CGT when buying plot/building.

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This topic contains 4 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 9 years, 8 months ago.

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  • #52762
    Profile photo of marios
    marios
    Participant

    How is CGT worked out if you buy a plot then build a house then sell in the future,is the 18% tax based on the difference between the cost of plot/building minus fees furnishings and taxes or is it based on valuation when built taken from selling price when sold.

  • #70528
    Profile photo of Anonymous
    Anonymous
    Participant

    I hope note the former.

    Surely it is based on the declared value of the house once built and registered.

  • #70570
    Profile photo of Anonymous
    Anonymous
    Participant

    I think its very simple but also very complex

    The capital gains is based on the difference between the cadastral value when bought and when sold, minus allowable (IVA included) expenses and taxes.

    If you buy a plot of land for €50,000 and sell a house on the same plot for €300,000 and it cost you €100,000 to build inc taxes and expenses, then you have made a capital gain of €150,000.

    Therefore the 18% would be paid on this amount, UNLESS you were a resident and it was your primary residence, in which case provifing you paid all the gain into another property you would not have to pay any capital gains tax at all (in my understanding)

  • #70586
    Profile photo of marios
    marios
    Participant

    Cheers vbtudor

  • #70592
    Profile photo of Anonymous
    Anonymous
    Participant

    You’re welcome

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