This tax is is levied only on the disposal of immovable property and the sale of shares in companies owning property in Cyprus.The tax rate is 20% of the profit made on the sale of the property,although some allowances are available.For example if the property is the main residence then the first Cyp 10,000 is exempt.This exemption rises to Cyp 50,000 if the seller has lived in the property for more than five years.Further allowances are granted based on improvements made to property,and inflation but the maximum exemption is Cyp 50,000.

Capital gains tax does not apply to the sale of overseas property for Cyprus residents provided that they were not a resident of Cyprus at the time of purchase.

Cyprus thus has one of the lowest capital gains taxes in Europe.For comparisons in Europe click on to ''tax comparisons''.