In the Republic of Cyprus, the Capital Gains Tax Rate is set at 20%
The following tax allowances are made to individuals, subject to certain conditions:
If the disposal relates to a private residence (not a holiday home), it is subject to an allowance of €17,080 for each year it has been owned by the individual, up to a maximum of €85,400 (5 years).
It must be noted that this allowance extends to the sale of an individual's private home, and is available just once during his/her lifetime.
For a company based in Cyprus, Capital Gains Tax is payable at 20% on any realised capital
gain. No exemptions are allowed for companies.
Please also note:
- Residency is beyond the scope of this Law.
- Any capital loss from the
disposal of a property is carried forward to the next
disposal.
- Capital gains in respect of immovable properties
outside the Republic are not within the law's scope
- Gains
accruing from the disposal of company shares listed in the recognized Stock
Exchange are not subject to Capital Gains Tax.
|
|
For the purposes of our guide to capital gains tax in Cyprus, the following definitions apply:
Property:
(a) Immovable Property situated in the Republic of Cyprus
(b) shares of companies the property
of which consists of immovable property situated in
the Republic of Cyprus
Person: any individual
Disposal: the sale of a property or piece of land
Capital Gain: the profit from
the disposal of the property by any person, and the portion thereof which
is not subject to tax under Cyprus' Income Tax Laws
Profit: means the selling price less
the cost of acquisition, the transfer fees, any interest
paid for the acquisition of the property and the indexation
allowance.
Shares: the portion(s) of individual ownership in a company, the property of which consists of real estate in the Republic of Cyprus |
'Disposal' does not include any of the following:
-
Transfer due to death.
-
Gift to or between family members up
to the 3rd degree of relationship.
-
Exchange of property of equal values
-
Gift to a family-owned company, of which the shareholders
do not change for the 5 years following the gift.
-
Transfer of property as part of a company restructuring or reorganisation.
-
Charitable Donations
-
Transfer to the Republic's Government
Capital Gains Tax Deductions can also be claimed for the rate of inflation during the period of ownership, for legal fees, transfer taxes, stamp duty, mortgage interest paid, and the cost of any improvements you've made to the home during your ownership.
And last, but by no means least: In the Republic of Cyprus, Capital Gains Tax declarations must be submitted to the Inland
Revenue Department within one month from the date of disposal. All
Capital Gains Tax is normally payable upon the submission of this
declaration to the IRD, but in any case before
the formal transfer of the property.
|
Practical things to know about Cyprus' Capital Gains Tax and the Inland Revenue Department
|
We tell you what others don't.
Bear in mind that you're dealing with Cypriots, not British bureaucrats, and that consequently it is entirely possible for three different Inland Revenue Department officials to give you three different answers to the same question about Cypriot capital gains tax law. This is not an exaggeration; this has actually happened.
Always get professional help when dealing with the Inland Revenue Department
It's also possible to reduce your capital gains tax burden perfectly legally, if you know how to go about it. For instance, if you're selling your home fully furnished, or in the case of one of our previous clients, you happen to have an expensive portable jacuzzi included as part of the sale, make sure these are sold under a separate contract. Any non-permanent fixture, such as portable pools, demountable sheds, in fact, more or less anything which isn't nailed down, is not subject to capital gains tax, always providing of course that you're selling it on a separate agreement from your home.
Always try to cover as many tax-angles as you can when selling your home.
We don't just want to sell you a property.
We make sure you're safe, satisfied and informed.
|
|
|
Additional Information
The Aphrodite Website
Request a Call-Back
Your Saved Properties
The Sun-Loving Lifestyle
The friendly tax-climate is not the only thing bringing people to Aphrodite's Isle. A great many tourists and expatriates also come here for the Cyprus lifestyle. The island's welcoming atmosphere, its rich history, and above all else, the abundant sunshine and the many English-speaking natives, have long drawn visitors to these shores.
After all, let's face it a second; the fact that the vast majority of Cypriots speak English alone makes the Republic a natural choice if you're thinking of moving abroad.
But aside from the fact that moving to Cyprus, and living here, present their own challenges, there's an awful lot so see and do for such a small island.
Find out more...
Disclaimer. Please note that the tax information given
on this website is displayed for guidance purposes only. It does not replace the need for professional advice by a qualified accountant.. E&OE
Terms & Conditions | Privacy Policy |
|
