CGT,s

[Sodyllt]

Hi Nigel,

Sorry on my first post to bring this old chestnut up again.

But we have a dispute still ongoing re CGTs, would you know if you were non resident in Cyprus when you first bought your property here then sold it a few years later, are you still liable for CGTs?

We brought up the fact that we paid a considerable cancellation fee to the Developer without a reciept for most of it ( cash only) paid with our then lawyers guidance the same Developer now wants US to clear our debts on the resale so that they can issue the new buyers of our once property their TDs ( this was sold in 07) not wanting to stand in the way of real progress we suggested they paid the cancellation fee they took from us then as payment. Seems fair to me

Anyway I also read that if all the gain was used in another purchase, and it was plus more, then the CGT can be carried onto the next time the new property is sold. This info was on a website from George Coucounis. Plus I think I read something similar on your website re CGTs from another author?

Another quick question this is regarding our newer property we have been in nearly four years land bought nearly five years ago, it says the one off allowance doesn't apply to properties with a plot larger than 1500 sq m. Does that mean no allowance or less allowance or what? doesn't point it out clearly. Thanks Nigel in anticipation. I do know that the allowances are one offs, and that it only pays up to this allowance, but we have problems re estate agents fees back then, as the licence number was false so we can't offset the fees on over €20'000 that we paid out, plus the illegal cancellation fee wasn't fully receipted ( well it wouldn't be would it) so that's another €9500 we cannot offset, we are being asked to pay more CGTs for things we didn't do. They won,t listen of course, but we keep trying. Is there are body we can appeal too?

[Nigel Howarth]

Hi Sodyllt and welcome to the forum,

I'm afraid there's no way you can escape paying Capital Gains Tax on any profit you made from the sale of property in Cyprus, regardless of whether you are resident or non-resident.

Any Capital Gain is liable to be taxed at the rate of 20%, subject to certain conditions and allowances. The first is an allowance of €17,086 per person - so if you bought in joint names, the first €34,172 of the gain will be tax free and this will be adjusted for inflation using the Inland Revenue's Consumer Price Index.

In addition, there are further allowances that you can use to offset your CGT liability. These include Stamp Duty, Immovable Property Tax, interest on loan used to purchase the property, estate agent's fees/commission (but only registered estate agents), professional charges, additions or improvements to the property after buying and before selling.

There is a lifetime limit on the amount of CGT allowances an individual can claim - this is €85,430. And once you have reached this figure, no more allowances will be accepted.

(You can read the article you refer to on my website at http://www.news.cyprus-property-buyers. ... 2/id=00673 )

With you newer property, you will still get an allowance on any capital gain you may make, but as the property is on a plot of land that exceeds 1,500m2, you will pay tax on the percentage over 1,500m2. (I'm not too sure how this is calculated).

(If you were resident in Cyprus and the property was your permanent residence for a period of more than five years, you may be entitled to claim the maximum lifetime CGT allowance €85,430).

I'm afraid that many have been caught by 'dodgy' developers and cowboy estate agents - and as your transactions were in cash with no receipts, proving your case will be impossible.

Regards,