By a recent amendment of the Capital Gains Tax Law, Cyprus has abolished the payment of any Capital Gains Tax for immovable properties purchased until the end of 2016.
According to Article 5 (special provision) of the Law 117 (1)/2015:
1. Disposal of property which constitutes immovable property i.e land, land with a building site or land with buildings, is exempt from the payment of Capital Gains Tax, provided:
- The immovable property was obtained within the period which is defined as being from the date on which the Capital Gains Tax (Amendment) (Art.2) of 2015 came into force until 31 December 2016.
- It was obtained by purchase or an agreement of purchase, at its market value from a non connected person, but not by an exchange of property or as a donation.
2. The disposal of the immovable property is exempt from Capital Gains Tax regardless of whether the disposal has taken place within the above period or at any time after the termination of the aforesaid period.
3. There is no exception from the obligation of submission and tax payment, according to the provision of the above Law, in relation to the disposal of property which was obtained in the framework of sale of property pursuant to the provision of Part VI and of Part VIA of the transfer and Mortgage of Immovable Property Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.