Selling land

[Boom Boom]

Nigel
I am considering selling a plot of land which I purchased 5 years ago.
I have the title deeds.
An estate agent has suggested that VAT of 19% is to be charged on it, under
new legislation. Is this correct?

[Nigel-Howarth]

Hi Boom Boom

The 19 VAT is for land sold by property development companies - not individuals. Please refer to http://www.news.cyprus-property-buyers. ... d=00148963

(The law hasn't been passed yet).

REgards,

[Boom Boom]

Many thanks Nigel, most helpful as always.

Boom Boom

[gisela]

Hi, we also have the opportunity to sell land. We own to plots, our house is on the one and we are considering to sell the other.
Is there a bottom line of a price, which exempts you to pay the 20% tax when selling. Would be helpful to know for making the price define.

[Nigel-Howarth]

Is there a bottom line of a price, which exempts you to pay the 20% tax when selling.

There is no bottom line price, but there are allowances - see Capital gains tax laws on the disposal of property

Regards,

[gisela]

Thank you, I've seen this, but do not understand:
'' Any Capital Gain is liable to be taxed at the rate of 20%. Subject to certain conditions, individuals may claim the following deductions: Up to €85,430 if the disposal relates to a private residence. - Does that also affect a building plot?
''Up to €17,086 on any other disposal.'' - Means ?

Sorry but my English is not the best.

[gisela]

We have an updated title deed from 2016 with a valuation amount from 1/1/2013. Is this amount the one which has to be substracted from the selling price to get the amount from which we have to pay the capital gain tax?

[Nigel-Howarth]

'Up to €17,086 on any other disposal.'.

That will include your land.

To answer your other question, Capital Gains Tax is assessed on the price you achieve from the sale of the property minus the price you paid for the property. So if you paid €100,000 for the property and sold it for €150,000 your Capital Gains Tax would be assessed on €50,000 (adjusted for inflation and the deduction of any allowances.)

Regards,

[gisela]

Sent you a pm.