Selling a propert and tax due

Questions about selling property
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brendac
Posts: 3
Joined: 12 Oct 2014 19:59

Selling a propert and tax due

Post by brendac » 20 Oct 2014 13:05

We have had a property in Cyprus since 1992, solely for our own use for holidays two or three times a year. We are now retired and feel we may have to consider selling, we have possible interest from a UK buyer.
We bought for 34,000 Cyprus pounds and may get 90,000euros, the house is in joint names.
What would our Capital Gains position be, we don't think we are liable to immovable property tax but how would we find this out please?
Your help would be appreciated please?
Brendac



Nigel Howarth
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Re: Selling a propert and tax due

Post by Nigel Howarth » 20 Oct 2014 15:09

Hi Brendac and welcome to the forum.

Regarding your possible liability for Immovable Property Tax, you need to look at the 1980 value shown on the Title Deed to your property.As you purchased in joint names you will not be liable for IPT if the 1980 is €25,000 or less.

The CYP 34,000 equates to €58,092.45 (let's call it €58,000 - it makes the maths easier) - your CGT will be calculate at 20% on the profit arising from the sale €90,000 - €58,000 = €32,000 (€16,000 each).

As there is a basic personal allowance of €17,086, neither of you will be liable for Capital Gains Tax.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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brendac
Posts: 3
Joined: 12 Oct 2014 19:59

Re: Selling a propert and tax due

Post by brendac » 20 Oct 2014 19:03

Thank you, that's so helpful! A last query, as we are all up to date with our local taxes etc and assuming there is no Capital Gains tax payable, can we transfer the deeds to the new owner at the Land Registry without legal assistance or do they need to see a Tax Certificate, please?
Would the Tax Office deal with us without a Solicitor?



Nigel Howarth
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Re: Selling a propert and tax due

Post by Nigel Howarth » 21 Oct 2014 09:13

Hi Brendac

Yes you can transfer without a lawyer (but your purchaser will engage one if they have any sense). You can read what needs to be done on pages 45 and 46 of the Department of Lands and Surveys Citizens' Charter.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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brendac
Posts: 3
Joined: 12 Oct 2014 19:59

Re: Selling a propert and tax due

Post by brendac » 21 Oct 2014 11:03

Thanks again for all your help and pointing me in the direction of the Citizen' Charter, this is very informative and has helped us a great deal.



Nigel Howarth
Site Admin
Posts: 2310
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: Selling a propert and tax due

Post by Nigel Howarth » 21 Oct 2014 15:06

You're welcome Brenda.

Regards,


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

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