well as the initial purchase price and must be submitted with invoices and Legal and Tax Guidelines on Buying and Selling Property in Cyprus items included in the agreement should not be liable for Capital Gains Tax. Is it taxable? Not sure where to start with how to sell property in Cyprus? In respect of a direct transfer of real estate, the levy applies on the sale amount. Read about the applicable Cyprus property taxes when buying, owning and selling a property in Cyprus. Further allowances are granted for Allowable Expenses: Indexation can be applied to the above expenses as ( Four Vision Development) Selling Property in Cyprus Tax - Esales Overseas Property Agricultural land (if the main occupation is agriculture i.e. The costs and expenses for additions to a residential property in Cyprus are deducted provided proper receipts are kept, as George Coucounis explains. Selling Property in Cyprus is Now Easier Than Ever Tax on selling property in Cyprus. course, illegal. The disposal of a residential property is much more frequent nowadays than it used to be. By entering your email you agree that we may send you emails about our offers and services. Enjoy capital gains tax benefits in Cyprus Blevins Franks Selling Properties in Cyprus Since 2002 - We are Real Estate Specialists in Paphos and Limassol helping you market and sell your property based on our excellent name and marketing strategy to guarantee your profit. Of course, although there are internal circulars assisting the tax officer, the cases are so many and different that it is impossible to regulate them all. There are however municipality/community taxes, to cover other local services and these are based on a property's 1980 value, meaning a budget of just 250-350 a year should cover them, depending on location. Using the above-mentioned example, the tax to be paid can be calculated as follows: Taxable profit 137,394 17.086 = 120,308*20% = 24,062. As of February 2021, a new .4% tax on the sales of immovable property will be imposed to support Greek Cypriot refugees and paid by the seller, rather than the purchaser. Third, you need to be able to provide the buyer with all of the necessary paperwork and documentation. Capital Gains Tax (CGT) Capital gains tax applies on the profit made on the sale of a property at the rate of 20%. Tax on Corporate Transactions in Cyprus: Overview Article 5 (2) of the relevant law provides that no tax is payable for any profit made from the disposal of the primary residential house which is used by its owner for a complete period of five years exclusively for residential purposes and it is situated in a land in extend of up to 1,500 square metres, not exceeding the sum of 50,000 CYP. However, there are perfectly legal ways of reducing your Use of the resident means use by the owner. You can find our transfer fees calculator below: https://cyprusproperties.com.cy/tools/capital-gains-tax-calculator, 2. These deductions are granted once in the lifetime of the individual, until fully exhausted and if an individual claims a combination of them, the maximum deduction granted cannot exceed granted for: Note that the 17,086 is a personal There are a number of taxes and fees that need to be paid, and it is important to be aware of the legal requirements before making a sale. System of Registration 5.