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Capital Gains Tax is imposed on gains from disposal of immovable property situated in the Republic including shares of companies not listed on a recognised Stock Exchange which own immovable property situated in the Republic, at the rate of 20%.

In computing the capital gain the value of the immovable property as at 1 January 1980 (or cost if the date of acquisition is later), the cost of any additions after 1 January 1980 or the date of acquisition if later, any expenditure incurred for the production of the gain and the indexation allowance, are deducted from the sale proceeds.


The following disposals of immovable property are exempt from capital gains tax:

  • transfer on death
  • gifts between spouses, parents and children and relatives up to third degree
  • gift to a company whose shareholders are members of the donor’s family and continue to be members of the family for a period of five years from the date of the gift
  • gift by a family company to its shareholders, if the company had also acquired the property in question via donation and provided the property remains in the possession of the shareholder for at least three years.
  • gifts to charitable organisations or the Republic
  • exchange or disposal under the Agricultural Land (Consolidation) Laws
  • exchange provided the gain is used for the acquisition of new property.  The gain derived from the exchange reduces the cost of the new property and the tax is paid when the latter is disposed
  • expropriations
  • transfer of ownership or share transfers in the event of company reorganisations.