CAPITAL GAINS TAX
The tax rate is 20%. The tax is charged after adjustment for the indexation of income from the sale of real estate in Cyprus or a share in companies that own Cyprus real estate. At the same time at least 50% of the value of the shares sold must be derived from real estate located in Cyprus.
The law provides a number of exemptions for capital gains taxation. Real estate is not taxed in the following cases when:
Selling land acquired in the period from July 16, 2015 to December 31, 2016
Transferring property in connection with the death of the owner
Donating property to relatives up to the third degree of relationship
Donating property to companies whose shareholders are members of the donor’s family