Capital Gains Tax (CGT) Updates

The taxable gain is calculated by taking the sale price and subtracting the original purchase price (adjusted for inflation) and allowable deductions. The remaining profit is reduced by substantially increased lifetime exemptions: 

• Primary Residence: Up to €150,000 tax-free (previously €85,430) if the owner resides in it continuously for at least five years.
• Agricultural Land: Up to €50,000 tax-free (previously €25,629).
• General Exemption: Up to €30,000 tax-free (previously €17,086) for the disposal of any other property.

Allowable Deductions & Capital Allowances

Sellers can significantly reduce their taxable profit by submitting proper invoices for allowable expenses. Deductible items include: 

• Capital Improvements: Costs for additions, renovations, and structural upgrades.
• Transaction Costs: Transfer fees paid during acquisition, licensed estate agent commissions, and legal fees.
• Inflation Adjustment: The original purchase price is indexed for inflation using the official Consumer Price Index (CPI), ensuring you are only taxed on the real increase in property value. [

Important Transaction & Holding Updates

• Stamp Duty: Abolished entirely for all sale and lease contracts.
• Property Transfer Fees: Paid by the buyer, but resale properties attract a 50% statutory discount on the tiered rates.
• Property-Rich Companies: Shares now fall under CGT if at least 20% (down from 50%) of the company's value derives from immovable property in Cyprus.
• Equal Burdens Levy: A 0.4% levy is charged on the sale or transfer value of immovable property.