Mary Trimithiotou
On the 22nd of February 2021, the official published gazette of the island included an Amendment to the Law regarding the Central Agency for Equal Distribution of Burdens (Creation, Objects, Responsibilities, and Other Related Matters). Specifically, this law relates to the collection of funds, the support of refugees and owners of immovable property within the occupied northern area of the Republic of Cyprus.
The amendment introduces the imposition of a contribution equal to 0.4% (imposed on the value of the sale proceeds) upon the disposal of immovable property within the Republic of Cyprus and will have to be paid by the seller of said property.
In the case of the disposal of shares in a company owning immovable property in Cyprus, the contribution will be applied on the value of the immovable property in the transaction. The above applies only if the buyer will also take control over the said company. The value of the immovable property is taken by the Department of Lands and Surveys based on the latest valuation available by the Department.
* This publication has been prepared as a general guide and for information purposes only. It does not purport to be comprehensive or to render legal advice.
