Capital Gains Tax

For more detailed information about Capital Gains Tax, please either scroll down on this page (quicker) or use the main menu on the left.

Tax Charge

Tax is only imposed on profits from disposal of immovable property situated in Cyprus, on companies’ shares (not listed in any stock market), which have immovable property in Cyprus.

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 67, 15.

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

Individuals’ Lifetime Exemptions

ExemptionAmount ₤
For sale of own residence 50.000
For sale of agricultural land by a farmer 15.000
For other sales 10.000