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Capital Gains Tax (CGT)

Τhe net profit from the disposal of immovable property is estimated by deducting from the disposal price the market value as at 1.1.1980 or the purchase cost if the immovable property was built after this date, as adjusted for inflation based on the retail price indexes and is taxed at 20%.

Lifetime Exemptions to individuals:

  Profit € 
On the disposal of any property    17.086
On the disposal of agricultural land  25.629
On the disposal of own residence (under presumptions)  85.430

The above exemptions are given only once and not at every disposal.

An individual claiming a combination of the above is only allowed a maximum exemption of €85.430.

Exemptions /Allowances

The following disposals of immovable property are not subject to Capital Gains Tax:

 

  • Transfers arising on death.
  • Gifts made from parent to child or between husband and wife or between up to third degree relatives.
  • Gifts to a company where the company’s shareholders are members of the donor’s family and the shareholders continue to be members of the family for five years after the day if the transfer.
  • Gifts by a family company to its shareholders provided such property was originally acquired by the company by way of donation. The property must be kept by the done for at least three years.
  • Gifts to charities and the Government.
  • Transfers as a result of reorganisations.
  • Exchange or disposal of immovable property under the Agricultural Land (Consolidation) Laws.
  • Expropriations.
  • Exchange of properties, provided that the whole of the gain made on the exchange has been used to acquire the other property. The gain that is not taxable is deducted from the cost of the new property, i.e. the payment of tax is deferred until the disposal of the new property.

 

Expenses that are related to the acquisition and disposal of immovable property are also deducted, subject to certain conditions e.g. transfer fees, legal expenses etc.