MT Audit would like to inform of the amendments to the provisions of the Law 141/1989, effective as of February 22, 2021.

According to the amendment, a contribution of 0,4% is imposed on the sale of immovable property in the Republic. The proceeds will go toward supporting refugees and owners of inaccessible immovable property, to compensate for the inability to possess or use the land in the occupied north.

The contribution of 0,4% is payable by the seller of the property and is imposed on the sale proceeds from:

  • the sale of immovable property located in the areas controlled by the Republic; and
  • the sale of shares in a company that owns such immovable property, provided that the buyer takes control of the company. For the calculation of the contribution, the value of the shares equals the latest valuation of the immovable property by the Department of Lands and Surveys.

Sellers of Cyprus immovable property may wish to take into consideration the effect of the above amendments when considering the sale of property, while we shall do our best to share more details after the issue of relevant Regulations, which are expected to clarify some practical issues and possible exemptions.

As always, MT Audit remains at your disposal for any additional information or clarifications.