Capital Gains Tax

Capital Gains Tax is a tax levied on the profit earned when an asset is sold for more than its original purchase price. Taxable assets typically include real estate, shares, and other investments.

The taxable amount is the difference between the sale price and the purchase price, after deducting valid transaction-related costs. In some countries, the longer an asset is held, the more favourable the tax rate becomes.

Capital gains tax rates vary significantly between countries. Some nations apply a flat rate, while others offer exemptions if the asset is held for a certain period or serves as the owner's primary residence.

For international real estate investors, capital gains tax is a cost that must be factored into the investment case from the outset, as it directly affects the net proceeds upon exit.

Learn how a European country applies property taxes in our article on tax in Greece.