CyprusCyprus GuideMoneyCapital Gains Tax

Capital Gains Tax

Who needs to pay it?

Capital Gains Tax

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:

  • Transfers due to death;

  • Gifts to close relatives such as spouses or children;

  • Gift to the government or a charity;

  • Exchanges or sale in accordance with Agricultural Land Laws;

  • 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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  • 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!
    Reply mmm1, 19 September 2009
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