This tax is applied to only 50% of the profit from the sale of a property and is subject to income tax within the relevant tax brackets. It is based on the difference between the original purchase price and the proceeds from the disposal of a property. This tax is only applied to properties purchased after January 1st 1989.

Capital gains tax is not charged if the profit is reinvested in a private residential property within a 24 month period. This could be for construction, renovation or purchase of a villa or apartment.