In short: Gross rental yields on Cyprus apartments are around 5.3% to 5.4% in Limassol and Paphos and about 4.7% in Nicosia, according to Global Property Guide data last updated in September 2026. After costs and tax, net yields are typically 1.5 to 2 percentage points lower, so landlords should expect roughly 3% to 4% net. From 1 January 2026, rental income is taxed at the normal personal income tax rates after a 20% deduction, and the old special defence contribution on rent has been abolished.
Gross yield vs net yield
Gross yield: the annual rent divided by the purchase price. A €200,000 apartment let for €1,000 a month earns €12,000 a year, which is a 6% gross yield.
Net yield: the annual rent minus running costs, divided by the full cost of buying. It is the number that tells you what you actually earn.
Gross yields are useful for comparing areas quickly. Net yields are what you should use to decide whether to buy.
Typical yields in Cyprus
Global Property Guide estimates average gross yields for 1-, 2- and 3-bedroom apartments from asking prices and asking rents on local portals. In its September 2026 update it reported:
Limassol: 5.38%, with one-bedroom apartments at 6.33%.
Paphos: 5.33%, with one-bedroom apartments at 5.62%.
Nicosia: 4.72%.
Larnaca was not covered in that dataset. The same source notes that net yields are typically 1.5% to 2% lower than gross. Smaller apartments tend to yield more than larger homes, because rents do not rise as fast as prices.
For current asking prices and rents by district, see the PropertyHub.cy monthly market report at https://propertyhub.cy/market-report. Use it to sense-check the rent you expect against what similar homes are listed for.
Costs that reduce your yield
Buying costs: VAT on a new build, or transfer fees on a resale, plus legal fees. These raise your total investment. Stamp duty no longer applies to contracts signed from 2026.
Communal fees: common expenses for apartments and gated complexes.
Municipal and sewerage charges: modest, but they vary by area.
Insurance and repairs: budget for appliances, air conditioning and repainting between tenants.
Letting and management: agency fees if you use one.
Empty months: even one month without a tenant cuts a year's rent by over 8%.
Mortgage interest: if you borrow, interest is a major cost, though for tax it is deductible.
How rental income is taxed
The rules changed with the tax reform that came into force on 1 January 2026.
Income tax: rental income is added to your other income and taxed at the personal income tax rates. From 2026 the bands are 0% up to €22,000, 20% from €22,001 to €32,000, 25% from €32,001 to €42,000, 30% from €42,001 to €72,000, and 35% above €72,000, according to PwC.
Deductions: you can deduct 20% of the gross rent for buildings, which replaces actual repair and maintenance costs, plus the interest on a loan used to buy the property. Capital allowances on the building may also apply.
Special defence contribution: until 31 December 2025, Cyprus tax residents who were also domiciled in Cyprus paid SDC at an effective 2.25% of gross rent. SDC on rent was abolished from 1 January 2026.
Health contribution: RSM Cyprus states that the GeSY national health contribution of 2.65% applies to rental income regardless of whether the landlord is tax resident. Check your position with an accountant.
Landlords living abroad: individuals who are not Cyprus tax resident are taxed in Cyprus on certain Cyprus-source income, and RSM lists rental income as taxed at the same 20% to 35% scale. Your home country may also tax the income, with a credit under a double tax treaty. Take advice in both countries.
Companies: a company that owns rental property pays corporation tax on the profit. From 2026, rental income of companies is treated as business income.
Electronic payments: from 1 July 2026, rent for any property in Cyprus must be paid by bank transfer, card or another approved electronic method. Cash is no longer allowed, whatever the amount.
Holiday lets: income from self-catering rentals through online platforms may be treated as business income. Check registration and licensing rules with the Deputy Ministry of Tourism before listing.
A worked example
This is an illustration with assumed figures, not market data.
You buy a resale apartment for €200,000. Transfer fees after the 50% reduction are €4,600, and legal fees are about €2,380 including VAT, so your total investment is about €206,980.
You let it for €1,000 a month, or €12,000 a year. Gross yield on the price: 6.0%.
Assume one empty month (€1,000), communal fees of €900, insurance and repairs of €800, and management of €600. Total costs: €3,300. Net rent before tax: €8,700.
Net yield before tax: €8,700 divided by €206,980 is about 4.2%.
For tax, the taxable rent is €12,000 minus the 20% deduction, which is €9,600. How much tax you pay depends on your other income and your residence.
Tips for landlords
Price the rent from real listings, not hopes.
Buy where tenants want to live: near work, universities and transport.
Keep records and receive rent electronically.
Register the tenancy properly and get a written lease.
Talk to an accountant before you buy, especially if you are not resident.
Sources
Global Property Guide, Gross rental yields in Cyprus (updated September 2026): https://www.globalpropertyguide.com/europe/cyprus/rental-yields
PwC Worldwide Tax Summaries, Cyprus, Individual, Taxes on personal income: https://taxsummaries.pwc.com/cyprus/individual/taxes-on-personal-income
PwC Worldwide Tax Summaries, Cyprus, Individual, Income determination: https://taxsummaries.pwc.com/cyprus/individual/income-determination
RSM Cyprus, Rental income and capital gains of Cypriot real estate: https://www.rsm.global/cyprus/overview-cypriot-real-estate
Andersen Cyprus, Cyprus Tax Reform, comprehensive update effective from 1 January 2026: https://cy.andersen.com/news/cyprus-news-cyprus-tax-reform-comprehensive-update-effective-from-1-january-2026/
Harris Kyriakides, Cyprus electronic rent payments from July 2026: https://www.harriskyriakides.law/insights/news/cyprus-electronic-rent-payments-july-2026/
PropertyHub.cy monthly market report: https://propertyhub.cy/market-report
This guide is general information, not legal or tax advice. Confirm current rules with a Cyprus lawyer or accountant before you decide.