On Thursday 27th October 2022, the House of Representatives passed an amended bill regulating the levying of a 0.4% tax on all sales of real estate with the proceeds going to support Greek Cypriot refugees.
Based on the amended legislation, originally passed in February 2021, all transfers and sales of immovable property and/or shares of a company which is not listed on any recognised Stock Exchange and that directly or indirectly owns immovable property, a tax of 0.4% will be paid by the seller of the property or shareholder.
The funds raised will go into a fund managed by the Central Agency for the Equal Distribution of Burdens, the state agency tasked with assisting refugees of the 1974 war.
The original Bill passed in February 2021 did not specify how the taxes would be levied or by which agency, rendering it unenforceable. The bill passed on Thursday corrects that omission, by designating the Tax Department as the responsible agency.
The 0.4% tax will apply retroactively from February 2021 when the original law passed, and if unpaid, the imposed 0.4% tax on all sales of immovable property will become a civil debt to the Cyprus Republic.