Capital gains tax is imposed at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property, excluding shares listed on any recognized stock exchange.
The gain that arises after deducting from the sale price the value of the property at 1 January 1980 or its cost of acquisition, if the land was purchased after 1 January 1980, as adjusted with the cost of living index is taxed at the rate of 20%. The gain is further reduced by other direct costs.
On 9 July 2015 the House of Representatives enacted into Law the following proposal which was published in the Cyprus Goverment Gazette on 16 July 2015:
Subject to conditions, land as well as land with buildings acquired in the period 16 July 2015 up to 31 December 2016 will be exempted from Capital Gains Tax upon its disposal.
For more information on the above issues please contact us
For more information on the above issues please contact us
