Table of Contents
The Strategy Many Clients Use
Keep German property, rent it out, live in Cyprus. Attractive if planned correctly. Without professional tax coordination: can get expensive fast.
Tax Treatment
Germany: rental income ALWAYS taxable in Germany (limited tax liability). Deductible: depreciation, mortgage interest, maintenance. Cyprus: DBA credit method – German tax credited. SDC on rentals abolished since 2026 reform.
This was exactly our experience: SDC on rentals abolished since 2026 reform. Practical Organization Property management in Germany (€20-30/month).
– Expat from Hanover, in Paphos since 2022
Practical Organization
Property management in Germany (€20-30/month). Keep German bank account. German tax advisor for limited return. CMC coordinates between German and Cypriot advisors. Notarial power of attorney for trusted person in Germany.
When to Sell Instead
Tax-free sale after 10-year holding period (§23 EStG). CMC comparison calculation: rent vs sell depends on total assets, income structure, future plans.
Renting Out German Property While Living
Topics: The Strategy Many Clients Use, Tax Treatment, Practical Organization
CMC Practical Tip
SDC on rentals abolished since 2026 reform.
Frequently Asked Questions
Yes – German rental income always taxable in Germany. Cyprus credits German tax via DBA – no double taxation if structured correctly.
Yes. CMC for Cyprus, German advisor for limited return. CMC coordinates both.
Yes – as advertising costs in Germany. Plus depreciation, maintenance, insurance.
After 10-year holding period (§23 EStG). Plan timing carefully.
How CMC Supports You
At CMC Certus Management Consultants, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.