The House of Representatives passed a law in February 2021 (Law 12(I)/2021) levying a 0.4% tax on sales of immovable property, the proceeds of which will go toward supporting Greek-Cypriot refugees for their inability to possess, have access to, or otherwise gainfully use their land due to the Turkish invasion and occupation of the northern part of the island in 1974.
The funds raised through the levy will go into a fund managed by the Central Agency for the Equal Distribution.
The levy is imposed upon the sale of:
- “Immovable property” as this is defined in the Immovable Property (Tenure, Registration and Valuation) Law Cap.224;
- Shares of a company that is not listed in a recognised Stock Exchange (regardless of percentage holding) and that directly or indirectly holds immovable property with a recorded general estimation value under a General Valuation and Revaluation Survey.
The levy is not applicable in case of:
- A restructuring of a non-performing loan as defined in the Capital Gains Tax Law;
- A company reorganisation as defined in the Income Tax Law;
- A sale filed either with the Department of Land and Surveys or the Cyprus Registrar of Companies as the case may be prior to 22/2/2021.
Following an announcement of the Tax Department which was posted on 21 November 2022 in the official webpage of the Press and Information Office of the Republic of Cyprus, for transactions which have taken place between 22/02/2021 and 18/11/2022, the Director of the Tax Department is willing to afford a reasonable time frame for the settlement of the levy without the imposition of interest or other charges.
