Cyprus Capital Gains Tax 2025
Understanding Capital Gains Tax (CGT) in Cyprus , 2025 Update
Selling property in Cyprus in 2025? Capital Gains Tax (CGT) is one of the key issues you need to understand before you sign any contract or complete a transfer at the Land Registry. This guide explains in simple terms how CGT works, how your profit is calculated, and which deductions and exemptions can reduce your tax bill.
1. What is Capital Gains Tax in Cyprus?
CGT is a tax imposed on the profit (gain) from the sale of immovable property located in Cyprus (such as houses, apartments, land, fields, etc.).
Tax Rate:
Capital Gains Tax is currently charged at 20% on the taxable gain.
2. How is the Profit (Gain) Calculated?
The starting point is to work out your net profit from the sale.
Determine the selling price
The price stated in the sale agreement / transfer.
Identify the original purchase price
The amount you paid when you first acquired the property.
Adjust the purchase price for inflation
The original purchase price is indexed using the official inflation (indexation) rates issued by the Cyprus Tax Department.
Profit (before deductions)
Profit = Selling Price – Indexed Purchase Price
Reduce the profit with allowable deductions (see below)
After deducting allowable expenses, you arrive at the taxable gain, on which the 20% CGT is applied.
Search Certificate Tip:
You can confirm the original purchase price and the exact transfer fees you paid by requesting a Search Certificate from the Land Registry.
This document shows:
- The history of the title deed
- The original acquisition price<
- The transfer fees paid at the time of registration
3. Allowable Deductions That Reduce Your Taxable Gain
You are allowed to reduce the taxable gain by deducting certain documented costs. These must be properly supported with invoices and receipts.
a) Legal Fees
Legal fees paid in relation to the sale of the property.
b) Transfer Fee
Land Registry transfer fees paid when the property was first registered in your name.
c) Immovable Improvement Costs
Substantial improvements to the property, such as:
- Major renovations
- Extensions
- Construction of a swimming pool
- Other structural upgrades that increase the property’s value
Routine maintenance or minor repairs are generally not considered improvements.
Important: All improvement costs must be supported by original invoices and receipts.
d) Estate Agent Commissions
Commission paid to licensed estate agents in Cyprus is deductible, provided:
- It relates to the specific sale
- There is a proper invoice
Proper documentation of these expenses can significantly reduce the taxable gain and therefore the CGT payable.
4. Key CGT Exemptions for Sellers in Cyprus
Cyprus law provides a number of exemptions which can reduce or even eliminate CGT in certain cases. Most of these are lifetime exemptions, meaning they can be used only up to specific limits per individual during their lifetime.
a) General Exemption – €17,086
A lifetime exemption of €17,086 on the sale of any immovable property in Cyprus.
b) Private Residence Exemption – Up to €85,430
You may claim up to €85,430 CGT exemption if:
- The property is your private residence; and
- You have lived in it as your main home for at least 5 years.
Evidence typically required:
- Electricity Authority (EAC) bills
Showing consistent usage from the date you acquired the property until today. - Bank statements from a Cyprus bank
Demonstrating your presence and living expenses in Cyprus over the last 5 years.
The Tax Department may also request other supporting documentation to verify that the property has genuinely been used as your primary residence.
c) Transfers Between Close Relatives
Certain transfers between close family members are exempt from CGT, such as:
- Between spouses
- Between parents and children
d) Donations to the State, Local Authorities, or Charities
e) Special Period Exemption (2015–2016 Acquisitions)
Properties acquired between 16 July 2015 and 31 December 2016 are fully exempt from CGT on disposal.
This measure was introduced to encourage property acquisitions during that period.
f) Agricultural Land Exemption – €25,629
A €25,629 exemption is available for the sale of agricultural land by a qualifying farmer, subject to specific conditions.
5. Practical Steps to Minimise CGT Legally
To protect your position and optimise your tax outcome:
Keep all original documents
- Original purchase agreement
- Transfer fee receipts
- Contractor invoices for improvements
- Estate agent commission invoices
Plan ahead before selling
- Check whether the property qualifies as your main residence.
- Review whether you have already used any of your lifetime exemptions.
Request a Land Registry Search Certificate
- To confirm your acquisition details, transfer fees, and other relevant information.
Seek professional advice early
- Before signing a sale agreement or completing at the Land Registry, ask for specialised legal and tax advice so you can structure the transaction in the most tax-efficient way.
6. Why Legal Support Matters
CGT calculations can be complex, especially when:
- There have been multiple improvements over the years
- You own more than one property
- You have already used part of your lifetime exemptions
- The property was acquired by gift or inheritance
A lawyer experienced in Cyprus property law can:
- Review your full history of ownership and use
- Identify all allowable deductions and exemptions
- Liaise with your accountant (if applicable) and the Tax Department
- Help you avoid mistakes that may result in overpaying tax or facing delays
7. Need Help With Capital Gains Tax in Cyprus?
If you are planning to sell a property in Cyprus in 2025, it is strongly recommended to obtain professional advice before you commit to a sale.
Andreas Demetriades & Co LLC advises both local and international clients on:
- Capital Gains Tax (CGT) calculations
- Use of exemptions and deductions
- Land Registry procedures and title transfers
📞 Contact Andreas Demetriades & Co LLC
For tailored advice on CGT and property sales in Cyprus, get in touch with our team and we will be happy to guide you through each step of the process.
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