Title Deeds

[GELLY1]

Hi Nigel, I have a query about our deeds.
We have started the process with the land registry of obtaining our deeds, we have got as far as
paying off the balance of account owed to our developer into his account set up by the Land Registry
just yesterday.
On speaking to a person last night who actually owns a number of properties, he made us aware that
after paying and receiving our deeds, and we were to sell our property, then next buyer would also have to
pay the same amount for deeds again. Our question is, is this correct, and if so what is the benefit to us
in purchasing them. Would we be better off just leaving them with the Land Registry in our name, thus saving
a few thousand euros.
Thank you in advance Nigel.

[Maramike]

Sent you a PM

[Nigel-Howarth]

Hi GELLY1

I don't know first used the expression 'purchasing deeds'. If I knew who it was, I'd strangle them.

You are NOT paying for the deeds, you are paying a government tax on the purchase of the property known as Property Transfer Fees. These are the local equivalent of the Stamp Duty Land Tax (SDLT) that is paid in the UK. (In the UK, it's often abbreviated to 'Stamp Duty')

Anyone who purchases a property in Cyprus is liable (by law) for Property Transfer Fees.

If a house is sold 12 times, each of the new owners will be required to pay Property Transfer Fees.

As you have applied for your Title Deeds you will be offered a 10% discount on the Property Transfer Fees if you pay immediately - or you can opt to pay the fees in 12 monthly instalments. If you do not pay the Property Transfer Fees a charge will be placed against your property equal to 150% of the Property Transfer Fees.

Currently there is a further 50% discount if you did not pay VAT on the purchase price of the property - and a 100% discount if you did pay VAT.

So if you do not pay the Transfer Fees rather than saving yourselves a few thousand Euros it will cost you a few thousands more when you come to sell the property.

Regards,

[trevnhil]

Brilliantly laid out Nigel..

Trev..

[GELLY1]

Thanks for that Nigel, it's clear now what we have to do.
Had to laugh, me falling into the old phrase, "Paying for our deeds" and how you would like
to strangle the person who came up with it, I don't know where you would be in the queue though!
Thanks again.

[Nigel-Howarth]

Hi GELLY1

Believe it or not you can actually buy your deeds - each copy will cost you €10.00.

Cheers,

Nigel

[Petit Mousse]

Good morning Nigel (UK time). I read your latest article concerning the abolition of the end-of-year deadline for the 50% discount on the transfer fees. There is no mention of the further 50% for those who paid VAT on the purchase price. Do you know if the 50% VAT discount will still be applicable beyond the end of the year? Many thanks in advance for your reply.

[Nigel-Howarth]

Do you know if the 50% VAT discount will still be applicable beyond the end of the year? Many thanks in advance for your reply.

There was no mention of this in the announcement.

Regards,

[Petit Mousse]

Thank you Nigel. We applied for our Deeds 9 months ago and they are still moving at a snail's pace through the Paphos Land Registry Offices. I hope they won't drag it on for another 6 months so that people will miss the deadline.

[mal1325]

Hi Nigel,
Regarding petite mouse posts about the Further 50% reduction after Dec. Is there anyway we could get a definite answer on that? I was so pleased after reading the posting on Monday, but now it's thrown doubts. It would be a difference of around €5,000 to us so it's mega important. Thank you.
Mal

[Nigel-Howarth]

Is there anyway we could get a definite answer on that?

There isn't Mail - the decision rests with the Finance Ministry and the government.

Regards,