Capital Gains Tax

For more detailed information about Capital Gains Tax, please either scroll up or down this page (quicker) or click below to go to the relevant section:

Tax Charge | Profit Determination | Exemptions | Individuals’ Lifetime Exemptions

Tax Charge

Tax is only imposed on profits from disposal of:

  • immovable property situated in Cyprus,
  • companies’ shares (not listed in any stock market), which have immovable property in Cyprus,
  • shares of companies which own directly or indirectly shares in a company or companies which have immovable property situated in Cyprus and at least 50% of the value of these shares arises from the market value of the immovable property.    

Any trading profits from the disposal of shares of companies, which own directly or indirectly immovable property in Cyprus, will be subject to CGT in case such profits are exempt under Income Tax Law.

The disposal proceeds subject to CGT, from the sale of shares of companies which hold directly or indirectly property in Cyprus, are restricted to the market value of the immovable property held.

Profit Determination

The tax is imposed on the net profit from disposal at the rate of 20%.

The net profit is calculated as: the disposal precedent less the greater of the cost or market value on 1 January 1980 adjusted by inflation. The Inflation is calculated by using the official Retail Price Index. The index on 1 January 1980 was 34,96 (base year 2005).

For more detailed information about Capital Gains Tax, please either scroll up or down this page (quicker) or click below to go to the relevant section:

Tax Charge | Profit Determination | Exemptions | Individuals’ Lifetime Exemptions

Exemptions
  • Transfer by reason of death
  • Gifts to relatives within the third degree of kindred
  • Gifts to a company of which the shareholders are and will continue to be members of the disposer’s family for five years after such gift
  • Gift by a company, of which all the shareholders are members of the same family, to any of its shareholders when the property gifted was also acquired by the company as a gift. The property must remain in the hands of the donee for a period of at least three years
  • Gift to the Republic or to a local authority for educational or other charitable purposes or to approved charitable institutions
  • Exchange or sale in accordance with the Agriculture Land (Consolidation) Laws
  • Exchange of properties where the values of the immovable properties being exchanged are equal
  • Gain on disposal of shares, which are listed on any Stock Exchange
  • Gains from transfer of property or shares in case or reorganization

For more detailed information about Capital Gains Tax, please either scroll up or down this page (quicker) or click below to go to the relevant section:

Tax Charge | Profit Determination | Exemptions | Individuals’ Lifetime Exemptions

Individuals’ Lifetime Exemptions
Exemption Amount €
For sale of own residence 85.430
For sale of agricultural land by a farmer 25.629
For other sales 17.086

For more detailed information about Capital Gains Tax, please either scroll up or down this page (quicker) or click below to go to the relevant section:

Tax Charge | Profit Determination | Exemptions | Individuals’ Lifetime Exemptions

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