As a rule, Capital Gains Tax is imposed at 20% on all gains
(regardless of the tax residence of the owner/seller) arising
from:
- Direct Disposals i.e. Disposal of
immovable property situated in Cyprus;
- Indirect Disposals i.e. Disposals of
shares of companies holding immovable property situated in Cyprus
(charged on the appropriate portion of the gain).
NOTE: Disposals of shares of companies listed on a recognized
Stock Exchange are exempted.
Calculation
The gain is calculated by deducting from the sales proceeds the
cost of acquisition (adjusted for inflation), any lifetime
exemptions (see below) and any allowable expenses directly related
to the disposal of the property such as interest on loan,
advertising, legal expenses and real estate agent fee.
