Cyprus has consistently pursued a business-friendly tax regime, and the January 2026 reforms have strengthened this further. The country boasts the lowest corporate tax rate in the EU at 12.5%. Crucially for those seeking a Cyprus investment property, the Annual Immovable Property Tax and Inheritance Tax have been abolished. The January 2026 reforms also abolished Stamp Duty on purchases and the Special Defence Contribution on rent. Furthermore, there is a new €150,000 Capital Gains Tax exemption per property, and the first €22,000 of rental income is tax-exempt.
The 2026 Tax Landscape
The table below compares Cyprus against Greece and Portugal across the key tax obligations that affect property investors and high-net-worth residents.
| Tax / Levy | Cyprus | Greece | Portugal |
| Annual Immovable Property Tax | ABOLISHED (2017) | Yes | Yes (IMI) |
| Inheritance Tax | ABOLISHED (2000) | Up to 10% | 10% stamp |
| Stamp Duty on Purchase | ABOLISHED (Jan 2026) | 0.3–0.4% | 0.8% |
| Corporate Tax Rate | 12.5% (EU lowest) | 22% | 21% |
| Capital Gains Tax Exemption | €150,000 (2026) | €25,000 | €0 (primary res) |
| Rental Income Tax (first €22,000) | 0% — tax exempt | Taxed | Taxed |
| Special Defence Contribution on rent | ABOLISHED (Jan 2026) | N/A | N/A |
Source: Cyprus Tax Department; European Commission comparative tax data 2026.
Non-domicile tax residents in Cyprus benefit from complete exemption from tax on global dividend and interest income for 17 years. Combined with zero inheritance tax, no annual property tax, and the capital gains exemption, Cyprus offers one of Europe’s most favourable environments for wealth structuring and asset protection.
EU Permanent Residency: The Plan B
Cyprus’s Fast-Track Permanent Residency programme under Regulation 6(2) remains one of the most cost-effective and straightforward pathways to EU residency in 2026. Unlike temporary Golden Visa schemes in other jurisdictions, Cyprus Permanent Residency is a permanent, lifetime permit granted upon approval and is not subject to renewal.
Eligibility Requirements
| Cyprus Permanent Residency — Eligibility at a Glance | |
| Minimum property investment | €300,000 + VAT |
| Secured annual income from abroad | €50,000 p.a. |
| Additional income — spouse | + €15,000 |
| Additional income — per dependent child | + €10,000 |
| Property type | New residential from developer |
| Permit validity | Lifetime (10-yr biometric card) |
| Minimum visits to Cyprus | Once every 2 years |
| Pathway to citizenship | 7 years legal residence |
Source: Cyprus Migration Department, Regulation 6(2) — Fast-Track Permanent Residency Programme 2026.
Investment Options for Cyprus Permanent Residency
| Investment Category | Resale Eligible? | VAT | Notes |
| New residential property (from developer) | No — new only | 19% (or 5% reduced) | Most popular; PR immediately on purchase |
| Commercial property (offices, hotels, shops) | Yes | 19% | Resale qualifies; must rent separate accommodation |
| Shares in Cyprus company (5+ employees) | N/A | N/A | Must maintain investment; company needs physical presence |
| Units in Cyprus investment funds (AIF/RAIF) | N/A | N/A | Regulated funds; must be Cyprus-domiciled |
Source: Cyprus Migration Department; Civil Registry and Migration Department Regulation 6(2) 2026.
| Cyprus uniquely combines EU legal protection, genuine lifetime Permanent Residency, a zero-property-tax environment, and competitive yields — at the most accessible entry point in the EU. |
Why Paphos? The Prospecta Advantage
Paphos property is Cyprus’s premium lifestyle district, featuring a UNESCO World Heritage coastline, an international airport, championship golf courses, and a fast-growing expat community. The district recorded the highest annual price growth of any Cyprus district in 2025 at approximately 8.9% year-on-year, supported by strong foreign buyer demand.
Prospecta Development, established in 1980, has been delivering homes and investment properties in Paphos for over four decades. The company currently offers six active developments in the Paphos district, all eligible under the Cyprus Permanent Residency programme. Prospecta Development handles the end-to-end process, from property selection and legal facilitation to after-sales care under the Prospecta Care programme.
For international investors, a Cyprus investment property through Prospecta Development is not simply a real estate play — it is a foundational asset in a resilient, forward-looking wealth strategy.