Tax Treatment of Rental Income in Cyprus

The tax treatment of rental income in Cyprus depends upon the tax residency of the recipient and the location of the immovable property:

Tax residents of Cyprus
Rental income earned from immovable property situated in Cyprus or abroad, received by a tax resident of Cyprus ( a company or an individual), is subject to the following three taxes:

• Income Tax
• Special Defense Contribution (“SDC”) *
• General Healthcare System (“GHS”)

* Non domiciled tax residents are exempt from SDC on rental income

Non-tax residents of Cyprus


In the case of non-tax residents of Cyprus, only rental income from immovable property situated in Cyprus is subject to Cyprus Income Tax.

However, such income is exempt from SDC and GHS.

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