Cyprus Rental Income Tax Calculator
Calculate the tax on your rental income in Cyprus under the 2026 rules, including wear and tear allowance and GHS.
Rental Details
Disclaimer
This calculator reflects the 2026 Tax Reform: SDC on rental income has been abolished (effective 1 January 2026). Rental income is subject to personal income tax under progressive brackets and GHS at 2.65%. Wear and tear allowance is 20% of gross rental income for furnished properties. For rental property outside Cyprus, different rules may apply. Consult a tax professional for personalized advice.
Rental income in Cyprus is taxed under the personal income tax bands after a 20% wear-and-tear allowance, plus a 2.65% GHS contribution on the gross rent. Special Defence Contribution (SDC) on rental income was abolished from 1 January 2026.
How it works
- A flat 20% wear-and-tear allowance is deducted from gross rent, along with allowable expenses, to reach net taxable rental income.
- Net rental income is added to your other income and taxed at the progressive 2026 bands (0%-35%).
- GHS is 2.65% of the gross rent (capped at €180,000 of total income).
- SDC on rents (previously 3% on 75% of gross) no longer applies from 2026.
Frequently Asked Questions
What Our Clients Say
4.9(366+)“I have been using Polycarpos Philippou for both my temporary residency visa application and for my house purchase. Nikolas and Laura both worked very hard to achieve the former, which has just been successfully submitted, and the whole process was a pleasure. Equally, Ioannis and Anita are ensuring my house purchase is running smoothly. I have no hesitation whatsoever in unreservedly recommending Polycarpos Philippou & Associates.”
“I have been delighted with Philippou Law. They met all my legal needs related to buying a property in Cyprus and applying for a residence visa, including supporting me in negotiations with the builder, writing the contract, conveying the property, the KYC process with the bank, registering with the tax authorities and obtaining a VAT reduction certificate. My key contact has been Ioannis Pitsillos, who has been truly outstanding.”