Capital Gains Tax Calculator
Selling Price
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Indexation Rates
Month of acquisition
Month prior to sale
Cost of Acquisition Currency
Cost of Acquisition
Cost of Acquisition :
if you inherited your land and the previous owner purchased it before 01/01/1980, then you must enter the price as seen on your Certificate of Title. Alternatively, if it was purchased by the previous owner after 01/01/1980, enter the price they paid for it.
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Calculated Cost of Acquisition
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Indexation Allowance
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Capital Gain
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Less
Property transfer fees
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Immovable property tax
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Stamp duty
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Licenced Estate agent's commission
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Legal Fees
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Accepted capital additions and improvements
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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.
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Lifetime exemptions
Lifetime Exemptions :
Individuals can deduct from the capital gain the following:
-Disposal of private residence (subject to certain conditions) €85.430
-Disposal of agricultural land by a farmer €25.629
-Any other disposal €17.086
These deductions are granted once in the lifetime of the individual, until fully exhausted and if an individual claims a combination of them, the maximum deduction granted cannot exceed €85.430. Note that the €17,086 is a personal allowance. So if the property is owned in joint names, e.g. husband & wife, each owner is entitled to the exemption of €17,086.
-Disposal of private residence (subject to certain conditions) €85.430
-Disposal of agricultural land by a farmer €25.629
-Any other disposal €17.086
These deductions are granted once in the lifetime of the individual, until fully exhausted and if an individual claims a combination of them, the maximum deduction granted cannot exceed €85.430. Note that the €17,086 is a personal allowance. So if the property is owned in joint names, e.g. husband & wife, each owner is entitled to the exemption of €17,086.
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Total Less
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Taxable Capital Gain
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Capital Gains Tax 20%
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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.