Rental income tax in Cyprus

Rent from property is taxable income. You can deduct 20% of the rent and some costs; from 2026 the defence contribution on rent is abolished, while income tax and GESY remain. We prepare the yearly figures.

Deduction20% of rent
FiledPersonal return
AlsoGESY 2.65% on rent
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A founder working on a laptop at a cafe terrace in LimassolChecked 28 October 2026

Steps and timeline

  1. 1

    Records

    Rent received, loan interest and the cost of the building, for each property.

    yearly
  2. 2

    Collect rent electronically

    Rent for Cyprus property is paid by bank transfer, card or another electronic method; a tenant cannot deduct rent paid in cash.

    every month
  3. 3

    Calculate and file

    Rent less the 20% deduction, then loan interest and capital allowances, goes into your personal return with your other income.

    yearly
  4. 4

    Pay GESY

    GESY contributions on rent are due even when income tax is zero.

    yearly

Documents

For your accountant

0 of 4 ready

The exact list depends on your situation; we confirm it before filing.

Who does what

What you do

  • Share your situation and goals
  • Collect documents from home
  • Agree the scope of work in writing

What we do

  • Check the requirements for your case
  • Prepare the documents and file the application
  • Follow up until the decision

Your coordinator

  • Plans the work and next steps
  • Keeps one timeline for everything
  • Reminds you of renewals and deadlines

Common mistakes

  • Forgetting GESY: income tax on rent can be zero, but GESY is still due
  • Deducting the whole loan payment instead of the interest only
  • Accepting rent in cash: Cyprus rent must be paid electronically
  • Leaving rent out because no tax is due: from tax year 2026 every resident with income files a return
  • Assuming a non-resident owner pays nothing in Cyprus

What affects the cost

The price depends on your situation. We explain the scope and expected costs before work begins.

Number of properties and tenantsLoan and building cost recordsOther income in the same yearResident or non-resident owner

Questions

Do non-residents pay tax on Cyprus rent?

Yes. Rent from Cyprus property is taxed in Cyprus whoever owns it, after the same 20% deduction, and the owner files a Cyprus personal return. GESY also applies: non-residents pay it only on income from Cyprus, and Cyprus rent is such income.

Can my tenant pay in cash?

No. From 1 July 2026 rent for Cyprus property is paid only by bank transfer, card or another electronic method.

How is rent taxed in numbers?

Take €18,000 of rent in 2026 and €2,000 of mortgage interest. Deduct 20% (€3,600), then the interest: €12,400 is taxable. If this is your only income, it is under the tax-free €22,000, so income tax is €0. With €40,000 of taxable salary as well, the total of €52,400 carries €7,620 of income tax instead of €4,000: the rent costs €3,620. GESY is due on top.

Sources

Figures checked 28 October 2026. Rules change: we confirm them for your case before you act.

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A coordinator replies within one working day with the next steps.

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