Cyprus property tax change
Changes to property law on Cyprus that take effect this month December 2011 means that fees will be reduced on property transfers for the next six months.
In a move aimed at stimulating sales on the beautiful Mediterranean island the reduction will only apply to the first sale of a property where the contract is dated and deposited within the period.
It means that those who pay VAT on their house purchase will now not be liable for transfer fees and for those who do not pay VAT on their purchase, property transfer fees will be reduced by 50%, as long as they are within this window of opportunity.
This should inject some life into the Cyprus property market as our buyers have been waiting in the wings for this law ever since it was first heard about, they should now be happy to purchase during the next six months.
There are also provisions in the law to prevent abuse of the tax break and to stop buyers withdrawing contracts of sale deposited at the Land Registry and then altering dates before re-submitting.
Property Transfer Fees are based on the Land Registry’s assessment of the market value of a property at its date of purchase. However, using its discretion to reassess the amount of Transfer Fees payable, the Land Registry relies on its own historical data in a way that cancels out any transfer tax benefit of a bargain buy, which can result in double the expected amount being levied.
Property prices in Cyprus have been muted in 2011 with the Royal Institution of Chartered Surveyors Cyprus Property Index showing that foreign buyers in particular have deserted the market. This led to a low number of transactions and in turn resulted in fewer local people entering the market, but on the positive side, this has produced many bargain buys that will be snapped up very quickly now to use this window of opportunity.
Thinking about buying, now is the time for you to arrange your itinery to view a portfolio of very special bargain properties.
Contact us today then settle back for us to glide you through the process.
See more news about this here Cyprus Property Tax Changes