How much capital gain tax would I pay if I offer for consideration (Αντιπαροχή) my land in Cyprus?

When considering a consideration (αντιπαροχή) of properties/apartments in Cyprus, where the properties/apartments are to be built on the same land you offer in consideration, it's essential to understand how Capital Gain Tax applies to such transactions.

Here's how it works: The land registry's valuation office determines the specific value of the share of land that you are offering in consideration (αντιπαροχή). For instance, if you decide to provide the developer with a 50% share of your land to receive the 3 apartments, and this share is valued at €500,000, then this becomes the assessed value.

To calculate the taxable capital gain, the "cost" of the share you give in consideration is taken into account. In this example, let's assume the "cost" of the share is €100,000. Therefore, the taxable profit would be the difference between the assessed value (€500,000) and the "cost" (€100,000), resulting in a taxable profit of €400,000.

Once the taxable profit is determined, the applicable tax rate of 20% is then applied to this amount. In this case, you would be taxed 20% on the subject profit of €400,000. Please note that you may also use, if relevant, the general capital gains tax exemptions, where applicable.

It's important to remember that tax laws can be complex and subject to changes, so we advise seeking advice from a qualified tax advisor or consulting with the local tax authorities to ensure you have the most up-to-date and accurate information based on your specific situation.