Table of Contents
Tax Rules for Landlords
Whether renting out Cypriot property or earning German rental income as Cyprus resident – many expats waste money or violate rules. 2026 reform: SDC on rental income abolished.
Cypriot Rental Income
Income tax: 0% up to €22,000, then 20-35%. Deductible: repairs, insurance, management, mortgage interest, depreciation (3%/year building value). SDC abolished 2026. Via Ltd: 15% CIT. Short-term (Airbnb): 9% VAT. Long-term: VAT exempt.
This was exactly our experience: 2026 reform: SDC on rental income abolished. Cypriot Rental Income Income tax: 0% up to €22,000, then 20-35%.
– Entrepreneur from Vienna, in Nicosia since 2023
German Rental as Cyprus Resident
Germany: always taxable (limited liability, Anlage V). Cyprus: DBA credit method – German tax credited. SDC on foreign rentals abolished 2026. German advisor for German return, CMC for Cyprus.
CMC Optimization
Under €30,000: personal (€22,000 exemption). Over €30,000: consider Ltd (15% CIT + depreciation). Depreciation: 3% of building value/year (€250,000 building = €7,500/year deduction). Renovation: fully deductible in year incurred.
Taxing Rental Income in Cyprus
Topics: Tax Rules for Landlords, Cypriot Rental Income, German Rental as Cyprus Resident
CMC Practical Tip
2026 reform: SDC on rental income abolished.
Frequently Asked Questions
Personal: 0% to €22,000, then 20-35%. 3% depreciation. SDC abolished 2026. Via Ltd: 15% CIT on net profit.
Yes – 9% reduced rate. Registration from €15,600/year. Long-term (12+ months): VAT exempt.
From ~€30,000/year: often yes. CMC creates comparison calculation.
Taxable in Germany. Cyprus: DBA credit (no double taxation). Two advisors needed – CMC coordinates.
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.