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.
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The Capital gains tax rate in Cyprus is 20%.
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Disposals exempt from capital gains tax:
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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).
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Transfer by reason of death
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Gift made from parent to child or between spouses or relatives within the third degree of kindred
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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
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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
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Transfers of immovable property between estranged spouses after the issue of a divorce court order which constitutes a settlement of property between them
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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
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Exchange or sale of property under the agricultural land laws
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Transfer of property under an approved company reorganisation