Cyprus Rental Income Tax in 2025: A Complete Guide for Landlords

At Square One, we don’t just develop high-performing real estate—we equip investors with the knowledge they need to protect and grow their income.

Whether you’re a new landlord or an experienced investor, understanding how Cyprus taxes rental income in 2025 is key to maximising returns and remaining fully compliant.

This guide explains everything landlords need to know, including personal income tax, GeSY healthcare contributions, corporate structures, and deductions that apply.

Who Is Taxed on Rental Income in Cyprus?

Cyprus Tax Residents: Taxed on worldwide rental income. Non-Residents: Only taxed on Cyprus-sourced rental income. Corporate Landlords: Taxed under Cyprus’ corporate income tax regime.

Personal Income Tax on Rental Income (2025)

If you're a tax resident individual earning rental income, only 80% of your gross rent is considered taxable. This structure benefits landlords by providing automatic relief before deductions.

Additional Deductions Allowed:

2025 Income Tax Brackets for Individuals

This structure makes property rental a particularly efficient income source—especially for first-time landlords or those financing new purchases.

GeSY Contribution on Rental Income (2025)

In addition to income tax, all Cyprus tax residents must pay the General Healthcare System (GeSY) contributions on their rental income.

Rate: 2.65% of gross rental income No deductions allowed Applies to both domiciled and non-domiciled residents

Example: Gross Rental Income: €24,000 GeSY Payment: €24,000 × 2.65% = €636

Even if you qualify as a non-domiciled resident—and are exempt from the 17% Special Defence Contribution (SDC)—you still pay the GeSY tax.

Corporate Taxation on Rental Income (2025)

If your property is owned under a Cyprus company, your rental income is taxed under corporate rules.

12.5% corporate tax on net taxable profits Broader range of deductible expenses compared to individuals

Deductible Expenses Include:

For high-income landlords or those operating multiple units, a corporate structure may provide long-term tax efficiency and strategic flexibility.

Important Notes for Landlords

Understanding how rental income is taxed in Cyprus ensures you remain compliant while optimising returns.

Below are key points every landlord should keep in mind in 2025:

Why Investors Choose Square One

At Square One, we help investors navigate the full property lifecycle—from acquisition to tax considerations and long-term yield optimisation.

We currently manage a growing portfolio of 32 developments across Cyprus, offering secure and high-return investment opportunities: 10 completed projects 12 developments under construction 9 off-plan properties available for early investors

Our dedicated team works closely with rental management specialists and tax advisors to ensure you have the right support from day one.

Invest Confidently with Square One

Whether you're planning to earn passive income or scale your real estate portfolio, understanding taxation is part of investing smartly.

At Square One, we don’t just deliver beautiful homes—we deliver clarity, performance, and long-term value. If you're considering rental property investment, we also recommend reading our Buy-to-Let Guide: Benefits of Investing with SQONE.

It outlines why so many international investors choose Cyprus and how Square One simplifies the entire process—from purchase to property management and rental guarantees.

Explore our available units or speak to a Square One advisor today at www.squareone.com.cy.