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CAPITAL GAIN TAX |
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Capital Gains Tax is imposed on gains from disposal of
Immovable property situated in the Republic
including shares of companies not listed on a
recognised Stock Exchange which own immovable
property situated in the Republic, at the rate of 20%.
In computing the capital gain the value of the
immovable property as at 1 January 1980 (or cost if
the date of acquisition is later), the cost of any
additions after 1 January 1980 or the date of
acquisition if later, any expenditure incurred for the
production of the gain and the indexation allowance,
are deducted from the sale proceeds. |
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The following expenses are not considered expenses |
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wholly and exclusively for the production of the |
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profit and therefore are not deductible: |
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a) Immovable
Property Tax
b) Immovable
Property Fees
c) Sewerage
Council Fees |
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Exemptions
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The following disposals of immovable property are |
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exempt from capital gains tax: |
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transfer on
death |
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gifts between spouses, parents and children and |
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relatives up to third degree |
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gift to a company whose shareholders are |
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members of the donor’s family and continue to be |
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members of the family for a period of five years |
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from the date of the gift |
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gift by a family company to its shareholders, if the |
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company had also acquired the property in |
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question via donation. However if the shareholder |
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disposes the property within 3 years then the |
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shareholder will not be entitled to the deductions |
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listed below.
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gifts to charitable organisation or the Republic |
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exchange or disposal under the Agricultural Land
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(Consolidation) Laws |
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exchange provided the gain is used for the |
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acquisition of new property. The gain derived |
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from the exchange reduces the cost of the new |
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property and the tax is paid when the latter is |
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disposed |
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expropriations |
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transfer of ownership or share transfers in the |
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event of company reorganisations |
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transfer of property of a missing person under |
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administration |
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Deductions |
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Individuals are entitled to deduct from the gains the |
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following: |
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€ |
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Disposal of principal private residence |
85.430,07 |
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(subject to conditions) |
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Disposal of agricultural land by a farmer |
25.629,02 |
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Other disposals |
17.086,01 |
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The above are lifetime deductions. |
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