Best answer for: how much is capital gains tax in Cyprus?

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The capital gains tax in Cyprus is 20%.

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Capital gains tax is a tax levied on profits from the sale of assets such as real estate, stocks, and bonds. In Cyprus, the capital gains tax is set at 20%, according to the Cyprus Tax Department. This tax is imposed on the sale of immovable property and any immovable property situated outside of Cyprus sold by a resident of Cyprus.

In a quote by the famous investor Warren Buffett, he states that “taxes are a necessary part of society. They’re the price we pay for the civilized society.” This sentiment reflects the importance of taxes in maintaining a fair and functioning society.

Here are some interesting facts related to capital gains tax:

Cyprus has a relatively low capital gains tax rate compared to other countries. For example, the United States has a maximum capital gains tax rate of 37%.
The law in Cyprus allows for certain exemptions to the capital gains tax. For example, selling a primary residence is exempt from the tax.
The capital gains tax rate in Cyprus was increased from 15% to 20% in 2019 as part of a wider package of tax reforms.
The OECD (Organisation for Economic Cooperation and Development) recommends that countries have a capital gains tax to prevent tax evasion and ensure a fair tax system.
A table summarizing Capital Gains Tax rates in some other countries:

Country Capital Gains Tax Rate

United States 0% – 37%
Japan 15% – 30%
United Kingdom 10% – 28%
Germany 0% – 45%
Australia 0% – 45%

Overall, capital gains tax is an important part of a fair and effective tax system. While rates differ across countries, it is important to consider their role in ensuring a society that functions for the benefit of all.

Watch a video on the subject

This video is about the capital gains tax in Cyprus, which is imposed at a rate of 20% on gains from the disposal of immovable property in the country, including shares of companies not listed on a recognized stock exchange that own immovable property as well as those that indirectly own it. However, there are certain exemptions to this tax, such as transfers upon death and gifts between family members. Deductions can also be made from the gains, depending on the type of disposal.

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20%The capital gains tax is imposed on a 20% fixed rate on profit made from the disposal of immovable property in Cyprus. By entering details about the selling price, cost of purchase, other costs, and your potential allowances you can approximately estimate how much capital gains tax is applicable to you.

Capital gains tax is levied at a fixed rate of 20% on both individuals and companies. Capital gain tax is calculated based on gains arising from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies, which own such immovable property, excluding shares listed on any recognised stock exchange.

Capital Gains Tax (CGT) The rate of CGT is 20% on profits acquired from the sale of immovable property located in Cyprus, after provision for an increase indexation payment. The capital gains acquired from the sale of immovable property located outside Cyprus are free from CGT.

Capital Gains Tax is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property, excluding shares listed on any recognised stock exchange.

The capital gains tax is imposed on a 20% fixed rate on profit made from the disposal of immovable property in Cyprus. By entering details about the selling price, cost of purchase, other costs, and your potential allowances you can approximately estimate how much capital gains tax is applicable to you.

Capital Gains Tax (‘CGT’) is a specific tax people pay upon sale (or transfer) of immovable property (house, flat, land, etc) situated in Cyprus. You only have to pay CGT if the sale results to a profit. Th at profit is taxed at 20%.

Capital Gains Tax (CGT) is imposed at the rate of 20% on: … Any trading nature profits derived from the sale of shares of companies which directly or indirectly own immovable property in Cyprus provided that such profit is exempt from taxation under income tax.

More interesting questions on the issue

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Are capital gains taxed in Cyprus?

Answer: Capital gains, other than those relating to Cyprus-located immovable property, are generally not taxed in Cyprus. See Capital gains tax in the Other taxes section for more information.

How do I avoid capital gains tax in Cyprus?

Response to this: Exemptions. The following disposals of immovable property are exempt from capital gains tax: Transfer upon death. Gifts between spouses, parents and children and relatives up to third degree of kindred.

Is there capital gains tax on selling property in Cyprus?

Capital Gains Tax (CGT)
Capital gains tax applies on the profit made on the sale of a property at the rate of 20%. There is one, lifetime, allowance of the first €17,086 gains which are exempt for each seller, until this allowance is used up.

What is the capital gains tax in Cyprus 2023?

Answer: 2.7 Capital Gains Taxation
The applicable rate is 20% and is applied on gains from the disposal of immovable property or gains from the disposal of shares that directly or indirectly own immovable property situated in Cyprus.

What is capital gains tax in Cyprus?

The response is: Cyprus Capital gains tax is levied on gains from the disposal of Cyprus property (immovable) at the rate of 20%, as well as gains from the disposal of shares in Cyprus companies owning immovable property and are not listed in any recognised stock exchange and rights arising from a sales agreement of immovable property situated in Cyprus.

Is the sale of immovable property taxed in Cyprus?

In reply to that: Any trading nature profits derived from the sale of shares of companies which directly or indirectly own immovable property in Cyprus provided that such profit is exempt from taxation under income tax. No CGT is imposed on the subsequent disposal of properties which are acquired in the period from 17 July 2015 up to 31 December 2016.

Do I have to pay tax in North Cyprus?

As a tax resident of North Cyprus, you must pay income tax on all the income that derives from your North Cyprus activities and on all the money you bring into North Cyprus from abroad. Any earnings made in the TRNC, such as income from property letting or bank interest, are taxable.

What is capital gains tax in Cyprus?

Response will be: Cyprus Capital gains tax is levied on gains from the disposal of Cyprus property (immovable) at the rate of 20%, as well as gains from the disposal of shares in Cyprus companies owning immovable property and are not listed in any recognised stock exchange and rights arising from a sales agreement of immovable property situated in Cyprus.

Is the sale of immovable property taxed in Cyprus?

The reply will be: Any trading nature profits derived from the sale of shares of companies which directly or indirectly own immovable property in Cyprus provided that such profit is exempt from taxation under income tax. No CGT is imposed on the subsequent disposal of properties which are acquired in the period from 17 July 2015 up to 31 December 2016.

Do I have to pay tax in North Cyprus?

Are dividends taxed in Cyprus?

Resident corporations are subject to tax on their worldwide income. However, foreign PE income ( see below ), as well as most dividend and capital gains income from abroad ( see Dividend income above ), may be exempt from taxation in Cyprus. Profits from a PE abroad are exempt from CIT, subject to anti-avoidance rules set out below.