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2014 tax reform: capital gains tax

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6 Oct. 2014

The Government has reduced the tax scale for savings income from current top rate of 27% to 24% in 2015 and 23% in 2016. The band has also changed and the marginal rate will apply above 50.000 €.

All capital gains will be taxed at savings rates regardless of the holding period.

Indexation will no longer apply. Inflation relief for properties purchased before 1994 will be eliminated.

Tip: if you are planning to sell real estate acquired some time ago, we recommend selling before end of 2014, especially when the property was acquired prior to 1994.

Tip: short-term sales? Wait for 2015 if the holding period is less than 12 months.

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