On 22 February 2021, a law was published in the Cypriot Official Gazette providing for a contribution of 0,4% on the sale of immovable property in Cyprus.
The contribution of 0,4% is payable by the seller of the property and it is imposed on the sale proceeds from:
• the sale of immovable property situated in Cyprus; and
• the sale of shares in a company that owns immovable property situated in Cyprus, provided that the buyer takes control of the company (>50%). For the calculation of the contribution, the value of the shares equals the latest valuation of the immovable property by the Department of Lands and Surveys.
The proceeds from this 0,4% contribution will go toward supporting refugees and owners of inaccessible immovable property situated in occupied North Cyprus.
Please note that relevant Regulations are expected to be issued to clarify certain practical matters which are not detailed in the specific law.
How can we help?
We are at your disposal to discuss the effect of the above provisions to your corporate structure and arragements.