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