Cyprus Extends Deadline for Non-Taxation of Rental Income

The Cyprus Tax Department has announced an extension of the deadline for submitting Form T.F.1220, concerning the non-taxation of rental income, until March 31, 2026. This extension follows Circular 2/2025, which applies to lease agreements concluded after November 13, 2017. The circular will remain in effect until the same date. Specifically, the option of non-taxation applies to cases where the property is leased to a person subject to tax for carrying on a business activity. In such cases, the lessor must inform the Tax Officer within 30 days of signing the lease, by submitting the aforementioned form. This extension provides property owners with additional time to comply with their tax obligations and choose the non-taxation of their rental income, provided they meet the conditions set out in the circular. After April 1, 2026, the process will change, requiring immediate notification to the Tax Officer within 30 days of signing the lease to opt for non-taxation.