In Cyprus from January 1, 2026, changes affecting the processing of real estate transactions and taxation on the sale of assets came into force, according to the explanations to the reform.
The key simplification for new transactions is the complete abolition of stamp duty (Stamp Duty) for sale and purchase agreements signed from January 1, 2026. Previously the levy was calculated on the value of the transaction and required separate procedures, it is now zero-rated for new contracts.
Lifetime capital gains tax deductions (CGT) have also been revised, which may reduce the taxable base for real estate sales by individuals. In particular, the limits of the personal deduction, the exemption for agricultural land and the deduction for a principal residence (subject to fulfillment of conditions and proof of documentation) have been increased. These parameters apply to contracts entered into starting in 2026.
A separate block of the reform relates to transactions involving shares in real estate companies. The threshold at which the sale of shares/shares qualifies as a real estate transaction for CGT purposes has been lowered – this increases the tax due diligence requirements for purchases of corporate shells with properties on the balance sheet.
In addition, exemptions for real estate exchange and barter schemes in development (e.g., when land is transferred to a developer in exchange for finished objects) have been extended, and control over compliance with tax procedures has been strengthened: if the parties are in arrears, transfer of ownership rights may be blocked, and Tax Clearance checks have become tougher.
According to the Department of Land and Cadastre of Cyprus (DLS), in 2025, foreign buyers (excluding Cypriot citizens) registered 7,255 sale contracts (sale contracts), of which 4,809 – buyers from outside the EU; the number of transferred objects (transfers/sales) amounted to 4,195 (2,234 – buyers outside the EU).
The top nationalities that most often appear in the “top ten” are: Russians, British, Israelis, Greeks, Romanians, Chinese, Ukrainians, Germans, Americans and Lebanese (Australians and Bulgarians are also found in Nicosia).
