Cyprus has made important changes to its property tax laws. These changes aim to help the property market and the country's economy. The new rules cover selling property, exchanging property, and selling shares. They include higher tax-free amounts and more exemptions. The government wants to make Cyprus more competitive and improve how it collects taxes.
The changes increase the amounts people do not have to pay tax on. For selling property or shares, the tax-free amount is now €30,000. This is a rise from £10,000. Farmers selling land will get €50,000 tax-free. This is much higher than the previous £15,000. The biggest change is for selling a main home. The tax-free amount is now €150,000. This is three times the old amount of £50,000.
The government also offers tax help for property exchanges. This means people can swap properties without paying tax immediately. They will pay tax later when they buy a new home. This should make it easier to move homes. It removes a reason not to exchange properties.
These tax-free amounts can be used during a person's whole life. If you use some for selling shares, less will be left for your main home. For example, using the share exemption reduces the main home exemption from €150,000 to €120,000. The exemptions for main homes will continue until 2030.
Also, the rules for tax relief on loans have changed. The maximum value of a main home for loan restructuring tax relief is now €450,000. This helps people whose homes had loan problems before 2020.
The government says these changes will make business easier. They will also improve the tax system. Cyprus hopes to attract more investment. Property owners will get financial advantages from these new rules.