Does Cyprus have a capital gains tax?

Cyprus: Cyprus Tax Facts 2021 – Capital Gains Tax. Capital Gains Tax (CGT) is imposed at the rate of 20% on: … Any trading nature profits derived from the sale of shares of companies which directly or indirectly own immovable property in Cyprus provided that such profit is exempt from taxation under income tax.

How is capital gains tax calculated in Cyprus?

Calculation. The gain is calculated by deducting from the sales proceeds the cost of acquisition (adjusted for inflation), any lifetime exemptions (see below) and any allowable expenses directly related to the disposal of the property such as interest on loan, advertising, legal expenses and real estate agent fee.

Do foreigners pay tax in Cyprus?

Non-residents are taxed only on their Cyprus-source income from employment exercised in Cyprus, a permanent establishment in Cyprus, rental of immovable property located in Cyprus, and pensions from employment exercised in Cyprus.

What countries have no capital gains tax?

Countries that do not impose a capital gains tax include Bahrain, Barbados, Belize, Cayman Islands, Isle of Man, Jamaica, New Zealand, Sri Lanka, Singapore, and others.

What taxes do you pay in Cyprus?

Taxation

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Annual income Tax rate
In between €19500 and €28000 20%
In between €28000 and €36300 25%
In between €36300 and €60000 30%
In excess of €60000 35%

How do you calculate capital gains on a house?

Determine your realized amount. This is the sale price minus any commissions or fees paid. Subtract your basis (what you paid) from the realized amount (how much you sold it for) to determine the difference. If you sold your assets for more than you paid, you have a capital gain.

Is Cyprus a tax haven?

Cyprus as a Tax Haven

Cyprus lost tax haven status when the OECD gave the country the same rating as the U.S., Germany, and the U.K. Cyprus’s increase in corporate tax rates to 12.5% was part of the reason it is no longer considered a tax haven.

How much tax do you pay on property in Cyprus?

Property owners are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1% – 2%. Municipality tax is payable to your local municipal authority.

Do you have to pay tax in Cyprus?

Tax on income

For Cyprus residents, income tax is payable on employment, pensions and rental income. The first €19,500 of income is tax-free; beyond that, rates range from 20% to 35% for income over €60,000. If you are employed abroad for over 90 days a year, your entire salary may be free of Cyprus taxes.

How can I reduce my capital gains tax?

Five Ways to Minimize or Avoid Capital Gains Tax

  1. Invest for the long term. …
  2. Take advantage of tax-deferred retirement plans. …
  3. Use capital losses to offset gains. …
  4. Watch your holding periods. …
  5. Pick your cost basis.
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Sunny Cyprus