Quick Answer

Cyprus has no capital gains tax on shares, securities, or foreign property - these are fully exempt. A 20% CGT applies only to the disposal of immovable property located in Cyprus. Lifetime exemptions reduce the taxable gain: EUR 85,430 for a primary residence and EUR 17,086 for agricultural land.

Key Facts 2026

Capital gains on shares and securities	0%
Capital gains on crypto (Non-Dom)	0%
Capital gains on Cyprus real estate	20%
Capital gains on overseas property	0%
Primary residence lifetime exemption	EUR 85,430
Agricultural use lifetime exemption	EUR 17,086
Indexation allowance on property	Yes (purchase price adjusted for inflation)

Capital Gains Tax in Cyprus: 0% on Shares and Securities

Cyprus applies 0% capital gains tax on shares, funds, and most financial instruments. Only gains from Cyprus real estate are subject to CGT at 20%.

Last updated: May 4, 2026

Cyprus CGT on Shares and Securities: Zero Tax in All Scenarios

Cyprus applies 0% capital gains tax on the disposal of shares in any company - listed or unlisted, Cyprus-incorporated or foreign. The exemption is statutory under Section 3(c) of the Capital Gains Tax Law (Cap. 344) and covers: ordinary shares, preference shares, bonds and debentures, investment funds and ETFs, options and derivatives, and any other transferable securities.

The One Exception: Property-Holding Companies

If you sell shares in a company whose assets consist mainly (more than 50%) of Cyprus immovable property at the time of disposal, the gain is treated as a disposal of immovable property and subject to 20% CGT on the underlying property gain. This applies to direct and indirect ownership. It does not apply to companies listed on a recognised stock exchange.

No Minimum Holding Period

There is no minimum holding period for the 0% exemption. Shares held for one day or 20 years are equally exempt. There is no annual CGT allowance, no taper relief, and no filing obligation in Cyprus for share disposals - unlike the UK, Spain, or Germany where share gains must be declared even if a domestic exemption applies.

Cyprus vs Other Countries on Share Gains

UK: 10-20% CGT on shares above the £3,000 annual allowance. Spain: 19-30% progressive tax on all capital gains including shares. Germany: 26.375% Abgeltungsteuer flat rate on share gains, withheld at source. Cyprus: 0% CGT on all share and securities disposals, no filing requirement, no limit.

Cyprus CGT for Non-Residents: What Changes

Cyprus CGT is an asset-based tax, not a residence-based one. The taxable event depends on the nature of the asset, not where the seller lives.

Non-Residents Selling Cyprus Property

Non-residents selling Cyprus immovable property are subject to the full 20% CGT on the net gain - the same rate as residents. There is no reduced rate for non-residents, and no double tax treaty in force eliminates Cyprus CGT on Cyprus-sited property. Most treaties use the source-country principle for immovable property, meaning Cyprus retains the right to tax the gain.

Non-residents may still claim the lifetime personal exemptions: €17,086 for a property used as a main residence, and €85,430 for residential property that served as a principal private residence at any time.

Non-Residents Selling Shares or Foreign Assets

Non-residents have 0% Cyprus CGT on share disposals and gains from assets located outside Cyprus - identical treatment to residents. There is no withholding tax on share gains paid to non-residents and no obligation to file a Cyprus tax return solely because of a share disposal.

Practical Implication for Incoming Relocators

If you are planning to relocate to Cyprus and hold a large share portfolio, you do not need to liquidate it before moving. Gains realised after becoming a Cyprus tax resident continue to attract 0% CGT, and there is no exit tax triggered by establishing Cyprus tax residency - unlike Germany or the Netherlands, which impose departure taxes on unrealised share gains.

Cyprus CGT Indexation Table 1980-2025

Multiply the original purchase price by the factor for the year of acquisition to get the inflation-adjusted (indexed) cost. This reduces the taxable gain. The indexed cost is then subtracted from the sale price before applying the 20% CGT rate.

Year of Purchase	Indexation Factor	Example: €100,000 purchase indexed to
1980	9.05	€905,000
1981	8.26	€826,000
1982	7.52	€752,000
1983	6.98	€698,000
1984	6.49	€649,000
1985	5.79	€579,000
1986	5.40	€540,000
1987	5.15	€515,000
1988	4.87	€487,000
1989	4.49	€449,000
1990	3.74	€374,000
1991	3.44	€344,000
1992	3.20	€320,000
1993	2.98	€298,000
1994	2.78	€278,000
1995	2.62	€262,000
1996	2.48	€248,000
1997	2.37	€237,000
1998	2.28	€228,000
1999	2.18	€218,000
2000	2.09	€209,000
2001	2.01	€201,000
2002	1.93	€193,000
2003	1.87	€187,000
2004	1.78	€178,000
2005	1.67	€167,000
2006	1.60	€160,000
2007	1.53	€153,000
2008	1.45	€145,000
2009	1.42	€142,000
2010	1.42	€142,000
2011	1.37	€137,000
2012	1.32	€132,000
2013	1.29	€129,000
2014	1.28	€128,000
2015	1.28	€128,000
2016	1.27	€127,000
2017	1.26	€126,000
2018	1.23	€123,000
2019	1.22	€122,000
2020	1.22	€122,000
2021	1.19	€119,000
2022	1.12	€112,000
2023	1.08	€108,000
2024	1.06	€106,000
2025	1.03	€103,000

Approximate factors based on Cyprus Consumer Price Index series. Source: Cyprus Inland Revenue Department (Cap. 344). Verify the current year factor at taxdept.mof.gov.cy before filing a CGT return. Factors for years after 2025 are updated annually.

Cyprus Capital Gains Tax 2026: 0% on Shares & Crypto - infographic with key data and step-by-step breakdown — Cyprus Capital Gains Tax 2026: 0% on Shares & Crypto - data infographic for expats and entrepreneurs relocating to Cyprus

Frequently Asked Questions

Is there capital gains tax in Cyprus on shares?

No. Cyprus applies 0% capital gains tax on gains from the disposal of shares, bonds, ETFs, and other securities. This applies to both listed and unlisted shares, and to assets held anywhere in the world.

What is the capital gains tax rate on property in Cyprus?

20% on net gains from the disposal of immovable property located in Cyprus. Gains from foreign property are not subject to Cyprus CGT.

How is the CGT on Cyprus property calculated?

Sale price minus indexed cost base (adjusted for inflation) minus allowable expenses (transfer fees, legal costs, improvements). Lifetime exemptions of €17,086 to €85,430 apply depending on property type and use.

Are crypto gains subject to capital gains tax in Cyprus?

No — but they are now taxed under a different rule. From 2026, crypto disposal gains are subject to an 8% flat income tax under Article 20E, not under the CGT regime. Simply holding crypto is not taxable.

What is the 8% crypto tax rate in Cyprus and how does it work?

From 1 January 2026, cryptocurrency disposals in Cyprus are taxed at a flat 8% rate under Article 20E of the Income Tax Law. This is not capital gains tax - it is a standalone income tax on digital asset gains. The taxable amount is the disposal value minus the acquisition cost (including fees). A disposal includes selling crypto for fiat, swapping crypto for crypto, using crypto to pay for goods, and NFT sales. Simply buying or holding crypto is not taxable. Losses in the same tax year offset gains, but cannot be carried forward.

Does DAC8 affect crypto reporting for Cyprus tax residents in 2026?

Yes. DAC8 (EU Directive on Administrative Cooperation, 8th revision) requires all EU-registered crypto exchanges (Coinbase Europe, Bitstamp, Kraken EU entity, and others) to automatically report transaction data - including your name, tax ID, and total transaction values - to the tax authority in your country of residence, starting from 1 January 2026. If you are a Cyprus tax resident, your EU exchange data flows automatically to the Cyprus Tax Department. Non-EU exchanges are not directly covered by DAC8, though Cyprus participates in broader international financial reporting frameworks. The practical implication: comprehensive record-keeping is essential, and undeclared EU exchange gains are increasingly detectable.

Does Non-Dom status give any additional CGT advantages in Cyprus?

For shares and securities, no — the 0% rate applies to everyone. For property, no — the 20% CGT applies equally. Non-Dom status primarily benefits passive income (dividends and interest), not capital gains.

Do I pay CGT in Cyprus on gains from selling a foreign company?

No. Gains from selling shares in a foreign company are exempt from Cyprus CGT. The 0% exemption applies regardless of where the company is incorporated.

Is there a minimum holding period to avoid CGT on shares in Cyprus?

No. Cyprus applies 0% CGT on share disposals regardless of holding period. Whether you hold shares for one day or 20 years, the treatment is identical: zero tax. There is no taper relief, annual exempt amount, or minimum holding period requirement.

As a non-resident, do I pay Cyprus CGT when selling a Cyprus property?

Yes. Non-residents selling Cyprus immovable property pay the same 20% CGT as residents on the net gain. The lifetime personal exemptions (up to 85,430 EUR for a property used as a principal private residence) are available to qualifying non-residents. Most double tax treaties follow the source-country principle, meaning Cyprus retains the right to tax the gain.

How does the Cyprus CGT indexation allowance reduce the taxable gain?

The indexation allowance adjusts the purchase price for inflation. Multiply the purchase price by the factor for the year of acquisition. For example, a property bought in 2000 for 100,000 EUR has an indexed cost of approximately 209,000 EUR (factor 2.09). If sold for 300,000 EUR, the taxable gain is 91,000 EUR - not the full 200,000 EUR nominal gain. The 20% CGT then applies to that 91,000 EUR. Allowable expenses reduce the gain further.

What changed with capital gains tax in Cyprus in the 2026 tax reform?

Cryptocurrency disposal gains became taxable at a flat 8% from 1 January 2026 under Article 20E, ending their previous tax-exempt status. Disposals (selling, swapping, using crypto to pay) are now taxable income; holding crypto remains tax-free. This was the main CGT-related change in the 2026 reform, shifting crypto treatment from outside Cyprus's tax scope into a standalone income tax regime.

The core CGT rules on immovable property (20% on net gains) and securities (0%) were not changed by the 2026 reform. The lifetime exemptions of €17,086 to €85,430 on property remain in place. There is no new CGT on shares, ETFs, or bonds.

How can I legally reduce or avoid capital gains tax in Cyprus?

Capital gains tax in Cyprus can be eliminated through three legal strategies. Hold investments as shares or securities: disposals of shares, ETFs, bonds, and other securities incur 0% CGT regardless of gain size or holding period. Use lifetime exemptions on property: up to €85,430 on principal private residence (occupied as main home for at least 5 years), €17,086 on agricultural land, and €25,629 on other property. Apply indexation allowance: purchase price adjusts for inflation, substantially reducing taxable gain on older property.

Related Guides

Sources

Cyprus Capital Gains Tax Law (Cap. 344). 2026 Cyprus Tax Reform Package. Updated: April 2026.

For cryptocurrency disposals, use our Cyprus Crypto Tax Calculator to calculate the 8% flat rate on your gains. For property sales, the Cyprus Capital Gains Tax Calculator applies the indexation formula and lifetime exemptions automatically.

Frequently Asked Questions

Do non-residents pay capital gains tax in Cyprus?

Non-residents pay Cyprus capital gains tax only on gains from the disposal of immovable property located in Cyprus (land and buildings). The rate is 20% on the net gain after allowable deductions. Gains from shares, securities, and crypto are exempt from CGT regardless of whether you are resident or non-resident.

There is no CGT on share disposals for anyone in Cyprus. Non-residents also do not pay Cyprus income tax on passive income (dividends, interest) from Cyprus sources if they have no permanent establishment in Cyprus.

How is capital gains tax calculated in Cyprus on property?

Cyprus CGT on immovable property is calculated as: (Sale price minus Acquisition cost minus Allowable deductions) multiplied by 20%. Allowable deductions include the original purchase price indexed for inflation using the official CPI index, legal and professional fees, transfer fees paid at acquisition, and capital improvements.

Each individual has a lifetime exemption: EUR 17,086 for a main residence lived in for at least 5 years, EUR 25,629 for agricultural land transferred to a family member, or EUR 85,430 as a general lifetime exemption. Shares and securities are entirely exempt from CGT.

Did the 2026 tax reform change capital gains tax in Cyprus?

Yes - the 2026 reform introduced a new 8% flat rate on gains from the disposal of crypto-assets (Bitcoin, Ethereum, NFTs, tokens). Previously, crypto gains had no specific CGT treatment and were generally not taxable in Cyprus.

For shares and other securities, the existing 0% CGT rule remains unchanged. For immovable property, the 20% CGT rate also remains unchanged. The most significant change for investors is the new 8% crypto rate effective 1 January 2026. Non-dom status does not exempt crypto gains - the 8% applies to all Cyprus tax residents.

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