Best Cyprus Capital Gains Tax Calculator

Our Cyprus Capital Gains Tax Calculator is a simple and efficient tool designed to help you estimate the tax you’ll owe when selling property or shares in Cyprus. By entering key details such as:

• Selling Price: The amount you sold the property for.
• Purchase Cost: What you originally paid for the property.
• Additional Costs: Include transfer fees, legal fees, renovation expenses, and agent commissions.
• Tax-Free Allowances: Enter your applicable allowances, like personal, primary residence, or farmer exemptions.

The calculator will instantly provide an estimate of your taxable gain and the capital gains tax (CGT) you need to pay. Whether you’re planning a sale or just exploring your options, this tool helps you make informed financial decisions with ease!

Cyprus Capital Gains Tax Calculator

How Capital Gains Tax (CGT) is Calculated in Cyprus

When you sell property in Cyprus or shares in companies that own such property, Capital Gains Tax (CGT) is charged at 20% on your profit. This applies regardless of whether you’re a Cypriot resident or not. The tax is only applied to profits from property located in Cyprus.

Step 1: Calculating the Taxable Gain

To find the profit that will be taxed:

1. Start with the selling price.
2. Subtract the original purchase price (adjusted for inflation).
3. Deduct eligible expenses like:
   • Renovation or improvement costs (with proper receipts).
   • Transfer fees, legal fees, or commission paid to registered real estate agents.

The market value of the property is used to ensure the calculation is accurate.

Also, if the property was bought after 01/01/1980, the original purchase price is adjusted based on inflation using the Cyprus Consumer Price Index.

Eligible Deductions

Certain costs can reduce the taxable profit, such as:

1. Transfer Fees: Paid to the Land Registry when the property deed is transferred to your name.
2. Renovation Costs: Permanent changes like adding a swimming pool, garage, or central heating (with the correct permissions and proper invoices).
   • Decorative costs like painting or furnishing cannot be deducted.
3. Agent Fees: Commission paid to a registered real estate agent. Fees paid to unregistered agents cannot be deducted.
4. Legal Fees: Paid to your lawyer during the sale process.

Lifetime Tax-Free Allowances

You may qualify for tax-free allowances that reduce the taxable profit:

1. Personal Allowance:
   • Each individual gets a tax-free allowance of €17,086 for the sale of property.
   • If the property is co-owned, each owner gets their own allowance.
2. Primary Residence Allowance:
   • The allowance increases to €85,430 if the property has been your main home for at least 5 years.
   • You must provide proof to the Tax Department.
   • For co-owners, this allowance is split based on ownership shares.
     • Example: If two people co-own the property equally, each gets €42,715.
3. Farmer’s Allowance:
   • Farmers selling agricultural land can claim a tax-free allowance of €25,629.

If you’ve sold property before and haven’t used your full allowance, the unused portion can be carried over to your next sale.

Exemptions from Capital Gains Tax

The following sales or transfers are not taxed:

1. Inheritance: Property transferred due to death.
2. Gifts: Transfers between close relatives (up to third degree) or charitable organizations.
3. Divorce Settlements: Transfers as part of a divorce agreement.
4. Loan Restructuring: Transfers done to restructure a loan (under certain conditions).
5. Corporate Reorganizations: Transfers due to company restructuring.
6. Expropriations: Property taken for public use.
7. Shares on Stock Exchanges: Gains from shares listed on recognized stock exchanges.