Cyprus Rental Yield and Rental Income Tax Calculator 2026
Enter the price, monthly rent and costs (per month or per year). Say whether you are Cyprus-domiciled for Special Defence Contribution and give your other income for the correct tax band.
Result
- Net yield (before tax)
- 4.9%
- After-tax yield
- 3.6%
- Annual rent
- €12,000.00
- Special Defence Contribution (3% on 75%)
- €270.00
- GESY (2.65%)
- €318.00
- Taxable rent (after 20% deduction)
- €9,600.00
- Income tax on rent
- €2,300.00
- Total tax and contributions
- €2,888.00
- Net rent after costs and tax
- €7,912.00
- Per month
- €659.33
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.
Special Defence Contribution of 3% on 75% of gross rent (Cyprus-domiciled tax residents only, non-doms are exempt). GESY 2.65% on gross rent, subject to the €180,000 total income cap.
Worked example
| Purchase price (incl. costs) | €220,000 |
| Monthly rent | €1,000 |
| Costs (common charges, insurance, maintenance) | €1,200 |
| Loan interest | €0 |
| Building value (excl. land) for 3% wear and tear | €0 |
| Your other taxable income | €30,000 |
| I am a Cyprus-domiciled tax resident | ✓ |
| Gross yield | 5.5% |
| Net yield (before tax) | 4.9% |
| After-tax yield | 3.6% |
| Annual rent | €12,000.00 |
| Special Defence Contribution (3% on 75%) | €270.00 |
| GESY (2.65%) | €318.00 |
| Taxable rent (after 20% deduction) | €9,600.00 |
| Income tax on rent | €2,300.00 |
| Total tax and contributions | €2,888.00 |
| Net rent after costs and tax | €7,912.00 |
| Per month | €659.33 |
Frequently asked questions
Who pays the Special Defence Contribution, tenant or landlord?
The landlord owes it. If the tenant is a company or self-employed they withhold it from the rent and pay it over. Otherwise the landlord pays it directly (30 June and 31 December).
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
Rules for tax year 2026 · Last verified: 2 September 2026
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