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

Capital Gains Tax in Cyprus: The Short Answer

Cyprus charges capital gains tax (CGT) at 20% on profits from the disposal of immovable property located in Cyprus only. All other asset classes, company shares, ETFs, bonds, cryptocurrency, foreign property, precious metals, are exempt from CGT at 0%. This is one of the most favourable CGT regimes in the EU.

For comparison: the UK charges 20-24% CGT on shares and property, Germany charges income tax rate (up to 26.375%) on shares, France 30% on investment income. An investor selling €500,000 of shares or crypto in Cyprus pays no CGT. The same disposal in the UK could trigger a €95,000-120,000 tax bill.

What Is and Is Not Subject to Capital Gains Tax in Cyprus

• ✅ EXEMPT: Shares and securities listed on any recognised stock exchange
• ✅ EXEMPT: Unlisted company shares (Cyprus or foreign)
• ✅ EXEMPT: Cryptocurrency, confirmed by Cyprus Tax Department circular
• ✅ EXEMPT: Foreign real estate (property outside Cyprus)
• ✅ EXEMPT: ETFs, bonds, options and other financial instruments
• ⚠️ TAXED at 20%: Cyprus immovable property (land and buildings in Cyprus)
• ⚠️ TAXED at 20%: Shares in companies whose value derives >50% from Cyprus immovable property

The €17,086 lifetime exemption applies to all Cyprus property disposals in aggregate (not per transaction). Once that exemption is used, all further Cyprus property gains are taxed at 20%.

Cyprus Capital Gains Tax on Shares: 0% for Everyone

Cyprus charges 0% capital gains tax on the disposal of shares and securities. This applies to listed shares on any recognised stock exchange (NYSE, LSE, Euronext, etc.), unlisted private company shares (including startup equity and pre-IPO holdings), ETFs and investment funds, bonds and fixed-income instruments, options, derivatives, and warrants. There is no holding period requirement — whether you hold shares for one day or twenty years, the gain is exempt from CGT.

The 0% rate on share disposals applies equally to Cyprus tax residents and non-residents. A UK investor who sells shares in a Cypriot company while living in London pays 0% Cyprus CGT. A US fund manager who disposes of shares in a Cyprus holding company pays 0% Cyprus CGT. The exemption is unconditional and does not depend on residency, non-dom status, or the origin of the shares.

Cyprus Capital Gains Tax on Shares for Non-Residents

Non-residents pay zero Cyprus CGT on share disposals regardless of whether the company is Cyprus-registered or foreign. Cyprus law does not impose a withholding tax on capital gains from share sales. There is no requirement for non-residents to file a Cyprus tax return solely because they sold shares in a Cyprus company — provided the company does not derive more than 50% of its value from Cyprus immovable property.

The one exception is shares in a company whose asset value consists of more than 50% Cyprus immovable property. In that case, the gain on share disposal is treated as if it were a gain on property itself and taxed at 20% CGT. This anti-avoidance rule prevents the use of shell companies to transfer Cyprus real estate without triggering CGT. Standard operating companies, holding companies, and investment vehicles are not typically caught by this rule unless they hold significant Cyprus property.

Unlisted Company Shares and Startup Equity

The 0% CGT exemption explicitly covers shares in unlisted private companies. An entrepreneur who relocates to Cyprus before a company exit or secondary sale will pay 0% on the gain from selling private equity. This applies to shares in Cyprus companies, UK companies, US companies, and any other jurisdiction — the CGT exemption is based on Cyprus law and does not depend on where the company is incorporated or where the shares are traded.

Example: An entrepreneur holds shares in a German GmbH worth EUR 2,000,000. They become a Cyprus tax resident, wait at least 60 days to establish residency, and then sell the shares for EUR 3,500,000. Cyprus CGT on the EUR 1,500,000 gain: EUR 0. If the same disposal had happened while still German tax resident, German capital gains tax (Abgeltungsteuer) at 25% plus solidarity surcharge would have applied, resulting in approximately EUR 393,000 in tax.

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.

Cyprus has 0% capital gains tax on shares, ETFs, and crypto — and is one of only two EU member states with this advantage. See which other countries offer 0% CGT in our comparison of countries with no capital gains tax.

Capital Gains Tax in Cyprus for Non-Residents

Non-residents have very limited Cyprus CGT exposure. The rule is straightforward: you pay Cyprus CGT only if you dispose of immovable property physically located in Cyprus. All other asset classes — shares, bonds, funds, crypto, foreign property — are outside the scope of Cyprus CGT for non-residents.

Non-Resident Property Sales

A non-resident who sells a Cyprus apartment or plot of land pays 20% CGT on the net gain, calculated in exactly the same way as for a Cyprus resident. The same lifetime exemptions apply: EUR 85,430 for a principal residence (if you lived in the property), EUR 25,629 for agricultural land. Indexation relief also applies. There is no higher rate or additional withholding for non-residents.

The CGT liability must be declared and paid to the Cyprus Tax Department before the property transfer is registered at the Land Registry. The Land Registry will not complete the title transfer until a CGT clearance certificate (form N.313) is issued by the Tax Department, confirming that either CGT has been paid or no CGT is due.

Non-Resident Share Disposals: 0% CGT

Non-residents pay 0% Cyprus CGT when selling shares in Cyprus companies (listed or unlisted), provided the company does not derive more than 50% of its value from Cyprus immovable property. There is no withholding obligation on the Cyprus company when it facilitates a share sale between non-resident parties. No Cyprus tax return is required for non-residents whose only Cyprus activity is the disposal of qualifying shares.

Filing Requirements for Non-Residents with Cyprus CGT

Non-residents who sell Cyprus immovable property must file a CGT return (form IR167) within 30 days of the disposal date. Payment of the CGT is due at the same time. The gain is calculated in EUR regardless of the currency in which the sale is denominated. Non-residents are not required to register for income tax or file an income tax return unless they have additional Cyprus-source income beyond the property gain.

Cyprus Capital Gains Tax Exemptions: Complete List for 2026

Personal annual exemption: EUR 17,086

Each individual in Cyprus has a EUR 17,086 lifetime exemption on capital gains from the disposal of immovable property. This applies once in a lifetime and reduces the taxable gain. For example, if you sell a property and realise a gain of EUR 50,000, the first EUR 17,086 is exempt, you only pay CGT on EUR 32,914 (at 20% = EUR 6,583 tax).

Primary residence exemption: EUR 85,430

If you are selling your primary residence (the property you have lived in for at least 5 consecutive years), the first EUR 85,430 of gain is exempt from CGT. This is the most significant exemption and applies to the family home. Note: this exemption and the EUR 17,086 personal exemption can both be applied, giving a combined potential exemption of up to EUR 102,516 on the sale of a primary residence.

Agricultural land exemption: EUR 25,629

Sales of agricultural land qualify for an additional EUR 25,629 exemption.

Other CGT exemptions (complete list):

• Transfers on death (inheritance): exempt
• Gifts between parents and children: exempt
• Gifts between spouses: exempt
• Gifts to charities: exempt
• Transfers related to company reorganisations: exempt under certain conditions
• Disposal of shares NOT in property-owning companies: entirely exempt (Cyprus has no CGT on shares unless the company owns real estate)
• Disposal of securities on the Cyprus Stock Exchange: exempt
• Foreign real estate: gains on property outside Cyprus are NOT subject to Cyprus CGT

What IS subject to CGT in Cyprus:

• Disposal of immovable property located in Cyprus (land, buildings)
• Disposal of shares in companies where more than 50% of the company's value consists of Cyprus immovable property
• Rights related to Cyprus immovable property

CGT rate: 20% flat on the net gain after exemptions and allowable deductions (cost of acquisition, inflation adjustments, improvement costs).

Source: Cyprus Income Tax Law (Cap.297), Cyprus Land Registry and Survey Department, PwC Cyprus Tax Facts 2026.