CAPITAL GAINS TAX
Capital gains tax is paid on gains arising from the sale of immovable property. Tax due is 20% on gains realised, which is calculated as follows:
Proceeds from the sale less cost of property, professional and legal fees, commission, interest paid, inflation allowance and investment allowance (€17,086 on disposal of any property and €85,430 on disposal of residence provided that it has been used as the main residence for at least 5 years prior to the sale). The investment allowance is granted only once, unless it has not been
exhausted at the first sale, in which case any balance would be carried forward. The investment allowance is granted to each owner of the property. For example, if a husband and wife own the property, then the total investment allowance is €34,172.
There is no inheritance tax in Cyprus.