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by **Asteris** » Fri Jul 03, 2009 3:58 pm

I have just inherited a property in Cyprus which I am also about to sell. I have seen that there is an exemption to Cap gains tax if you inherit. Does anyone know how this exemption works ?

by **Svetlana** » Fri Jul 03, 2009 4:12 pm

Selling Price - original buying price = Capital appreciation, to which an annual value inflation figure is applied (eg if the property has been owned 10 years and the average indexation is 2%, then the difference is reduced by 20%). In addition, there is a personal allowance of CY£10,000 (£20,000 if the property is registered in two names). You may also set (Registered) Estate Agents' commission and selling legal fees against the Capital Gain and the expenditure of any improvements (for which you must have receipts).

Different rules apply if you have inhabited the property for 5 years, but this does not apply in your case.

If any of the above is not clear, let me know.

Lana

by **Asteris** » Fri Jul 03, 2009 4:26 pm

Hi Svetlana, thanks for the calculation guide.There a lots of Cyprus based websites that mention an exemption when a property is passed due to death but do not provide detail as to how it is applied.

I think it may work as follows

1. Parents bought in 2000 for 45,000 Euros
2. Parents died in 2007 - property was worth approx 135,000 Euros.
3. Gain of 90,000 Euros but no cap gains cos of the 'exemption'
4. Selling now for 100,000. I am subject to CGT but there will be none to pay as I have made loss of 35,000 Euros.

Alternatively there was no tax to pay in 2007 as there is no inheritance tax in Cyprus. Therefore does the 'exemption' apply now when I sell to a third party ?

Thoughts ?

by **Get Real!** » Fri Jul 03, 2009 4:28 pm

Asteris wrote:I have just inherited a property in Cyprus which I am also about to sell. I have seen that there is an exemption to Cap gains tax if you inherit. Does anyone know how this exemption works ?

In the “TRNC” it may be subject to Gunpoint Territorial Acquisition gains tax but you’ll have to check with the lads on that…

by **Svetlana** » Fri Jul 03, 2009 4:46 pm

Get Real

Behave yourself, of I wil send you an autographed photo of Paphitis!

Asteris

What the property was worth in 2007, I believe is irrelevant; I will see if I can find out more about the inheritence of property.

Lana

by **Doratis1980** » Fri Jul 03, 2009 4:46 pm

the exemption is only for the transfer due to gift or due to death and inherit among parents and kids or relatives up to second grade. so after the registration of the property on your name you will have to pay Capital Gain Taxes ( according to what Svetlana wrote above) in case you will sell the property.

by **Svetlana** » Fri Jul 03, 2009 4:53 pm

Asteris

There may be exemption if you inherited from a relative.
You will need a lawyer to handle the sale, so best to ask them.

Lana

by **Paphitis** » Fri Jul 03, 2009 4:56 pm

Svetlana wrote:Get Real

Behave yourself, of I wil send you an autographed photo of Paphitis!

Lana mou - sweet Russian Paphitissa,

That photo of me that I sent you is not intended for Choirokitian male midgets! :twisted:

It was intended for your eyes only, since I know you have a fetish for Aussie Beach Babes :lol:

...and also because I have a fetish for lacey lingerie (on women of course!)... :oops:

by **Svetlana** » Sat Jul 04, 2009 8:34 am

Hi Paphistis

In return, Get Real has sent me a song from the (English) Barmy Army website (we all know GR is a closet 'Englishman'), I don't know the tune...

'He can't read, he can't write,
he must be Australian.

He can't bat, he can't catch,
he must be Ricky Pontin.

He can't drink, he can't fight,
he must be Ricky Pontin'

by **Paphitis** » Sun Jul 05, 2009 9:43 am

Svetlana wrote:Hi Paphistis

In return, Get Real has sent me a song from the (English) Barmy Army website (we all know GR is a closet 'Englishman'), I don't know the tune...

'He can't read, he can't write,
he must be Australian.

He can't bat, he can't catch,
he must be Ricky Pontin.

He can't drink, he can't fight,
he must be Ricky Pontin'

The fact that he is a Pom and NEVER did fit in Australia is an old story.... :roll:

I'll have you know, that in Australia we have very stringent hygiene standards.... :lol:

Are you ever gonna wash, pommie?

Tune: Rock DJ, Robbie Williams

How come you never wash pommie?
Is there a shower in your hostel?
When's it gonna stop, pommie?
We're so sick of that bloody smell.

How come you never wash pommie?
Is there a shower in your hostel?
When's it gonna stop, pommie?
We're so sick of that bloody smell.

:lol:

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