If you’re buying a property in any of these common situations, find out if you will need to pay tax when you eventually sell it.
Main home
Your main home is the property where you live for most of the time, or if you have more than 1 property, it’s the one that you have the greatest connection to.
Generally, you do not pay tax on any profit you make from selling your main home.
There are some exceptions to this. Here are the situations where you would need to pay tax.
When you need to pay tax on property sales
Rental property
If you're buying a property to rent out, you'll have to pay tax on the rental income you earn. You may also have to pay tax on any profit when you sell the property.
Here are the situations where you’d need to pay tax on your rental income and property sale.
When you need to pay tax on property sales
Renting out investment property
Holiday home
If you sell your holiday home or bach, you’ll only need to pay tax on the profit in these situations.
When you need to pay tax on property sales
Buying to sell
If you buy a property with the intention of selling it again, you’ll have to pay tax on any profit from the sale. This applies even if reselling was only one of several reasons for buying a property.
Buying property intending to resell it
Renting out a property I intend to sell or flip
Selling unexpectedly
You may have to sell a property unexpectedly, for example due to:
- money problems
- a relationship change
- having to sell a property you intended to rent-out long-term.
Even if you have to sell unexpectedly, the tax rules do not change. Here are the situations where you’ll need to pay tax on a property sale.
When you need to pay tax on property sales
Struggling to pay?
If you sold for financial reasons and you're having trouble paying your tax bill, we can help.