Capital gains tax liability on sale of villa

Questions about selling property
Post Reply
Jackjack336
Posts: 6
Joined: 05 Jun 2019 03:34

Capital gains tax liability on sale of villa

Post by Jackjack336 »

I bought in 2005 from a uk citizen.I am considering selling and am putting together the associated costs of doing so.One of those costs is capital gains tax liabilty which is of course based on any increase in value of the villa.However, I paid much more than was recorded on the contract of sale and the seller as being the original developer.I was green ( yes and stupid) at the time and didn't question his actions but why did my lawyer do this? Was it purely to save the sellers tax liabilities at the time? The relatively low recorded sale price on the contract of sale obviously means I now would have an increased liability to CGT.The lawyer wont give me any answers sadly.Is there any way I can update/change the contract of sale retrospectively? I have proof of what I originally paid, it's just not the amount included in the contract.
Pantheman
Posts: 807
Joined: 26 Jan 2008 14:44
Location: Famagusta District
Contact:

Re: Capital gains tax liability on sale of villa

Post by Pantheman »

Dear Jack,

unfortunately, you will have to suffer the losses on this one, because:

1. You cannot now change the contract as the developer is unlikely to sign any new paperwork (causing him higher taxes!)

2. You will be incriminating yourself and the developer for tax evasion and could well get arrested and prosecuted for these action.

Any so called proof you have, if it was written on a scrape of paper would not be valid and I would be suspicious if you told me you had a bona fide receipt for the extra you paid.

I think you may have yo just put it down to experience.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
Nigel Howarth
Site Admin
Posts: 2911
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: Capital gains tax liability on sale of villa

Post by Nigel Howarth »

Hi Jack

I concur with Pantheman - you can't change the contract. And the contract figure will be recorded at the Land Registry.

The reason the developer recorded a lower sale price on the villa was to reduce his Capital Gains Tax liability.

Didn't the Land Registry notice anything when you paid the Property Transfer Fees?

If the villa's been your permanent residence for a minimum of 5 years you'll get an allowance of €85,430. If not you'll get an allowance of €17,086 - and if you bought in joint names, you'll each get an allowance of €17,086.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Jackjack336
Posts: 6
Joined: 05 Jun 2019 03:34

Re: Capital gains tax liability on sale of villa

Post by Jackjack336 »

Thank you for your replies.. In my heart of hearts I knew there was no course for redress but really wanted to know why the lawyer did it in the 1st place. My questions have been answered, so thanks again jj336
Jackjack336
Posts: 6
Joined: 05 Jun 2019 03:34

Re: Capital gains tax liability on sale of villa

Post by Jackjack336 »

I had no contact from the land registry post sale btw..
Post Reply