*ARTICLE 7
CAPITAL GAINS
(1) Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 3 and situated in the other Contracting State may be taxed in that other State.
(2) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.
(3) Gains from the alienation of property forming part of the business property of an enterprise and consisting of ships or aircraft operated by that enterprise in international traffic, boats engaged in inland waterways transport or movable property pertaining to the operation of such ships, aircraft or boats, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
(4) Gains derived by a resident of a Contracting State from the alienation of shares or comparable rights deriving more than 50 percent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State. For the purposes of this provision, immovable property directly used by an entity to carry on its own business (such as a mine or hotel) shall not be taken into account.
(5) Gains from the alienation of any property other than that referred to in paragraphs (1), (2), (3) and (4) shall be taxable only in the Contracting State of which the alienator is a resident.
(6) Where an individual was a resident of a Contracting State for a period of five years or more and has become a resident of the other Contracting State, paragraph (5) shall not prevent the first-mentioned State from taxing under its domestic law the capital appreciation of shares in a company resident in the first-mentioned State for the period of residency of that individual in the first-mentioned State. If the first-mentioned Contracting State taxes such capital appreciation of an individual after the change of residence, upon subsequent alienation of the shares, if the gains derived therefrom are taxed in the other State in accordance with paragraph (5), that State shall, in determining the amount of the capital gains, apply as acquisition costs the value of the shares at the time of the change of residence. If the sale price is less than the value of the shares at the time of the change of residence, the sale price shall be taken into account in determining the capital gain by the first-mentioned State.