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:

• 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