The present invention relates to a Capsicum annuum seed designated 35-240 RZ, which exhibits yellow colored blocky type fruit, medium maturation time, resistance against Tobamovirus pathotype P0, P1, P(1-2), P(1-2-3), resistance against fruit cracking, very regular production with little flushing and a high number of fruits. The present invention also relates to a Capsicum annuum plant produced by growing the 35-240 RZ seed. The invention further relates to methods for producing the pepper cultivar, represented by pepper variety 35-240 RZ.