Cyprus Rental Yield and Rental Income Tax Calculator 2026
Enter the price, monthly rent and costs (per month or per year). Add your other income so the rent lands in the right tax band.
Written and maintained by Antonis Katsonis · Rules for tax year 2026 · Last verified: 2 September 2026
Result
Average gross yield on Cyprus apartments: 5.4% (RICS, Q1 2026), Limassol about 6%, Nicosia 5%. Yours is above average.
The property yields 5.5% gross. From €12,000 of rent a year, after costs and tax you keep €8,182, or €682 a month.
- Net yield (before tax)
- 4.9%
- After-tax yield
- 3.7%
- Annual rent
- €12,000.00
- GESY (2.65%)
- €318.00
- Taxable rent (after 20% deduction)
- €9,600.00
- Income tax on rent
- €2,300.00
- Total tax and contributions
- €2,618.00
- Net rent after costs and tax
- €8,182.00
- Per month
- €681.83
Special Defence Contribution on rent was abolished from 1 January 2026 and is not included. GESY applies to Cyprus tax residents only.
The result is an estimate for information only and is not tax, legal or financial advice.
How it is calculated
Gross yield = annual rent ÷ purchase price. Net yield = (annual rent − costs) ÷ price.
Income tax: from gross rent deduct a 20% statutory allowance, loan interest and 3% annual building wear and tear. The remainder is added to your other income and taxed at the 2026 bands.
From 1 January 2026 the 3% Special Defence Contribution on rent is abolished. GESY at 2.65% on gross rent remains, subject to the €180,000 total income cap. From 1 July 2026 rent must be paid by bank transfer or card, not cash.
Worked example
| Purchase price (incl. costs) | €220,000 |
| Monthly rent | €1,000 |
| Costs (common charges, insurance, maintenance) | €1,200 |
| Your other taxable income | €30,000 |
| Gross yield | 5.5% |
| Net yield (before tax) | 4.9% |
| After-tax yield | 3.7% |
| Annual rent | €12,000.00 |
| GESY (2.65%) | €318.00 |
| Taxable rent (after 20% deduction) | €9,600.00 |
| Income tax on rent | €2,300.00 |
| Total tax and contributions | €2,618.00 |
| Net rent after costs and tax | €8,182.00 |
| Per month | €681.83 |
Frequently asked questions
Do I still pay Special Defence Contribution on rent?
No. The tax reform abolished the 3% Special Defence Contribution on rent from 1 January 2026. For rent up to 2025 it was 3% on 75% of gross rent. GESY at 2.65% remains.
Is it the same if I am not a Cyprus tax resident?
Income tax on rent from a Cyprus property is due from every owner, resident or not. GESY is paid only by Cyprus tax residents, so if you live abroad ignore the GESY line.
What is a good yield in Cyprus?
Gross yields of 4–6% are typical for apartments in Limassol and Nicosia, with large differences by area.
Related calculators
Sources and rule validity
- Tax Department – rental income
- KPMG Cyprus – tax reform: SDC on rent abolished from 2026
- GESY – contributions on other income
Rules for tax year 2026 · Last verified: 2 September 2026
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