Does buying through a company avoid capital gains tax?

No — gains on shares whose value derives from Cyprus immovable property are within the CGT net by design. The company optimises income tax and succession, not exit taxes.

Can a company purchase qualify for the €300k residency route?

Yes, where the applicant (with spouse) is the sole ultimate shareholder of the acquiring company. Sequencing incorporation, contract and payments correctly is critical to the file.

What does running a Cyprus company cost yearly?

Budget a recurring four-figure sum for registered office, accounting, audit and filings. That overhead is the honest threshold test against your expected rental profit.

When does personal ownership win?

Single property, personal use, no significant rental income, straightforward family succession — simplicity beats structure. The company case builds with rental scale, portfolios and non-dom planning.

Buying Cyprus Property Through a Company: When the Structure Pays

Personal or corporate ownership is the structural fork every serious buyer hits. A Cyprus company brings 12.5% tax on rental profits, non-dom dividend treatment, share-based exits and cleaner succession — at the price of running a company. The answer depends on what the property is for.

12.5%

corporate tax on rental profit

0% SDC

on dividends for non-doms

PR-compatible

sole-owner company purchases qualify

01The tax mechanics that attract buyers

Rental profit inside a Cyprus company is taxed at 12.5% with expenses and interest deductible — against personal income tax bands that climb to 35% for larger rental incomes. Distribute profits as dividends and a non-domiciled shareholder pays no Special Defence Contribution on them for 17 years of Cyprus tax residence. For buy-to-let portfolios and buyers who are (or will become) Cyprus tax residents, the corporate wrapper compounds.

02What the company does NOT escape

Two persistent myths: first, selling the company's shares instead of the property does not sidestep capital gains tax — gains on shares deriving value from Cyprus property are expressly within the net. Second, VAT on a new-build purchase applies to the company as to a person, and the reduced 5% primary-residence rate is generally off the table for corporate buyers.

The company optimises income and succession; it is not a magic exit from transaction taxes.

03Residency compatibility

The €300k permanent residency route accommodates corporate purchases where the applicant (with spouse) is the ultimate and sole shareholder of the acquiring company. Structured correctly, a buyer gets the corporate wrapper's benefits and the family's residency from the same purchase — the sequencing of incorporation, purchase contract and payment evidence is exactly the kind of detail that decides whether the file sails or stalls.

04Costs, admin, and the honest threshold

A Cyprus company means incorporation costs, registered office, annual audited accounts and filings — a recurring four-figure yearly commitment. For a single apartment held for personal use, personal ownership usually wins on simplicity. The structure starts paying at meaningful rental income, multiple units, or when non-dom planning and succession are live goals. tax.com.cy runs the comparison on your actual numbers and, where the company wins, incorporates and administers it — one intro covering both the property and the structure.