Capital Gains Tax

Liam-Jac Image
10/22/2009 - 11:20

Does anyone know the capital gains tax on any profits for a property sold within 5 yrs of ownership?We bought our ruin 2 yrs ago and are about 3/4s through renovating only for the funds to have dried up.We'll probaly mothball and hopefully will get to complete the work as and when financial circumstances improveOne option though is to sell as is, however, i tend to remember reading on here (tried,but couldnt find it) that Capital Gains Tax applies to anything sold with 5yrs of ownership. Can anyone confirm if this is so and at what rate?Tks in adavance


yes can confirm tax on any gain (- costs) within 5 yr period.However bear in mind the 5 year law is only relevant in Italy - it does not apply in the UK - If you live in UK and your Italian property is a second home, you will still be be liable to UK CGT @18% on any gain (minus costs + annual allowance) to Inland Revenue no matter when you sell. 

  You would have a capital gain on any profit minus invoiced work made on the property if you did not take 'prima casa' on your purchase - as its a ruin I doubt that you did.  If it were a prima casa there would be capital gain if you sold and had residence for less than half the amount of time that you had owned the property.