How much capital gain tax would I pay if I exchange my property in Cyprus?

When engaging in a property exchange in Cyprus, you may be liable to pay Capital Gain Tax on the difference between the values of the properties involved. This tax is only applicable to the property that holds a higher value.

Let's illustrate this with an example: Imagine you are exchanging a plot of land valued at €650,000 for three apartments (situated in different plot) with a combined value of €500,000. In this case, you, as the owner of the land, would be required to pay 20% on the difference amount, which is €150,000.

It's essential to note that if both exchanged properties have equal values (according to the land registry specific valuation), then no Capital Gain Tax is payable. The rationale behind this tax approach is to consider that the party with the higher value property has already compensated, additionally, for the difference in value during the exchange. Thus, the "profit" from this exchange, which amounts to €150,000, is subject to taxation. Please note that you may also use, if relevant, the general capital gains tax exemptions, where applicable.

Please keep in mind that tax regulations and rates may be subject to change, so we recommend consulting with a qualified tax advisor or the local tax authorities for the most up-to-date information specific to your situation.