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
- 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?
- Value Added Tax: Rates & Exemptions
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Other comments
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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.