Properties in Cyprus are subject to capital gains tax at the rate of 20% on the gain from sale. However, the first €17,086.01 of gain are tax-exempt for individual owners, while couples who own a property jointly are exempt from paying tax on the first €34,172.03.
If you wish to sub-lease your property, and have used the property as your residence for at least 5 years prior to the sub-lease, then you are exempt from paying tax on the first €85,430.07 of the gain from the sub-lease.
All exemptions are granted only once in the lifetime of each individual. Should you decide to sub-lease your property to a third party, Cyprus law allows you to transfer the full amount of any payment made in foreign exchange to overseas destinations at the time of sub-lease, subject to the payment of capital gains tax. The equivalent of the full lease price paid by the lessee and any increase in the value of the property may be transferred immediately.