Buy-to-Let Investment Calculator
Enter the purchase price, loan details, rent, and running costs to estimate your cashflow, yields, and total return on a Cyprus buy-to-let property.
Buy-to-Let Investment Calculator
Estimate your cashflow, yields, and total return on a Cyprus buy-to-let property.
Purchase
5% if primary residence (conditions apply)
Added to purchase cost — not financed
Fixed fees at completion
Financing
Typically max 70–80% for BTL
Bank age limit typically 65
Income & running costs
8% ≈ 1 month/yr — typical Cyprus residential
Maintenance, insurance, tax provision
Appreciation assumption
Conservative long-run estimate — not guaranteed
Exit strategy
When you plan to sell the property
Used to index the cost basis for CGT and for the real (inflation-adjusted) return
Agent commission + legal fees, % of sale price
Key metrics
At exit (5 yrs)
Rental income tax not included — varies per individual (income tax bracket + 2.65% GESY). Consult your accountant.
Transfer fees calculated on tiered statutory rates (3%/5%/8%) with 50% exemption for resale per current Cyprus legislation.
New developments are fully exempt from transfer fees where VAT is paid.
Vacancy of 8% ≈ 1 month vacant/year.
Appreciation is an assumption, not a guarantee.
Capital Gains Tax estimated at the flat 20% Cyprus rate, using the general €17,086 once-in-a-lifetime exemption and cost indexation approximated by your inflation assumption (not the official CPI tables). Actual allowable deductions may differ — consult your accountant.
Cumulative cashflow assumes year-1 net cashflow repeats unchanged every year until exit — it does not model rent growth.
For indicative purposes only — not financial or investment advice.
How We Calculate the Key Investment Metrics
A plain-English breakdown of every yield, return, and ratio produced by the calculator — so you know exactly what each number means and how it is derived.
Building blocks — used across all metrics
| Term | How it is derived |
|---|---|
| Total acquisition cost | Purchase price + VAT (new builds) or transfer fees (resale) + legal / closing costs |
| Cash invested | Total acquisition cost − loan amount. This is the actual cash you bring to completion. |
| Effective rent | Gross monthly rent × (1 − vacancy rate). Accounts for the months the property sits empty. |
| Annual net cashflow | (Effective rent − mortgage − communal expenses − running costs) × 12 |
| Year 1 total return | Annual net cashflow + principal repaid in year 1 + property appreciation estimate |
| Sale value at exit | Purchase price × (1 + annual appreciation)^exit years |
| Cyprus Capital Gains Tax | 20% × (sale value − indexed cost basis − selling costs − €17,086 lifetime exemption). Cost basis is indexed for inflation over the holding period. |
Yield & return metrics explained
| Metric | Formula | What it tells you |
|---|---|---|
| Gross yield | (Monthly rent × 12) ÷ Total acquisition cost | A quick benchmark before deducting any costs or vacancy. Useful for comparing properties at a glance. |
| Net yield | Annual net cashflow ÷ Total acquisition cost | The real income return on the full property value after vacancy, mortgage, and all running costs. |
| Cash-on-cash return | Annual net cashflow ÷ Cash invested | Shows how hard your actual cash deposit is working. A positive figure means the rent covers all costs and returns money to you. |
| Leveraged return | Year 1 total return ÷ Cash invested | Combines cashflow, mortgage principal repaid, and appreciation. This is the full picture of what your equity earns in year 1. |
| Rent cover ratio | Effective rent ÷ Total monthly obligations | Banks typically require ≥ 1.25×. Below 1.0× means rent does not cover the mortgage and costs — the property costs you money each month. |
| Break-even rent | Mortgage + communal + running costs | The minimum monthly rent needed to cover all outgoings with zero profit. Anything above this is positive cashflow. |
| Payback period | Cash invested ÷ Year 1 total return | Approximate number of years to recover your initial cash outlay, assuming year 1 performance repeats. Shorter is better. |
| Annualized return (nominal) | (Cash invested + Total profit at exit ÷ Cash invested)^(1 ÷ exit years) − 1 | The compound annual growth rate of your cash across the whole holding period, from purchase to sale. |
| Inflation-adjusted (real) return | (1 + Annualized return) ÷ (1 + inflation rate) − 1 | Your annualized return in today’s purchasing power — strips out the effect of inflation. |
- All metrics are indicative and based on the inputs you provide.
- Appreciation is an assumption, not a guarantee.
- Rental income tax is not included — consult your accountant for your personal tax position.
- Capital Gains Tax uses the general €17,086 lifetime exemption and approximates cost indexation with your inflation assumption — actual CGT depends on official CPI indexation tables and allowable deductions.
- Not financial or investment advice.