What is the property rental tax in North Cyprus and South Cyprus?

Southern Cyprus (EU)

Rental income is taxed at a progressive income tax rate.

Rates for individuals:

up to approx. €19,500 per year: 0%

then 20% – 35% depending on income

In addition, the Defence Contribution (SDC) is also paid:

approx. 2.25% of rental income

For short-term rentals (Airbnb), obligations may also arise:

registration,

in certain cases VAT (19%), if it is a business activity.

✅ Effective taxation often ranges from approx. 10-25%, depending on income and costs.

Northern Cyprus (TRNC)

Rental tax is simpler and lower.

Commonly paid:

10% of gross rental income, or

alternatively, the rate according to the tax office in the annual return

VAT is usually not paid for standard long-term rentals.

Short-term rentals (tourist) may have:

a higher rate or

obligation to register with the local authority.

✅ In practice, investors most often expect a tax of about 10%.