Other Taxes

Companies and individuals are subject to capital gains tax, at the rate of 20%, on gains arising from the disposal of:

  1. Immovable property situated in Cyprus
  2. Shares in a company which owns immovable property situated in Cyprus (excluding shares listed on any recognized stock exchange)

Indexation allowance applies on the market value of the immovable property at 1 January 1980 (or on the actual cost of acquisition of and improvements to the property if acquired later)

Life time tax-free capital gains

Individuals are entitled, only once in their life, and not for every disposal, to deduct the capital gain of the following:

Description

Exemption

Disposal of private residence

€85.430 (for each Residence under certain circumstances)

Disposal of agricultural land

€25.629 (only applies to farmers if they can be defined as such according to certain criteria)

Any other disposal of immovable property

€17.086

The aggregated deduction based on the above for any person is restricted to a maximum amount of CY£50,000.

 Exemptions:

  • transfers of shares as a result of company reorganizations
  • transfers on death
  • gain on disposal of shares which are listed on any recognized stock exchange
  • gifts by a family company, of which all :
  • shareholders are members of the same family, to
  • any of its shareholders, provided that the property
  • gifted had itself been acquired by the company by
  • way of gift, and that the property is held by the donee for at least three years
  • gifts between spouses and relatives up to the third degree
  • gifts to family companies provided the shareholders continue to be members of the family for five years after the date of transfer
  • gifts to approved charitable institutions expropriations
  • exchange of properties where the values of the immovable properties being exchanged are equalEstate Duty has been abolished for deaths on or after 1 January 2000. The legal representative of a deceased person is required to submit to the Inland Revenue a statement of assets and liabilities, usually Capital Statements, within six months from the date of death.
  • All outstanding tax obligations have to be settled before the estate of the deceased can be distributed to the beneficiaries

ESTATE DUTY

          Estate duty has been abolished since 1st January 2000.

SOCIAL INSURANCE CONTRIBUTIONS

 

DESCRIPTION

RATE

 

Employer's contribution

7,8%

 

Employee's contribution

7,8%

 

Self-employed individual

13.6%

 

Social cohesion fund

2%

 

Redundancy fund

1,2%

 

Industrial training fund

0,5%

 

Holiday fund

8%

STAMP DUTY

For

Duty

 Letter of credit

 €2

Letters of guarantee

€4

 Customs documents

 €18/€35

Receipts exceeding €4

€0.07

Bills of lading

€4

Bills of exchange (payable at sight on first demand or within 3 days from demand or sight)

€1

 

 

Contracts

 

up to €5.000

 0%

from €5.001 to €170.000

0.15%

≥ €170.001

0.2% (maximum duty €20.000)

Of no specific amount

€35

Tax residence certificate by Inland Revenue Department

€80

Exemptions

  1. Transactions made in the course of a company reorganization
  2. Transactions relating to any property situated outside the Republic or to any matter or thing to be performed or done outside the Republic, irrespective of the place where it is executed

IMMOVABLE PROPERTY TRANSFER FEES 

Transfer fees

Fees are calculated on the market value of the property as estimated by the Land Registry department.

 Market Value €

  Percentage %

  Fees €

Cumulative Fees €

1,71 - 85.430

3

2.563

2.563

85.431 - 170.860

5

4.272

6.835

≥ 170.861

8

 

 

Transfer fees paid on the transfer of property to a family company are refunded in five years provided the company still owns the property and there have not been any changes to its shareholders. On the transfer of immovable property from a family company to its shareholders as well as on transfers by donation between spouses, spouses and children or relatives up to third degree of kindred, transfer fees are calculated on the value of property appearing on the title deed at the following rates:

Transfer to spouse

8%

Transfer to children

4%

Transfer to relative

8%

In the case of free transfers of property, the transfer fees are calculated on the value of the property at values as at 1st January 2013 at the following rates:

 

Transfer from parent to child

Zero

Transfer between spouses

0,1%

Transfer between third degree relatives

0,1%

To trustees

€50

Transfers of immovable property by a company to another company for the purpose of a company re-organisation are exempt from transfer fees. 

Period 02/12/11 to 31/12/2016

Transfer fees for the period 2/12/2011 to 31/12/2016 under conditions on the value of the property as at 1 January 2013:

 0% transfer fees if the transaction is subject to VAT.

50% transfer fees if the transaction is not subject to VAT.

Mortgage registration fees are 1% of the current market value

In the case of company reorganizations, transfers of immovable property are not subject to transfer fees

 

Contact us at:

Yiannis Kyriakides - Chartered Accountants

15 Elision Pedion
6043 Larnaca
Cyprus

Phones: +357-24-662956
Fax: +357-24-662896
E-mail:  info@cyprusauditors.com

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