Nicosia, December 1st, 2022,
Cyprus law provides for a 0,4% levy on the sale of immovable property as well as on the sale of shares in a company owning immovable property in the Republic of Cyprus as long as the buyer gets the ownership of the company.
The Tax Commissioner in charge delivers a payment certificate once the transfer of shares (Form TD 402/2002) / transfer of immovable property (Form TD 401/2022) is completed. He/she also retains all powers conferred by the Capital Gains Tax law and Assessment & Collection of Taxes law, such as the imposition of interests and/or penalty fees.
The levy, however, does not apply for the following:
- Loan restructurings and company reorganisations.
- Where a sale agreement has been submitted to the Land Registry.
- Where a form for the transfer of shares has been submitted to the Registrar of Companies, with transfer date before the 22.2.2021.
Furthermore, with regards to sale of property falling under the period 22.2.2021 to 18.11.2022, interest and penalties should not be imposed as the time span for paying the levy will be expanded.