The bank has given us a period of interest only and we are trying to sell before the mortgage reverts back to a higher amount.

We have someone who is showing an interest in the property but we thought we would have to pay Capital Gains Tax on the difference between the price we paid for the house and the price we sell for. However we have discovered that this is not the case and that we will have to pay CGT on the difference between the price we paid and the Catastral Value, regardless of what we actually sell for.

The Catastral Value is far higher than the price we will be able to get for the house and will leave us with a bill of around €170,000 before we take into account any of the other selling costs.

Clearly this is a nightmare situation and we will end up with absolutely nothing once the costs are paid. I'm even concerned that we may not have enough to even cover the costs.

I am now back to considering if we would be better off with a Dacion en Pago, but I'm unsure of what the CGT position would be. Would we still be liable to pay this?