Tax on disposal of immovable property located in Cyprus
20% tax (Capital Gains Tax) is imposed on the gains arising on the disposal of immovable property. Lifetime exemption amounting to €85.340 is deducted from the taxable capital gain on the disposal of private principal residence. (Note: properties sold abroad are not taxed in Cyprus)
Do I need to live in Cyprus to apply for Cyprus Investment Program (CIP)?
No. No need to stay in Cyprus before, during or after applying for CIP.
Can I sell my property under CIP and retain citizenship?
Yes, after 5 years of ownership, assuming you always retain a residential property of at least €500.000.
Do I need to pay all the money for the property under PR in advance?
No, stage payments apply according to construction progress (Note: for the application to start the first €200.000+VAT needs to be paid).
Do I need to pay all the money for the property under CIP in advance?
All money to be sent to Cyprus. The developer will be paid in stages according to construction progress.
| Tax resident with Cypriot Father (Domiciled) | Tax resident with Cypriot Father (Domiciled) | Tax resident with Cypriot Father (Domiciled) | Tax resident with Cypriot Father (Domiciled) | |||
| Income tax | SDC* | GHS** | ||||
| Dividends(CY&abroad) | n/a | 17% | 2,65% | |||
| Interest (CY&abroad) | n/a | 30% | 2,65% | |||
| Rental income (CY&abroad) | Taxable normal rates | 3% on 75% of gross income | 2,65% | |||
| Salary (CY&abroad) | Taxable normal rates | n/a | 2,65% | |||
*Special Defence Contribution
** General Health System
| Tax resident with No Cypriot Father(Non‐domiciled) | Tax resident with No Cypriot Father(Non‐domiciled) | Tax resident with No Cypriot Father(Non‐domiciled) | Tax resident with No Cypriot Father(Non‐domiciled) | |||
| Income tax | SDC | GHS | ||||
| Dividends(CY&abroad) | n/a | n/a | 2,65% | |||
| Interest (CY&abroad) | n/a | n/a | 2,65% | |||
| Rental income (CY&abroad) | Taxable normal rates | n/a | 2,65% | |||
| Salary (CY&abroad) | Taxable normal rates | n/a | 2,65% | |||
| Non‐tax resident | Non‐tax resident | Non‐tax resident | Non‐tax resident | |||
| Income tax | SDC | GHS | ||||
| Dividends | n/a | n/a | n/a | |||
| Interest | n/a | n/a | n/a | |||
| Rental income (CY only) | Taxable normal rates | n/a | 2,65% | |||
| Salary (CY only) | Taxable normal rates | n/a | 2,65% | |||
| Personal Income Tax | Personal Income Tax | Personal Income Tax | ||
| Chargeable income tax year | Tax rate | Accumulated tax | ||
| € | % | € | ||
| First 19.500 | Nil | Nil | ||
| From 19.501 ‐ to 28.000 | 20 | 1.7 | ||
| From 28.001 ‐ to 36.300 | 25 | 3.775 | ||
| From 36.301 ‐ to 60.000 | 30 | 10.885 | ||
| Οver 60.000 | 35 | |||
| Corporation Tax ‐ with Tax resident and Non‐tax residentshareholders | Corporation Tax ‐ with Tax resident and Non‐tax residentshareholders | |
| Tax | 12,5% | |
