Capital gains tax is imposed at the rate of 20% on:
- gains from the disposal of immovable property situated in the Republic;
- gains from the disposal of shares of companies not listed on a recognised stock exchange which own immovable property situated in the Republic; and
- gains from the disposal of shares of companies which indirectly own immovable property situated in the Republic and derive at least 50% of their market value from such immovable property.
The following disposals of immovable property are exempt from capital gains tax:
- transfer by reason of death;
- gifts between spouses, parents and children and relatives up to third degree of kindred;
- 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. However, if the shareholder disposes the property within 3 years then the shareholder will not be entitled to the available allowances;
- gift to a charitable organisation or to the Republic or to a political party;
- 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;
- transfer of property of a missing person under administration;
- transfer of ownership between spouses that their marriage as been dissolved by a court order or in case of; transfer of ownership between the same persons for the purpose of setting their property according to the Settlement of Property Relationships between Spouses Law;
- transfer under a qualifying loan restructuring (subject to conditions);
