ARTICLE · 17 JUNE 2021

Holding Cypriot Real Estate

RSM Cyprus

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This section discusses the most important tax implications of the direct holding of real estate. Firstly, it discusses the impact for resident individuals and non-resident individuals.

CyprusTax

George Themistocleous

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DIRECT HOLDING OF REAL ESTATE

This section discusses the most important tax implications of the direct holding of real estate. Firstly, it discusses the impact for resident individuals and non-resident individuals. Thereafter it discusses the impact for resident companies and non-resident companies.

Resident individuals

Personal income tax

Income derived from the real estate such as rental income is subject to personal income tax up to 35%, Special Defence Contribution (if the resident individual is also domiciled in Cyprus) with a rate of 3% on the 75% of rental income and contributions to General Health System at the rate of 2.65%.

Deductibility of costs, interest, and depreciation

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