sale is without VAT, and no fee is due on a purchase with VAT. There has been no property tax since 2017.
Transfer fees on a EUR 200,000 resale apartment without VAT are EUR 9,200, EUR 4,600 with the 50% discount (2.3% of the price); a new build bought with VAT has no fee.