Tax Year
Selling Price
Indexation Rates
Month of acquisition
Month prior to sale
Cost of Acquisition Currency
Cost of Acquisition
Calculated Cost of Acquisition
Indexation Allowance
Capital Gain
Less
Property transfer fees
Immovable property tax
Stamp duty
Licenced Estate agent's commission
Legal Fees
Accepted capital additions and improvements
Interest on loans used to buy the Property, assuming that the interest payments have not been used to offset other tax liabilities; e.g. Income Tax.
Lifetime exemptions
Total Less
Taxable Capital Gain
Capital Gains Tax 20%
Capital Gains Tax is imposed (when the disposal is not subject to income tax) 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 recognised stock exchange.
Exemptions
The following disposals of immovable property are not subject to Capital Gains Tax:
• Transfers arising on death
• Gifts made from parent to child or between husband and wife or between up to thGifts to a company where the company’s shareholders are members of the donor’s family and the shareholders continue to be members of the family for five years after the day of the transfer
• Gifts by a family company to its shareholders, provided such property was originally acquired by the company by way of donation. The property must be kept by the donee for at least three years.
• Gifts to charities and the Government
• Transfers as a result of reorganisations
• Exchange or disposal of immovable property under the Agricultural Land (Consolidation) Laws
• Expropriations
• Exchange of properties, provided that the whole of the gain made on the exchange has been used to acquire the other property. The gain that is not taxable is deducted from the cost of the new property, i.e. the payment of tax is deferred until the disposal of the new propertyird degree relatives.
The following disposals of immovable property are not subject to Capital Gains Tax:
• Transfers arising on death
• Gifts made from parent to child or between husband and wife or between up to thGifts to a company where the company’s shareholders are members of the donor’s family and the shareholders continue to be members of the family for five years after the day of the transfer
• Gifts by a family company to its shareholders, provided such property was originally acquired by the company by way of donation. The property must be kept by the donee for at least three years.
• Gifts to charities and the Government
• Transfers as a result of reorganisations
• Exchange or disposal of immovable property under the Agricultural Land (Consolidation) Laws
• Expropriations
• Exchange of properties, provided that the whole of the gain made on the exchange has been used to acquire the other property. The gain that is not taxable is deducted from the cost of the new property, i.e. the payment of tax is deferred until the disposal of the new propertyird degree relatives.