8 Assets Exempt from Cyprus Capital Gains Tax (2026)
Cyprus capital gains tax (CGT) is one of the most narrowly scoped CGT regimes in the EU. It applies only to immovable property located in Cyprus, and to shares in companies whose principal assets are Cyprus property. Everything else - shares, bonds, crypto, foreign real estate, and more - is outside its scope.
The result is that most asset classes commonly held by investors, founders, and high-net-worth individuals are simply not subject to CGT in Cyprus. This guide covers the eight asset types that are fully exempt, the rate that applies when CGT does apply, and the key exemptions that reduce it further.
Full CGT overview: /learn/capital-gains-tax-cyprus
Financial Assets: Exempt from Cyprus CGT
1. Shares in Companies (Listed and Unlisted)
The disposal of shares in any company - public or private, Cyprus or foreign - is fully exempt from Cyprus capital gains tax.
This is one of the most valuable and frequently cited tax advantages of Cyprus. Whether you are selling shares in a Cyprus startup, disposing of a portfolio of listed equities, or exiting a holding company, the gain is not subject to CGT in Cyprus.
The exemption applies regardless of the holding period. There is no minimum holding requirement, no "substantial shareholding" threshold, and no distinction between short-term and long-term gains.
Full CGT rules: /learn/capital-gains-tax-cyprus
2. Bonds, Debentures, and Other Securities
Gains from the disposal of bonds, debentures, corporate notes, and similar debt instruments are not subject to Cyprus capital gains tax.
The exemption covers fixed-income instruments whether issued by governments, corporations, or financial institutions. Bond trading gains, redemption gains above par, and secondary market sales are all outside the scope of Cyprus CGT.
This makes Cyprus well-suited for fixed-income investors and bond portfolio managers who want to avoid CGT on portfolio rebalancing.
3. Cryptocurrency
Cyprus has not classified cryptocurrency as immovable property, so gains on crypto disposals are currently not subject to CGT under Cyprus law.
Cyprus CGT is governed by the Capital Gains Tax Law (Cap. 297), which applies only to immovable property and shares in property-holding companies. Cryptocurrency does not fall within this definition under current legislation.
Important note: frequent crypto trading may be treated as a business activity and taxed as income at standard rates (0-35%). Individual circumstances matter - this exemption applies to investment disposal, not trading income.
Crypto tax in Cyprus: /learn/crypto-tax-cyprus
Real Estate: When Cyprus CGT Does and Does Not Apply
4. Foreign Real Estate
Cyprus CGT applies only to immovable property located in Cyprus. Gains on property held in other countries are outside Cyprus CGT.
If you own property in Spain, France, Germany, or any other country, and sell it while resident in Cyprus, Cyprus does not impose CGT on that gain. The source country may impose its own CGT, and treaty provisions may apply.
This is particularly relevant for high-net-worth individuals who move to Cyprus while holding property abroad - they can manage the timing of foreign property sales without Cyprus-level CGT concern.
Transfers: Gifts, Inheritance, and Restructurings
5. Gifts to Family Members
Immovable property in Cyprus transferred as a gift between parents and children, or between spouses, is exempt from CGT at the point of transfer.
The family gift exemption is a common estate planning tool in Cyprus. Property can be transferred to the next generation without triggering CGT, provided the relationship qualifies (spouse, parent, child, grandchild in some cases).
The recipient takes ownership at the original acquisition cost for future CGT purposes - the gain is deferred, not permanently eliminated.
6. Property Received Through Inheritance
Immovable property received through inheritance is exempt from CGT at the time of transfer to the beneficiary.
When a beneficiary receives Cyprus property through a deceased estate, the transfer itself is not subject to CGT. Cyprus also has no inheritance tax (abolished in 2000), making the combination highly favourable.
As with gifts, the beneficiary takes on the acquisition cost of the original owner for future CGT calculations on any subsequent disposal.
7. Primary Residence Lifetime Exemption
The first EUR 85,430 of gain on a qualifying primary residence is exempt from CGT, with higher exemptions available for long-term ownership.
To qualify, the property must have been used as your main private residence for a continuous period. The exemption increases with the number of years of ownership and occupation. Gains above the exemption threshold are taxed at 20%.
This exemption is available once in a lifetime. It cannot be claimed multiple times across different properties.
8. Corporate Restructurings Under the EU Merger Directive
Asset transfers in qualifying mergers, divisions, and partial transfers of assets can be exempt from CGT under the EU Merger Directive as implemented in Cyprus law.
The EU Merger Directive provides a framework for tax-neutral corporate restructurings across EU member states. Cyprus has implemented the directive, allowing qualifying restructurings to be completed without triggering CGT at the time of the transaction.
This is relevant for groups restructuring holding arrangements, merging entities, or spinning off divisions. Professional advice is required to ensure the transaction meets all qualifying conditions.
Holding company structures: /learn/holding-company-cyprus
Cyprus CGT: What Is and Is Not Taxed
| Asset Type | CGT? | Notes |
|---|---|---|
| Shares in companies | No | Any company, any country, any holding period |
| Bonds and securities | No | All debt instruments |
| Cryptocurrency | No (current law) | Frequent trading may be income |
| Foreign real estate | No | Source country CGT may apply |
| Gifts to family | No | Gain deferred to recipient |
| Inherited property | No | No inheritance tax either |
| Primary residence | Exempt up to EUR 85,430 | Lifetime exemption, once only |
| Corporate restructurings | Potentially exempt | Must meet EU Merger Directive conditions |
| Cyprus property (general) | Yes - 20% | After deductions and exemptions |
Understanding the Scope of Cyprus CGT
The narrow scope of Cyprus CGT is a result of statute, not administrative practice. The Capital Gains Tax Law (Cap. 297) explicitly defines the assets within scope. Any asset not listed in that definition falls outside CGT entirely - no application is required, no ruling is needed, and no election must be made.
This contrasts with many other EU jurisdictions where CGT applies broadly to all capital assets and specific exemptions must be claimed. In Cyprus, the default position for most asset classes is exemption. CGT is the exception rather than the rule.
For founders, investors, and relocating professionals, this means that the most common asset disposals - selling company shares, rebalancing an investment portfolio, disposing of crypto holdings, or selling foreign property - are structurally outside Cyprus CGT from day one of residency.
Compare to other jurisdictions: /blog/countries-with-no-capital-gains-tax
Non-Dom status amplifies these benefits further. A Cyprus Non-Dom resident pays 0% income tax on dividends, 0% CGT on shares and securities, and only 2.65% GHS on dividend income up to the cap. The combination creates one of the lowest effective rates on investment returns of any EU member state.
Non-Dom status explained: /learn/non-dom
Frequently Asked Questions
Does Cyprus tax capital gains on shares?
No. Cyprus does not impose capital gains tax on the disposal of shares in any company - listed or unlisted, Cyprus or foreign. There is no minimum holding period and no threshold.
Is cryptocurrency subject to capital gains tax in Cyprus?
Under current Cyprus law, cryptocurrency is not classified as immovable property, so CGT does not apply to crypto disposals. However, frequent trading may be treated as business income and taxed at standard rates.
What assets ARE subject to capital gains tax in Cyprus?
CGT applies to gains from disposal of immovable property located in Cyprus, shares in companies whose principal assets are Cyprus immovable property, and rights over Cyprus immovable property (beneficial interests, usufructs).
What is the CGT rate on Cyprus property?
Capital gains on Cyprus property are taxed at 20% after deducting the original acquisition cost, improvement costs, and applicable lifetime exemptions (EUR 85,430 for primary residence).
Is the Cyprus CGT exemption on shares available to non-residents?
Yes. The CGT exemption on shares and securities is not restricted to Cyprus residents. Non-residents disposing of shares in Cyprus-registered companies are also exempt, provided the shares are not in a property-holding company.
Sources: PwC Cyprus Tax Facts 2026, Cyprus Tax Department.
Need personalized advice? Book a consultation with an expat tax specialist.
Sources: PwC Cyprus Tax Facts 2026, Cyprus Tax Department.
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