Imposition of 0.4% Tax on Cyprus immovable property sales and shares

On 27 October 2022, the law regulating the levying of a 0.4% tax on all sales of immovable property with the proceeds going to financially support Greek Cypriot refugees has been published in the Official Gazette by that amending the provisions of the Central Agency for Equal Distribution of Burdens (Creation, Objects, Responsibilities, and Other Related Matters) Law.

In accordance with the amended legislation, initially passed in February 2021, all transfers and sales of immovable property and/or shares of a company which are not listed on any recognized Stock Exchange and that directly or indirectly owns immovable property, a tax of 0.4% will be paid by the seller of the property or shareholder.

However, in the practical way, the medical requirements are applicable from the date of the publication of the additional documents on the official website (from the middle of November).

Importantly to note, the Tax Commissioner announced that it will allow the reasonable period of time to settle the relevant obligations without imposing any monetary penalties.

Additional details and information will be issued shortly by the Tax Commissioner.