Capital Gains Tax

Capital gains tax (CGT) is imposed at 20% on gains from the disposal of immovable property situated in Cyprus, whether or not the owner is a Cyprus tax resident. CGT also applies to the disposal of shares in companies that directly or indirectly own Cyprus immovable property. Following the 2026 tax reform, such shares fall within CGT where the Cyprus immovable property represents at least 20% of the market value of the shares (reduced from 50%).

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Lifetime exemptions for individuals (increased under the 2026 reform):

• Disposal of a private (primary) residence: €150,000 (up from €85,430)

• Disposal of agricultural land by a farmer: €50,000 (up from €25,629)

• Any other disposal: €30,000 (up from €17,086)

 

These are lifetime allowances.

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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 shareholders 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