Tax guide · 6 min read

Tax on rental income in Cyprus for non-residents (2026 update)

How rent from a Cyprus apartment is taxed in 2026 – income tax bands, the 20% deduction, the end of the Special Defence Contribution on rent, and what non-residents should check.

Limassol city centre. Photo: Sofiia Vytrishko / Unsplash

If you buy an apartment in Limassol and rent it out, the rent is Cyprus-source income. Here is how it is taxed in 2026 – after the tax reform that took effect on 1 January 2026 – and what non-resident owners should check. Tax is personal, so treat this as a map, not a final answer.

Income tax: the same bands as other income

Rental income is added to your other Cyprus-taxable income and taxed at the personal income tax rates. According to published guides to the 2026 rules, the bands are:

The first €22,000 of total taxable income is taxed at 0%. Whether and how this applies to a non-resident individual depends on their circumstances – confirm with a Cyprus tax adviser.

The 20% deduction

For rent from buildings, a deemed deduction of 20% of the gross rent is allowed, without receipts, in place of actual repair and maintenance costs. Interest on a loan used to buy the property and capital allowances on the building (not the land) can also be deductible.

Special Defence Contribution on rent: abolished from 2026

Until 31 December 2025, Cyprus tax-resident, domiciled landlords paid Special Defence Contribution (SDC) of 3% on 75% of gross rent – an effective 2.25%. As part of the 2026 tax reform, SDC on rent was abolished from 1 January 2026.

GeSY (health system) contribution

Cyprus tax residents pay a 2.65% GeSY contribution on rental income, within an overall annual income cap. Non-residents generally have no GeSY liability, as it applies to residents.

Your home country

Rent from Cyprus may also be taxable where you live. Cyprus has double tax treaties with many countries, which usually allow tax paid in Cyprus to be credited against tax at home. Check the treaty between Cyprus and your country of residence.

Short-term lets are different

Holiday letting is treated as a business: it requires registration with the Deputy Ministry of Tourism, and VAT registration becomes compulsory above €15,600 of annual taxable turnover. If you plan holiday lets, take advice before you start.

Practical checklist

• Get a Cyprus tax identification number (TIN) – you will need it when you buy anyway.
• Ask a Cyprus accountant whether you must file a return and how the bands apply to you.
• Keep records of loan interest and costs.
• Check the double tax treaty with your country.
• For guaranteed-rent projects, ask how the rent is paid and documented.

This article is general information, not tax advice. It summarises published guides to the 2026 rules; tax treatment depends on your residence and circumstances. Always confirm with a qualified Cyprus tax adviser.