Tax residents and Companies registered in Cyprus are subject to CGT when disposing their immovable property.
CGT is calculated as the difference (profit) between the sales proceeds and the initial cost of the property when purchased. Particularly, it is imposed at the rate of 20% on gains arising from the disposal of immovable property or the disposal of shares of Companies, the assets of which consist mainly on immovable property.
Capital gains tax as a whole has minimal effect, since the appreciation of values, coupled with the following allowances and inflation, tend to leave little excess.
Individuals are entitled to the following lifetime allowances on Capital Gains Tax:
- The first €17,086.00 of gains arising from the disposal of any property are exempted.
- The first €25,629.02 of gains arising from the disposal of agricultural land by the farmer are exempted (subject to certain conditions).
- The first €85,430.10 of gains arising from the disposal of a house used by the owner for his/her own habitation are exempted (subject to certain conditions).
Part of our services during real estate transactions, is the completion of the application for the CGT assessment. For further guidance, contact us at https://www.gclawfirm.eu/contact-us/