CGT when buying plot/building.

[mariosParticipant]

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.

[AnonymousParticipant]

I hope note the former.

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

[AnonymousParticipant]

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)

[mariosParticipant]

Cheers vbtudor

[AnonymousParticipant]

You’re welcome

[Author]

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