The Republic of Cyprus has once again kept its promise to
international investors and introduced on the 9th of July 2015
amendments to its tax legislation making the jurisdiction as
attractive as never before. The purpose of these amendments is to
clearly establish Cyprus as the leading tax jurisdiction in the
European Union, attract even further investment in Cyprus whilst at
the same time harmonising its domestic laws with EU
obligations.
In a nutshell the new tax legislation is as follows:
Law 59(I)/2015 on Capital Gains Tax
100% exemption from capital gains tax in Cyprus for the disposal
of real estate located in Cyprus provided that the said real estate
has been purchased within the period of the coming into effect of
this law and the 31st December 2016. This amendment is very
important as the prior applicable regime imposed a 20% capital
gains tax on the seller of real estate located in Cyprus.
