Capital Gains Tax revisited

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Pantheman
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Re: Capital Gains Tax revisited

Post by Pantheman » 13 Feb 2018 12:11

jackk19 wrote:
13 Feb 2018 10:42
Thanks Pan.
So you have to pay all taxes and fees before you get to registry. If the sale happens at registry then you have to find the tax before your actual sale?
And do you have to have a contract of sale from a solicitor or can scribble something on a bit of paper.

All help appreciated as if I go over I want to have an idea of process plus how long I have to be there.
You need a contract of sale, between the parties.

The buyer pays the revenue stamps.

It gets lodged with the tax office that will tell you what tax you need (after a period of time, it is not instant).

Your agreement with the buyer should be such that he pays that portion of the tax upfront (if we are talking large amounts) to get the clearance certificate.

He pays the balance on the day with a bankers draft at the land registry.

You should use a lawyer to do this for you, it is much easier especially where monies up front are required.

I am not sure about the multiple uses of the 17k allowance, you could just go and ask at the tax office for a more definitive answer, or if you find it in the CAPITAL GAINS TAX LAW, 52/1980.


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Nigel Howarth
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Re: Capital Gains Tax revisited

Post by Nigel Howarth » 13 Feb 2018 13:36

Hi Pan

I've looked through the Capital Gains Tax Law 52/1980 but cannot fine anything about multiple use of the personal allowance.

However, there is something on the Tax Department's website on the subject:

"The capital gain, as determined by the Capital Gains Tax Law, is liable to tax at the rate of 20%. Individuals may, subject to certain conditions, claim the following deductions from the applicable taxable gain: if the disposal relates to a private residence - up to CY£50.000, if the disposal is made by a farmer and it relates to gricultural land - up to CY£15.000, any other disposal - up to CY£10.000. These deductions are granted once in the lifetime of the individual, until fully exhausted and if an individual claims a combination of them, the maximum deduction granted cannot exceed CY£50.000."

(Still in old money!)

Regards,


Nigel Howarth
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jackk19
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Joined: 22 Mar 2011 17:16

Re: Capital Gains Tax revisited

Post by jackk19 » 13 Feb 2018 20:39

I read the same thing and was wondering if it was even up-to-date.
I think I may just ring them.



jackk19
Posts: 34
Joined: 22 Mar 2011 17:16

Re: Capital Gains Tax revisited

Post by jackk19 » 13 Feb 2018 23:23

BTW what is a typical lawyer fee.
And how long does the tax office take to get you a clearance certificate. Days weeks months?



Nigel Howarth
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Re: Capital Gains Tax revisited

Post by Nigel Howarth » 14 Feb 2018 12:16

Hi jackk19

Minimum lawyers fees for out of court work are dictated by the Cyprus Bar Association - see Cyprus Bar Association Minimum Fees Regulations. The legality of these fees is currently being challenged in the EU as they violate the Treaty on the Functioning of the European Union.

As for a clearance certificate, this can take weeks possibly months depending on the Tax Depatment's workload.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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