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is there tax on selling an apartment
Posted: 27 Sep 2017 19:05
by Twilight40
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
Posted: 28 Sep 2017 07:04
by Pantheman
Twilight40 wrote: 27 Sep 2017 19:05
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
Re: is there tax on selling an apartment
Posted: 10 Nov 2017 08:23
by umeca74
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"?
Re: is there tax on selling an apartment
Posted: 10 Nov 2017 09:33
by Nigel Howarth
umeca74 wrote: 10 Nov 2017 08:23I always had a problem with CGT. Is it adjusted for inflation?
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.
Regards
Re: is there tax on selling an apartment
Posted: 11 Nov 2017 08:15
by umeca74
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
Re: is there tax on selling an apartment
Posted: 11 Nov 2017 14:43
by Nigel Howarth
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,
Re: is there tax on selling an apartment
Posted: 11 Nov 2017 17:38
by umeca74
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 :)
Re: is there tax on selling an apartment
Posted: 11 Nov 2017 18:28
by Nigel Howarth
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,