Updated
GL-C-04
Glossary · Cyprus PR
Cyprus capital gains tax - 20% of the gain
A tax on the gain from selling property located in Cyprus
01 / In 30 seconds
The short answer
- What it is
- A tax on the gain from selling property located in Cyprus
- Rate
- 20% of the gain on sale
- Reliefs
- Lifetime: €150,000 on selling a main home or €30,000 on selling other property
- When it is paid
- Before transfer: the seller obtains tax clearance form N.313
02 / In plain words
What Cyprus capital gains tax means
Capital gains tax (in Greek Φόρος Κεφαλαιουχικών Κερδών) is paid in Cyprus when you sell property located on the island. The rate is 20% of the gain on sale.
Every individual has a lifetime relief: €150,000 of gain on selling a main home or €30,000 on selling other property. It is an overall lifetime limit, not a discount on every sale.
Before the transfer, the seller brings tax clearance form N.313 to the Department of Lands and Surveys - proof that taxes on the property, including capital gains tax, are paid. For PR holders this matters when replacing a property: the investment must be kept, and the tax is a separate cost.
A simple example
A client sells a flat that was not their main home with a gain of €40,000. The €30,000 relief covers part of it, so 20% tax on €10,000 is €2,000.
When capital gains tax arises
- Selling a flat in Cyprus
- Replacing the property for PR
- Exiting the investment
- Working out the return on a purchase
- Buying resale: the seller N.313 form
03 / What it covers
What to know
Rate
- 20%
- Of the gain on sale
- Property in Cyprus
Lifetime reliefs
- €150,000 - main home
- €30,000 - other property
- Overall limit, not per sale
Documents
- Tax clearance N.313
- Purchase contract
- Payment receipts
Not in Cyprus
- Property tax
- Inheritance tax
- Stamp duty
04 / How it works
How the tax is paid on a sale
Gain calculation
Lawyer and accountant work out the gain and relief.
Declaration
The sale is declared to the Tax Department.
Payment and N.313
Tax paid, the Tax Department issues the form.
Transfer
The N.313 form goes to the Lands Department.
Done
Property transferred, tax settled.
05 / Key facts
What matters
01Rate
20%
Of the gain on selling property in Cyprus.
02Main home
€150,000
Lifetime relief on selling a main home.
03Other property
€30,000
Lifetime relief on selling other property.
04Form N.313
Before transfer
Confirms that taxes on the property are paid. Without it the transfer will not go through.
Common mistakes
Leaving the tax out of your exit plan
20% of the gain is a noticeable sum. Work it out before buying.
Applying the relief to every sale
€150,000 and €30,000 are lifetime limits.
Buying resale without checking N.313
The seller must settle the taxes, or the transfer will be delayed.
06 / Expert advice
How to prepare in advance
Keep the purchase contract, payment receipts and property invoices: they are used to work out the gain when you sell.
What we do for you. We work out capital gains tax before you buy and when you exit, check the seller N.313 form and handle the sale with the lawyer.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
20% of the gain on selling property in Cyprus.
Lifetime: €150,000 for a main home or €30,000 for other property.
No, it is an overall lifetime limit.
Tax Department confirmation that taxes on the property are paid. Needed for the transfer.
No, it was abolished from 2017.
No.
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