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Tax on second property sale
Posted: Thu 11 May 2017 7:52 pm
by Will_iam
Does anyone know what the tax rates are when selling a second property. We sold a property last year and now have another property that we have sold.
Re: Tax on second property sale
Posted: Fri 12 May 2017 7:02 am
by Keithcaley
If the second property was not your 'sole residence in TRNC' (as seems likely) then it may be classed as a 'Business Sale', in which case you could be liable to pay VAT, Capital Gains Tax, and Stoppage.
I think that you need the services of a good TRNC accountant!
Re: Tax on second property sale
Posted: Fri 12 May 2017 8:48 am
by Will_iam
Thanks keithcaley.
Obviously the property is just a holiday home - the only one in Cyprus. We go over 2-3 times a year. We had a holiday home before this current one that we sold a few years ago. However someone has informed me that because I am now selling a property for the second time I will be liable to pay tax on the sale. It's the only property that I own in Cyprus.
Would that be classed as 'sole residence'?
Re: Tax on second property sale
Posted: Fri 12 May 2017 8:52 am
by Keithcaley
Will_iam wrote:Thanks keithcaley.
Obviously the property is just a holiday home - the only one in Cyprus. Would that be classed as 'sole residence'?
I don't know, that's why I suggest consulting an accountant...
The fly in the ointment might be the other property sale, which was presumably treated as a 'Private sale', so get some proper advice!
Re: Tax on second property sale
Posted: Fri 12 May 2017 8:54 am
by Will_iam
Sorry keithcaley, I edited my first post while you were responding!
Re: Tax on second property sale
Posted: Fri 12 May 2017 8:59 am
by Keithcaley
Now I'm confused, in the first post you said that you sold the other property 'last year', and that you were now selling another, the implication being that you owned them both at the same time.
Now you are saying that you sold the other one 'a few years ago'!
See an accountant, and give him accurate information if you want to get accurate advice...
Re: Tax on second property sale
Posted: Fri 12 May 2017 7:00 pm
by gary&shirley
Hi, your first property would have been sold using your one time tax free sale allowance however your second will require you to pay 3% unless the government class you as a business man when you will pay 6%.
Re: Tax on second property sale
Posted: Sat 13 May 2017 12:09 am
by ozankoys
You have to sell 4 properties before you are classed as 'professional' then the tax is 6%
i think the non professional rate is around half this but why not go to the tax office to check sorry to disagree with you Keith but I do not see why you would have to pay an accountant on this occasion.