Immovable Property Tax:
The registered owner of the property is liable for this annual tax which is based on the value of the property as at 1st January 1980.
Property Value (as at 1/1/1980) €
| - € 40,000*||0.6|
|€ 40,001 - € 120,000||0.8|
|€ 120,001 - € 170,000||0.9|
|€ 170,001 - € 300,000||1.1|
|€ 300,001 - € 500,000||1.3|
|€ 500,001 - € 800,000||1.5|
|€ 800,001 - € 3.00,000||1.7|
|More than € 3.000.000||1.9|
*Owners of properties whose total 1980 value is no more than €12,500 are exempted. Owners of properties whose 1980 value exceeds €12,500 will have to pay tax on their total 1980 value and not benefit from the €12,500 exemption. The taxable threshold pertains to the aggregate value of properties registered under a person. Exemptions i.e.: schools, embassies, agriculture land, public hospital etc.
Capital Gains Tax:
Capital Gains Tax is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property, excluding shares listed on any recognised stock exchange.
The following disposals of immovable property are not subject to Capital Gains Tax:
- Transfers arising on death
- Gifts made from parent to child or between husband and wife or between up to third degree relatives
- Gifts to a company where the company’s shareholders are members of the donor’s family
- Gifts by a family company to its shareholders
- Gifts to charities and the Government
- Exchange of properties
Liability is confined to gains accruing since 1 January 1980. The costs that are deducted from gross proceeds on the disposal of immovable property are its market value at 1 January 1980, or the costs of acquisition and improvements of the property, if made after 1 January 1980, as adjusted for inflation up to the date of disposal on the basis of the consumer price index in Cyprus. Expenses that are related to the acquisition and disposal of immovable property are also deducted, subject to certain conditions e.g. transfer fees, legal expenses etc.
Individuals can deduct from the capital gain the following:
- Disposal of private residence (subject to certain conditions) 85.430
- Disposal of agricultural land by a farmer 25.629
- Any other disposal 17.086
The above exemptions are lifetime exemptions subject to an overall lifetime maximum of €85.460