Areas of Practice

Other Taxes

Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is imposed at the rate of 20 percent on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own immovable property in Cyprus and not listed in any recognised Stock Exchange.


Determination of capital gain
The capital gain is calculated after deducting from the selling price the initial acquisition cost or the market value as at 1 January 1980 whichever is the higher, inflated by the retail price index in Cyprus.


The following disposals of immovable property are not subject to CGT:

  • - transfer arising on death
  • - gift made from parent to child or between husband and wife or

between up to third degree relatives

  • - gift to a company where the company’s shareholders are

members of the donor’s family and the shareholders continue to be members of the family for five years after the day of the transfer

  • - gift by a family company to its shareholders, provided such

property was originally acquired by the company by way of donation. The property must be kept by the donee for at least three years

  • - gift to charities and the Government
  • - transfer as a result of reorganisations
  • - exchange or disposal of immovable property under the Agricultural

Land (Consolidation) Laws

  • - expropriations
  • - exchange of property where the market value of the property

exchanged is equal


The following deductions exist for individuals:  €
sale of own residence (under certain conditions) 85.430
sale of agricultural land by a farmer 25.629
other sales 1 7.086
The above exemptions are granted only once for each taxpayer and not for each sale. Any person claiming a combination of the above is allowed a maximum of €85.430.


Estate Duty
Estate Duty was abolished in 2000. The executor/administrator of the estate of the deceased is required by the Deceased Persons Estate Law to submit to the Tax Authorities a statement of assets and liabilities of the deceased within six months from the date of death.


Immovable Property Tax
Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to the immovable property owned by the taxpayer on 1 January of each year. The immovable property tax is payable on 30 September of each year.


The immovable property tax is imposed on both individuals and legal persons.


Tax rates


Property value € 

Rate ‰Accumulated tax €

Up to 170.860


1 70.861-427.15 0


427.151 -854.300

3 .52.13 6

Over 854.300



Transfer Fees


Transfer fees are levied by the Department of Land and Surveys for transfers of immovable property.


Rates applying from 19 March 1999:

Property value €                     

Rate %  Accumulated fees €

Up to 85.430


85.431 -170.860


Over 170.860



In the case of property transferred to a family company, transfer fees are refundable after five years if the property remains with the company and the shareholders remain the same.


In the case of company reorganisations transfers of immovable property are not subject to transfer fees by the Department of Land and Surveys.


In case of property transferred from a family company to one of the two spouses or their children or to a relative up to third degree relation, the ransfer fees are calculated on the value of the property on the title deed, as follows:

transfer to a spouse

8 percent

transfer to a child

4 percent

transfer to a relative up to third degree

8 percent


The following rates are applicable in the case of free transfers:

parents to children

4 percent

between spouses

8 percent

between relatives up to third degree

8 percent

to trustees



Stamp Duty

Nature of document  

Receipt - for sums of €3.40 to €34.20

3 cents

Receipt - for sums over €34.20

7 cents


5 cents

Letter of credit


Letter of guarantee


Bill of exchange

85 cents

Contract - up to €170.860

€2.56 per thousand

- over €170.860

€3.42 per thousand

- without fixed sum


Customer declaration document

€17 - €34.2

Bill of lading