For every sale of your Cyprus Property, the seller/s must submit to the Cyprus Tax office their capital gains tax forms, even if no profit will be made in order to receive the Tax Report as this is needed at the land Registry in order to be able to transfer immovable property and to complete the sale. Capital Gains tax is always paid by the seller and is always paid before the Tax Report being granted by the tax office.
Any Cyprus Capital Gains is liable to be taxed at the rate of 20%.
Expenses that can be deducted from your Cyprus Property Capital Gain Tax
- Additions and improvements to the Cyprus property (only with official receipts).
- Land Registry transfer fees (specifically for the Cyprus property).
- Stamp duty paid to the Cyprus Government specifically for the Cyprus property
- Estate agent’s commission to Registered estate agents for the specific sale of the Cyprus Property
- Legal Fees for the specific sale of the Cyprus Property.
- Immovable Property Tax.
The below tax deductions are granted once in a lifetime
- Up to €85,430 if the disposal relates to a private residence.
- Up to €25,629 if the disposal is made by a farmer and it relates to agricultural land.
- Up to €17,086 on any other disposal.