Join our mailing list

 

 


 



Join us on Twitter Lowtax Facebook page Join our discussion on LinkedIn Join us on Google+ Delicious Subscribe to the Tax-News RSS Feed
 
 

Cyprus Fact-File Part 2:
Individual Business Domestic Taxation

2.11 Cyprus Individual Business Capital Gains Tax (CGT)

Capital Gains Tax

The rate of Capital Gains Tax (CGT) is 20% on the sale of property located in Cyprus. Profits from the sale of shares owned by a company that owns property in Cyprus are also taxed at 20%. CGT is calculated by deducting the cost of purchasing the property (1st January 1980 is the set date) from the sale price and then adding on the effect of the retail price index to the date of sale. It is allowable to deduct genuine expenses and other costs incurred in selling the property.

There are certain CGT exemptions, including in the case of the following:

  • The death of the property owner;
  • Gifts made from a parent to a child or between spouses;
  • Gifts made to charities or the Cypriot Government;
  • Where the entire capital gain was used to acquire another property, though CGT liability is merely deferred in this case until the new property has been disposed of.

Where the gain relates to the sale of a principal residence, individuals are allowed EUR85,430 as a deduction from CGT liability calculations (with certain restrictions). Where the property is not a principal residence, the exemption is reduced to EUR17,086. This is a once only lifetime allowance.
 

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

 

Fact-File

Part 1: Cyprus Business Formation for Individuals

  1. Cyprus Individual Business Structures
  2. Cyprus Individual Business Registration
  3. Cyprus Individual Business Registration Cost
  4. Cyprus Individual Business Licensing
  5. Cyprus Foreigners in Business
  6. Cyprus Business Organisations
  7. Cyprus Business Accounting
  8. Cyprus Family Business Ownership
  9. Cyprus Venture Capital
  10. Cyprus Individual Business Franchises

Part 2: Cyprus Individual Business Domestic Taxation

  1. Cyprus Individual Business Tax Residence Rules
  2. Cyprus Permanent Establishment
  3. Cyprus Individual Income Tax Rates and Bands
  4. Cyprus Personal Allowances and Business Deductions
  5. Cyprus Husband and Wife Partnerships
  6. Cyprus Partnership Income Taxation
  7. Cyprus Limited Companies Income Taxation
  8. Cyprus Business Profit Retention
  9. Cyprus Business Losses
  10. Cyprus Value Added Tax (VAT)
  11. Cyprus Individual Business Capital Gains Tax (CGT)
  12. Cyprus Individual Business Other Taxes
  13. Cyprus Individual Artists Royalties
  14. Cyprus Individual Business Tax-Efficient Profit Distribution

Part 3: Cyprus Individual Business International Taxation

  1. Cyprus Individual Business International Tax Liability
  2. Cyprus Individual Business Withholding Taxes
  3. Cyprus Double Tax Treaties

Part 4: Cyprus Individual Business Tax-Efficient Structures

  1. Cyprus Individual Business Trusts and Foundations
  2. Cyprus Individual Business for Non-Residents
  3. Cyprus Individual Business use of Offshore
  4. Cyprus Controlled Foreign Corporation (CFC) Rules
  5. Cyprus Personal Estate and Inheritance Planning

Part 5: Cyprus Small Business Incentive Programs

  1. Cyprus Small Business Support Schemes
  2. Cyprus Training Incentive Schemes
  3. Cyprus R&D Tax Credits
  4. Cyprus Individual Business Tax Holidays

Part 6: Cyprus Individual Business Employment Issues

  1. Cyprus Individual Business Employer Responsibilities
  2. Cyprus Employment vs Self-Employment Tax Issues
  3. Cyprus Apprenticeship and Work Experience Schemes
  4. Cyprus Employee Dismissal Rules
  5. Cyprus Business Owner Employment and Invoicing Rules

Part 7: Cyprus Business Owner Welfare and Lifestyle

  1. Cyprus Business Social Security
  2. Cyprus Business Domestic Pensions
  3. Cyprus Offshore and International Pensions
  4. Cyprus Individual Business Healthcare
  5. Cyprus Individual Business Banking Services
  6. Cyprus Education
  7. Cyprus Individual or Business Leaving Cyprus
  8. Cyprus Domestic Real Estate
  9. Cyprus International Real Estate