Changes in Cypriot Tax Legislation in 2026

Year 2026 has brought several significant changes in Cypriot tax legislation, directly relevant to investors in Larnaca.

Abolition of Stamp Duty

Starting from January 1, 2026, the stamp duty on property purchase contracts has been completely abolished - a direct saving for every new buyer, whether foreign or local.

Abolition of SDC on Rental Income

The Special Defence Contribution (SDC) on rental income has been abolished for all residents starting in 2026 - rental income remains subject only to regular income tax and GESY contribution (2.65%), without any additional SDC levy.

Extension of Report Submission Deadlines

From the 2026 tax year onwards, the deadline for self-employed individuals and companies to submit tax reports has been permanently postponed to January 31 of the second year following the assessment year (this will first apply on January 31, 2028, for the 2026 tax year) - a significant structural change in the reporting timeline.

Continuation of Transfer Fee Discount

The 50% discount on transfer fees (first introduced in 2012) continues to be in effect as of 2026, although this is a benefit that has been extended from time to time in the past - therefore, it is advisable to keep track of future legislative updates on this matter.

What Does This Mean for Investors?

The trend of changes in 2026 is clearly towards easing conditions for investors and property owners - fewer levies, greater simplicity in rental taxation. However, tax legislation is constantly changing, and it is always advisable to verify the most current situation with a local tax advisor when making any transaction.

In Summary

The information in this article is a general overview and does not constitute personal tax advice. Tax rates and benefits may change and depend on the personal circumstances of each investor. It is always recommended to consult with an accountant and attorney specializing in Cypriot and Israeli taxation before making a purchase.