Capital Gains Tax

Capital gains tax is imposed on gains from the sale of immovable property in Cyprus, irrespective of whether it i owned by Cyprus tax residents or not.  Capital gains tax is also impose on the sale of shares of companies which directly or indirectly own immovable property situated in Cyprus.

The Capital gains tax rate in Cyprus is 20%.

Disposals exempt from capital gains tax:

  • Capital gain from the subsequent disposal of immovable property purchased between 17 July 2015 and 31 December 2016 (does not apply to property acquired as a result of sale in settlement of debt).

  • Transfer by reason of death

  • Gift made from parent to child or between spouses or relatives within the third degree of kindred

  • Gift made to a limited company whose shareholders are and continue to be members of the disposer's family for a period of five years after the gift

  • Gift of property made by a limited company, where all shareholder are members of the same family, to any of it shareholders, when the property which is gifted was acquired by the company also as a gift

  • Transfers of immovable property between estranged spouses after the issue of a divorce court order which constitutes a settlement of property between them

  • Gift of property made to the Republic or gift of property made for educational, instructive or other charitable purposes to a local authority or to any approved charitable institution

  • Exchange or sale of property under the agricultural land laws

  • Transfer of property under an approved company reorganisation