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:

  • 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.

Further reading

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Other comments

  • mmm1, 19 September 2009 Reply

    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!