There are commonly 3 taxes which can be charged when property is bought or sold.
- Goods & Services Tax (GST)
- Capital Gains Tax (CGT)
- Stamp Duty
There is no Stamp Duty in NZ (but it is charged in Australia).
CGT only applies if you bought after November 2015 and sell within 2 years.
GST applies when an apartment is on a commercial lease.
When selling your apartment, it is important to know what taxes you may or may not have to pay as this effects the outcome.
There are three main taxes involved when selling your property/apartment in Australasia but not all or any will apply to you necessarily.
New Zealand is a great place for property as the taxes charged are lower than any other first world country.
There is no Stamp Duty which is a tax charged on purchasing a property in Australia or the UK.
Capital Gains Tax only applies to you if you bought after November 2015 and sell within 2 years.
However, the one tax to look out for which many owners forget or are unaware of is GST.
Goods & Services Tax or more commonly known as GST applies to you if the apartment is bought with the intention to be used for what is called a taxable supply.
I.e. for a commercial capacity.
For example, a guaranteed rental, commercial lease or an apartment in a hotel lease.
The important thing here is if your apartment was intended to be used as a taxable supply make sure you talk to your accountant, as there is a good chance that when your sell your apartment a 15% tax will be applied or passed onto the next purchaser both effectively reducing what you are left with.
Tags: apartment selling, apartment specialist, apartment specialists, Auckland apartment, auckland apartment sale, auckland apartment sales, auckland apartments, Auckland CBD, Auckland real estate, selling apartment, tax, TradeMe