The Cyprus Government has agreed and published the changes to the law on payable transfer fees designed to help stimulate sales of new property by abolishing and reducing transfer fees for a period of six months.
The law which came into effect on Friday 2nd December 2011 will remain in force for a period of six months.
The changes apply specifically and only to the first sale of a property, where the contract is dated and deposited into the District Lands Office within the next six month.
Certain precautions have been taken and added in the law to prevent its abuse. For example, buyers who already deposited their contracts of sale and then withdraw them from the Land Registry Office, changing their dates and re-depositing them will face restrictions as to the original date of registry at the Lands Office.
This new law is expected to increase purchases and motivate investment into Cyprus both from foreign and local sources. The Cyprus property market has always been driven by foreign investment coming into the country and taking advantage of its business, climate and residence conditions. Due to the slowdown in the European economy the Government has recognized that a distinct saving of up to 8% will motivate investors to jump in and buy.
Officials say that this law will only be in place for the next six months and should be taken advantage of now. For those that get a reduction of 50% it will be a significant saving also.
Usually transfer fees are paid and lost as there is no value added to the property, VAT is payable and transferable on a property meaning every future owner will carry on the original payment. However for transfer fees this is money paid every time the property is sold and bought, making this a considerable saving in the buyer’s pocket.
The Purchaser is responsible for the tax-fee payment. The rates are on a graduated scale.
Please click the link bellow for the official publication of the law on the Cyprus Government Gazette.
Более подробную информацию о налогах и сборах при покупке недвижимости на Кипре вы можете получить на нашей странице.
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