Profit from the sales of property in Cyprus is subject to Capital Gains Tax (CGT) at the rate of 20%.  CGT also applies to profits from the sale of shares in companies which own property in Cyprus, unless the company is listed on the stock exchange.

Exemptions: in the following examples CGT does not apply:

·         Transfer arising from death of title owner

·         Exchange or sale of property under the Agricultural Land Laws

·         Gifts made between close relatives (up to 3rd degree relatives)

·         Gifts to a company where the company’s shareholders are members of the donor’s family (shareholders should continue to remain family members for not less than 5 years)

·         Gifts by a family company to its shareholders provided such property was originally acquired by the company by way of donation (the recipient must keep the property for not less than 3 years)

·         Gifts to charities and the Government

How CGT is calculated

·         CGT is calculated only on gains made after 1st January 1980.

·         Option 1:

·         Option 2: