Capital Gains Tax
Who needs to pay it?
Capital gains tax is payable by both residents and non-residents at a rate of 20 per cent on gains from the disposal of immovable property in Cyprus.
If the property is a principal residence, there’s a lifetime (i.e. once only) exemption of €85,430. For any other kind of property (e.g. a holiday home), only €17,086 is exempt, and this exemption is per registered owner, not per property. (You cannot claim both of these exemptions!)
Other exemptions from capital gains tax include the following:
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Transfers due to death;
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Gifts to close relatives such as spouses or children;
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Gift to the government or a charity;
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Exchanges or sale in accordance with Agricultural Land Laws;
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Exchanges of properties where the value is equal.
If you’ve made any improvements or additions to the property, this will be deducted from the assumed profit, thereby reducing your liability.
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Also in this section
- Banks: Where to manage your finances
- Accounts: How to open a bank account in Cyprus
- Cash, Cheques & Credit Cards: How to use them
- Cost of Living: What is the cost of living in Cyprus?
- Importing & Exporting Money: How to receive and transfer money
- Taxes in Cyprus: An introduction to Cyprus' tax system
- Income Tax Liability: Who is liable to pay income tax?
- Taxable Income: What part of my income is taxable?
- Taxation of Foreign Pensions: How will your pension be taxed in Cyprus?
- Taxation of Property Income: How much is tax on property income?
- Income Tax Rates: Calculating your income tax
- Calculation & Tax Return: Filing and payment
- Immovable Property Tax: Who needs to pay it?
- Capital Gains Tax: Who needs to pay it?
- Value Added Tax: Rates & Exemptions
Comments from other users
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CYP currency
All the articles I've gone through for Cyprus are showing in CYP (Cyprus pound). Just wanted to point out this no longer exists, Cyprus adopted the Euro 2 years ago!Thank you. Your comment will be published once it has been approved by the moderators.