Property Transfer Fee Reduction (revised)

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Property Transfer Fee Reduction (revised)

Postby Nigel-Howarth » 28 Jul 2015 15:34

I have managed to acquire the Consolidated Land Registry Fees Law.

The much anticipated reduction in Property Transfer Fees are as follows:

For transfers that take place before the 31st December 2016, the Property Transfer Fees are reduced by 50% or 100% if they paid VAT on their purchase.

However if the Director of the Land Registry considers that the price stated on the contract of sale does not reflect the market value of the property at its date of purchase he may, at his discretion, charge the full Property Transfer Fees based on the market value of the property at its date of sale less the price stated on the contract of sale.

Those who have or will purchase property between December 2, 2011 and December 31, 2016 will benefit from the reduced Property Transfer Fees regardless of then the transfer takes place.

(The law make no mention of a refund for those who have recently paid their Property Transfer Fees)

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Property Transfer Fee Reduction (revised)

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Re: Property Transfer Fee Reduction

Postby tandc » 28 Jul 2015 17:46

So still a bit unclear for those who have paid for their deeds recently.

I have asked my lawyer for advice and will input when I have it
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Re: Property Transfer Fee Reduction

Postby RETROFAME » 28 Jul 2015 17:51

Hi Nigel

So am I right in thinking that even though I purchased my property in 2006, I will still be eligible for the 50% discount (providing the transfer takes place before 31 Dec 2016)?.

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Re: Property Transfer Fee Reduction

Postby Nigel-Howarth » 28 Jul 2015 18:48

RETROFAME wrote:So am I right in thinking that even though I purchased my property in 2006, I will still be eligible for the 50% discount (providing the transfer takes place before 31 Dec 2016)?.


Yes

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Re: Property Transfer Fee Reduction

Postby Nigel-Howarth » 28 Jul 2015 18:49

tandc wrote:So still a bit unclear for those who have paid for their deeds recently.


Really? I thought I made it clear that the law make no mention of IPT refunds to be paid to those who have recently paid their Property Transfer Fees.

If refunds were on offer, these would have been included in the law.

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Re: Property Transfer Fee Reduction

Postby tandc » 28 Jul 2015 18:55

Hi Nigel,

I don't wish to be pedantic but you refer to refunds of IPT(Immovable Property Tax?)
whereas i am looking for a reduction in Land Registry Property Transfer Fees.

Or am I still confused?

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Re: Property Transfer Fee Reduction

Postby Nigel-Howarth » 28 Jul 2015 19:57

tandc wrote:I don't wish to be pedantic but you refer to refunds of IPT (Immovable Property Tax?)


Argh! My apologies whata mistakea to makea! I've corrected my announcement.

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Re: Property Transfer Fee Reduction (revised)

Postby daveg » 17 Mar 2016 13:29

We have been informed that our Villa will be put onto our land Deeds " Within a month?", having finally acquired the Cert. of Completion....Will we be liable for a transfer fee?
We bought the land back in 2007, and then had the Villa built upon it...

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Re: Property Transfer Fee Reduction (revised)

Postby Nigel-Howarth » 29 Mar 2016 21:29

Hi David

Sorry for the delay - if you already have the Title Deed for the land and are merely adding adding your villa to it, no transfer fees are payable.

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Re: Property Transfer Fee Reduction (revised)

Postby daveg » 30 Mar 2016 08:42

Thankyou very much Nigel...appreciated
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Re: Property Transfer Fee Reduction (revised)

Postby Jim B » 30 Mar 2016 12:07

Nigel

We paid for our Title Deeds three weeks ago and as said in your post the value of the property is at the discretion of the Land Registry; fortunately ours was accepted as the price shown at the time of purchase in 2003. The Gentleman who sorted out our Deeds was the retired Chief of the Land Registry Department and he was telling me we were fortunate to get it at that price as they have been raising the values on many properties..

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Re: Property Transfer Fee Reduction (revised)

Postby Nigel-Howarth » 14 Sep 2016 11:33

A bit late - the 50% reduction in Property Transfer Fees is now permanent. So transfers that take place after the 31st December 2016 will also be discounted.

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Re: Property Transfer Fee Reduction (revised)

Postby rlbenson » 30 Sep 2016 12:57

[quote="Nigel-Howarth"]A bit late - the 50% reduction in Property Transfer Fees is now permanent. So transfers that take place [b][i]after [/i][/b]the 31st December 2016 will also be discounted.

Regards,[/quote]


Hello;
For what it's worth, we were told this past Tuesday by a person in the Local Enquiry Department here in Paphos District Land Registry that the 100%/VAT aspect is also extended in a similar fashion - no cutoff date set. Nothing in writing on that, but after she told us about the 50% extension and I asked about the VAT element, that was her answer. Perhaps you have more definitive information on that aspect now?
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Re: Property Transfer Fee Reduction (revised)

Postby Nigel-Howarth » 30 Sep 2016 18:11

rlbenson wrote:we were told this past Tuesday by a person in the Local Enquiry Department here in Paphos District Land Registry that the 100%/VAT aspect is also extended in a similar fashion - no cutoff date set. Nothing in writing on that, but after she told us about the 50% extension and I asked about the VAT element, that was her answer. Perhaps you have more definitive information on that aspect now?


It appears so. If you look at the property transfer fee calculator on the Dept of Lands & Survey's website at http://portal.dls.moi.gov.cy/en-us/Page ... rFees.aspx - it says (at the bottom on the page):

​​​Note:

For all those property sales for which VAT was paid, no transfer fees are applied. For all other cases, a 50% reduction is applied on the amount shown above.​


(I've looked at the latest updates to the law on the subject but I haven't been able to find anything regarding Property Transfer Fees & VAT.)

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Re: Property Transfer Fee Reduction (revised)

Postby mal1325 » 09 Nov 2016 23:09

Hi Nigel,
Sorry about going on about the 100% VAT and 50% reduction after 31st Dec this year, but our developer has emailed us urging us to find the money to 'get our deeds' by Dec saying a 10% fine is going to be imposed after that!
Following your lead we understand that it has been extended indefinitely for the 50% and that it also seems the same for the VAT. I replied to the developer saying what we understood the situation to be, but he still insists that it ends next month. We also told him that on our sale contract it says the price, ' including VAT ', he said no he didn't think so and we need to pay. We really could do with a definite answer. Can you help please, it's getting a bit urgent. Thank you
Mal
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Re: Property Transfer Fee Reduction (revised)

Postby 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.)

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Re: Property Transfer Fee Reduction (revised)

Postby mal1325 » 10 Nov 2016 10:20

Thank you Nigel, that answers part of my question, but can you confirm that the cut off date of 31st December 2016 HAS been extended and where I can find it in writing please.
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Re: Property Transfer Fee Reduction (revised)

Postby Nigel-Howarth » 12 Nov 2016 19:31

Hi Mal

There are three sources for this information:

1. The notes at the foot of the Department of Lands & Surveys Transfer Fee Calculator.

2. The Department of Lands & Surveys Fees & Charges (revised 4th November 2016).

3. The Law on Lands and Surveys Department (Fees and Rights) Act (KEF.219) - in Greek. (Section 10 refers to transfer fees). Copy & paste it into Google Translate.

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