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Capital Gains Tax

(CGT)

The rate of Capital Gains Tax is 20% on profits obtained from the sale of immovable property situated in Cyprus, after providing for an increase indexation payment. The capital gains that are obtained from the sale of immovable property situated in a foreign country are exempt from capital gains tax.

The taxable gain is the result of the difference between sale proceeds and the original cost of property plus improvements cost. The total cost of property should be adjusted to include increase from the date of acquisition that took place not earlier that 1/1/1980, to the date of disposal. Increase can be estimated through the Cyprus consumer price index.

If the property transfers have VAT paid then Property Transfer Fee is Zero.

If the property has no VAT then will be paid 50% of the Accumulated Fee.