CAPITAL GAINS - CALCULATOR 2021

 
 
 
 
 
 
 
 
 
 
 
 
 
The calculation of Capital Gains Tax is an approximate indication for information purposes. It does not constitute professional advice
 

Cyprus Capital Gains Tax

Capital Gains Tax (CGTax) is imposed at the rate of 20% on:

  • Gains from the disposal of immovable property situated in the Republic
  • Gains from the disposal of shares of companies not listed on a recognised stock exchange which own immovable property situated in the Republic
  • Gains from the disposal of shares of companies which indirectly own immovable property situated in the Republic and derive at least 50% of their market value from such immovable property

Deductions

The following are deducted from the sale proceeds:

  • The market Value of the immovable property as at 1 January 1980 or the cost of acquisition if later, as adjusted for inflation (Indexed Cost of Acquisition).
  • The cost of any additions after 1 January 1980, or after the date of acquisition if later, as adjusted for inflation (Indexed Cost of Improvements).
  • Expenditure incurred wholly and exclusively for the production of the gain (e.g. transfer fees, licensed estate agency fees, legal fees, interest on loan, etc.)
  • Individuals are entitled to deduct from the capital gain the following lifetime allowances, until fully exhausted:
  • €85.430 - Disposal of principal private residence, which is owned for 5 years and the land does not exceed 1.500squ.m.
  • €25.629 - Disposal of agricultural land by a farmer
  • €17.086 - Any other disposals

 

Indexed cost is calculated as:

Indexed cost of acquisition = Cost of acquisition * Cost Inflation Index (CII) of the year in which the asset is transferred / Cost inflation index (CII) of the year in which asset was first held by the seller or 1980 whichever is later.

Indexed cost of improvement = Cost of improvement * Cost inflation index of the year in which the asset is transferred / Cost inflation index of the year in which improvement took place

 

Exceptions

The following disposals are exempt from capital gains tax:

  • Transfers arising on death
  • Subject to conditions, land as well as land with buildings, acquired at Market Value (excluding exchanges, donations, and foreclosures) from unrelated parties in the period 16 July 2015 up to 31 December 2016 will be exempt from CGT upon their future disposal.
  • Gifts between spouses, parents and children or up to third degree relatives
  • Gifts to a company whose shareholders are members of the donor’s family and continue to be members of the family for 5 years after the day of the gift
  • Gifts by a family company to its shareholders, provided such property was originally acquired by the company by way of gift. However the shareholders must keep the property for at least 3 years, otherwise the shareholder will not be entitled to the lifetime allowances listed above.
  • Gifts to a charitable organisation or to the Republic or to a political party
  • Exchange or disposal under the Agricultural Land (Consolidation) Laws
  • Exchange, provided the gain is used for the acquisition of new property. The gain that is not taxable is deducted from the cost of the new property, i.e. the payment of tax is deferred until the disposal of the new property
  • Expropriations (Compulsory acquisitions)
  • Transfers as a result of company reorganisation
  • Transfer of property of a missing person under administration
  • Transfer of ownership between spouses that their marriage has been dissolved by a court order or in case of transfer of ownership between the same persons for the purpose of settling their property according to the Settlement of Property Relationships between Spouses Law
  • Transfer under a qualifying loan Restructuring (subject to conditions)
© 2021 All Rights Reserved
Design & developed by Searcheverythings.com
For Cyprus properties we advertise with Zyprus.com