by Nigel-Howarth » 10 Nov 2016 09:42
Hi Mal
Here's what the law says about Property Transfer Fees (translation from Google):
(1) No charge is imposed or levied by Chapter 17 of the Panel, when for the same offense on the same immovable property imposed Value Added Tax on the relevant legislation:
Provided that when the Director is not satisfied that the sale price is declared and on which it imposed Value Added Tax represents the market value of the property at the date on which it agreed to sell, the Director may, at its discretion, impose and received a fee based on the scale set out in Chapter 17, which is calculated on the purchase price, minus the fee to be paid on the sale price declared and on which it imposed value added Tax.
(2) When conducting transfer declaration for which charges and fees levied on the basis of Chapter 17 of the Panel, the transfer fee charged is reduced by fifty percent (50%).
If you paid VAT you will not have to pay any Transfer Fees unless the Land Registry's assessment of its value at its date of sale is greater than you paid. In this case you will pay Transfer Fees based on the assessed value of the property minus the price you paid.
Regarding fines, the law says:
(A) when it has been executed by the Director any service issue concerning immovable property, upon request or at the request of such immovable property owner or person entitled to be registered as proprietor, any balance of the fee or royalty to be levied for such service under the provisions of this Law which remains unpaid, a burden on such real property, similar to the record judgment under the provisions of Article 53 of the Civil Procedure Law, as may be amended or replaced, and has priority over all other charges and any encumbrances whether arising before or after the execution of such a service, and no transfer or such property mortgage will not be recorded unless the payment of such rest, and when the property is to be sold to the satisfaction of any other charge or encumbrance, the sale is subject to epifylachtheisa value which is not smaller than the balance mentioned above.
(B) Any amount of the fee or royalty, which remains unpaid, under this Law, the debt to the Republic and bear the public interest for late payment from the day the amount became payable, pursuant to the Universal Default Law Rate Treasury , as may be amended or replaced.
(C) The Director immediately after the entry into force of this Law shall issue a notification in the Official Gazette in which it communicates to all fees or royalties debtors, as in paragraph (a) above refers to the application of paragraphs provisions (a ) and (b) of this article and calls them as within two months from the date of entry into force of this Act pay arrears, otherwise, after the expiry of two months, the provisions of paragraphs will be activated (a) and (b) this Article.
This change in the law was introduced in 2013 but I haven't heard from anyone who's been fined for not paying Transfer Fees. Also there is nothing about any fine being 10%. (But if you apply for your deeds and do not pay Property Transfer Fees within the stipulated time the transfer will take place and a charge equal to 150% of the Transfer Fees will be lodged against the Title.)
Regards,