Cyprus parties join forces to attempt to ease new VAT charges on land sales

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The Democratic Rally (DISY), the current majority ruling party in Cyprus and socialist party EDEK have come together to draft a legislative proposal which will allow for a blanket exemption of CGT (Capital Gains Tax) until the end of 2018. They hope to offset the impending imposition of a 19% VAT rate charged on land sales for all commercial property transactions. The non- payment waiver of CGT expired on December 31st last year. Under the current system, if someone purchases a plot of land in Cyprus worth €200,000 and sells it for €300,000 they will have to pay €20,000 in Capital Gains Tax (currently charged at 20%).