is there tax on selling an apartment
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is there tax on selling an apartment
I have sold my apartment in Larnaca and have been told I will have to pay 20% tax on the price of the property.
Re: is there tax on selling an apartment
Twilight40 wrote: ↑27 Sep 2017 21:05 I have sold my apartment in Larnaca and have been told I will have to pay 20% tax on the price of the property.
No, this is not true.
if you make a profit after all of your allowances, you pay 20% of that, NOT the price.
HTH
Pan
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FSB Properties Ltd
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Member of ETEK Registration No. A201999
https://www.fsbproperties.com
Re: is there tax on selling an apartment
I always had a problem with CGT. Is it adjusted for inflation?
say I buy a house today for 100K and in 20 years time it is worth 200K, the gain could just be due to inflation and 200K in 20 years is just like 100K in today's money!
do one still has to pay tax on this phantom 100K "gain"?
say I buy a house today for 100K and in 20 years time it is worth 200K, the gain could just be due to inflation and 200K in 20 years is just like 100K in today's money!
do one still has to pay tax on this phantom 100K "gain"?
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Re: is there tax on selling an apartment
Yes CGT is adjusted for inflation. Here's an example:
You purchase a property for €100,000 and sell it for €200,000 some years later. Over the period inflation has risen by 25%.
The purchase price is adjusted for inflation and so becomes €125,000.
Your CGT liability is then calculated on the difference between €125,000 and €200,000 - i.e. €75,000.
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Nigel Howarth
Independent information & advice for Cyprus property buyers
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Re: is there tax on selling an apartment
that makes sense but even in the UK they don't take inflation into account apparently!
https://www.lemonfool.co.uk/viewtopic.php?f=13&t=7341
https://www.lemonfool.co.uk/viewtopic.php?f=13&t=7341
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Re: is there tax on selling an apartment
Hi umeca74
The link you provided refers to Capital Gains Tax on a Buy to Let property in the UK. This has nothing to do with the Capital Gains Tax you pay when you sell a property in Cyprus.
Capital Gains Tax is paid in the country in which the capital gain is made. As you property is in Larnaca you will pay CGT to the Tax Department in Cyprus and it will be calculated according to the laws of Cyprus (not the laws of the UK.)
Regards,
The link you provided refers to Capital Gains Tax on a Buy to Let property in the UK. This has nothing to do with the Capital Gains Tax you pay when you sell a property in Cyprus.
Capital Gains Tax is paid in the country in which the capital gain is made. As you property is in Larnaca you will pay CGT to the Tax Department in Cyprus and it will be calculated according to the laws of Cyprus (not the laws of the UK.)
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Re: is there tax on selling an apartment
yes, but the link says that in UK CGT is not adjusted for inflation. Anyway, I'll take your word for it that in cyprus things are more reasonable :)
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Re: is there tax on selling an apartment
Hi umeca
PwC publishes an annual guide to taxation. The latest is Tax Facts & Figures 2017 - Cyprus. Capital Gains Tax is discussed on pages 32 - 34.
Regards,
PwC publishes an annual guide to taxation. The latest is Tax Facts & Figures 2017 - Cyprus. Capital Gains Tax is discussed on pages 32 - 34.
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news