Taxation in Cyprus

The rate of Capital Gains Tax (CGT) is 20% on the sale of property located in Cyprus. Profits from the sale of shares owned by a company that owns property in Cyprus are also taxed at 20%.

CGT is calculated by deducting the cost of purchasing the property (1st January 1980 is the set date) from the sale price and then adding on the effect of the retail price index to the date of sale. It is allowable to deduct genuine expenses and other costs incurred in selling the property.

There are certain CGT exemptions, including in the case of the following:

Where the gain relates to the sale of a principal residence, individuals are allowed EUR85,430 as a deduction from CGT liability calculations (with certain restrictions). Where the property is not a principal residence, the exemption is reduced to EUR17,086. This is a once only lifetime allowance.

 

Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations. Its main features are:


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