Cyprus:
Imposition And Collection Of A 0.4% Tax On The Sale Of Immovable Property, In Accordance With The Central Body For The Equal Distribution Of Burdens Law
09 December 2022
Michael Chambers & Co. LLC
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The Tax Department has announced that according to the Central Body for the Equal Distribution of Burdens
amending Law (No.2) of 2022 (N172(I)/2022, (circulated on the
18th of November 2022), the Tax Department will be responsible to
impose and collect a 0.4% tax for the Central Body for the Equal
Distribution of Burdens.
Imposition and Collection of a 0.4% tax on the sale of
immovable Property, in accordance with the Central Body for the
Equal Distribution of Burdens Law
It should be noted that the said tax, which has a retrospective
effect, will apply to all sales completed from
22/2/2021 onwards.
In practice, the 0.4% tax as mentioned above will apply
on:
- The transfers of immovable Property by virtue of sale
and/or
- The sale of shares of a company that is not listed in an
acknowledged Stock Exchange (regardless of percentage holding) and
that directly or indirectly holds immovable Property with a
recorded general estimation value under a General Valuation and
Re-evaluation Survey.
Calculation of the tax
The amount of the Central Body for the Equal Distribution of
Burdens tax will be calculated by and settled to the district Tax
Department.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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