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How much tax will I pay if I sell the property I bought 3 years ago?

Tax Law

Antonio Flores Vila

29th of June 2002

Q. I purchased a property 3 years ago and I was wondering what rate of capital gains tax would I pay if I sold the property now or in the future. Is there a time period after which capital gain tax is not payable?

Hugh Hogan
Dublin

    A. If you sell your property now, as a non-resident fo tax purposes, you will have to pay 35%* Capital Gains Tax on the net profit made on it. You are not entitled to any reduction on the profit due to the number of years in ownership, as this only happens for properties bought before December 1994.

    You may be able however to avail from the inflationary correction factor which would be applied to the property price when bought. For properties bought on 2000, the factor is 1.02, which means that the purchase price, together with costs, will have to be multiplied by that number.

    --

    * Note: Cgt for non residents was reduced to 18% on 2007


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