Capital Gains Tax (CGT) is imposed at the rate of 20% on gains from the disposal of immovable property situated in Cyprus or the disposal of share in companies that own Cyprus-situated immovable property when the disposal is not subject to income tax. CGT includes the sale, exchange, lease, gifting, abandoning use of right, granting of right to purchase, and any sums received upon cancellation of disposals.
CGT is also imposed on disposals of shares in companies that indirectly own immovable property situated in Cyprus where at least 50% of the market value of the said shares derives from Cyprus-situated immovable property. Shares listed on any recognized stock exchange are excluded from CGT. In the case of share disposals only that part of the gain relating to the immovable property situated in Cyprus is subject to CGT. The value of the immovable property will be its market value at the time the shares were disposed of.
Shares listed on any recognized stock exchange are excluded from these provisions.
CGT is payable within one month after the date of disposal.