If the property sold has been the first residence of the person for at least 5 years, Eur 85.430 tax relief can be claimed. An exemption of Eur 17.086 applies to the gain of the sale of a property owned for a period of less than 5 years but only one of the two allowances can be claimed and also extensions and additions can also be claimed as deductions. Capital gains tax at the rate of 20% is then charged on the balance after deducting the indexation allowance. If an individual is entitled of more than one exemption the total amount is limited to Eur 85.430. There are exceptions from capital gains tax, at certain circumstances.

Cyprus residents and companies registered in Cyprus are subject to CGT on any disposal of properties situated either in Cyprus or abroad but each owner shares his part of the tax having the benefit of the above exemption.