By Nexora Cyprus editorial team · General information — seek advice for your circumstances
A company may help organise co-investment, financing and governance. It also adds accounts, filings and the need to distinguish company money from shareholders’ personal funds. Compare acquisition, rental operation, distributions and eventual sale before choosing the owner.
Holding a building alongside other assets does not automatically make its future share sale tax-free. A company structure must be assessed against the property rules, rather than an assumed exemption for all shares.
Under Capital Gains Tax Law 52/1980, shares in a company directly owning Cyprus immovable property fall within the statutory definition of property. For indirect holdings, the current test is at least 20% of share market value derived from Cyprus immovable property, disregarding liabilities for the ratio.
The 20% tax applies to the chargeable property gain under the statutory calculation, subject to relevant exclusions. A mixed portfolio or an operating business with a building is not automatically exempt. The CGT guide explains the assessment.
Individual allowances belong to eligible individuals; a company cannot claim the personal main-residence allowance merely because a shareholder lives in its property.
The Ministry of Interior states that the permission regime covers non-EU nationals, foreign companies and companies controlled by foreign nationals as defined by law. Incorporating a Cyprus company is therefore not an automatic way around acquisition restrictions.
Check the ownership and control structure before signing. Prepare the relevant company, shareholder and property documents for the District Administration where permission is required. See the official property-purchase guidance.
A company’s taxable profits are subject to the corporate income-tax rules. An individual’s rent is assessed under the personal rules. Compare the actual permissible deductions, financing, any capital allowances and contributions for each owner. Do not automatically copy an individual rental deduction into a company calculation.
A company-level tax calculation is only part of the comparison. Salary, dividends, loans, private use and eventual distributions can have further consequences for the shareholder. Rental SDC was abolished from 2026; it should not be presented as a unique non-dom advantage.
VAT depends on the supply, use and parties. Do not assume every residential rental becomes taxable simply because rent exceeds a registration threshold. Obtain a property-specific VAT assessment.
The Land Registry’s transfer-fee rules distinguish VAT-paid transactions and other transfers, with reductions and exceptions. A company share transfer and a registered transfer of the property are different transactions, but that distinction does not remove the need to assess CGT and any other applicable charges.
Use the official transfer-fee guidance for the proposed transaction. Obtain a written breakdown of fees, VAT, taxes and professional charges rather than relying on a single headline percentage.
Ask for a quote that separates initial setup, annual work and transaction-specific advice. A company should be selected because the complete arrangement fits the owners’ needs, not because of an assumed tax-free exit.
Capital Gains Tax Law 52/1980 governs property disposals and relevant shares. Income Tax Law 118(I)/2002 governs the separate income-tax assessment. The acquisition and fee guidance above addresses different parts of the transaction. This is general information, not a property-specific opinion.
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Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently. Consult a qualified Cyprus adviser for guidance specific to your situation. The information on this page is general guidance only and does not constitute legal, tax, accounting, immigration or financial advice. Specific advice should be obtained based on the facts of each case.
— References linked in this article
Read each reference alongside the claim it accompanies and check current amendments before relying on it. General information — seek advice for your circumstances.
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