- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Title Deed backlog costing millions

tax-cutBETWEEN June 2009 and May 2014 the Land Registry issued a total of 62,672 Title Deeds of which a mere 23,182 (37%) have been transferred, while the remaining 39,490 are pending.

The news report, which was published in the Cyprus Weekly, did not reveal how many any of these remaining 39,490 deeds cannot be transferred due to unpaid mortgages, taxes and other debts of the transferor (the developer/vendor).

According to Land Registry figures, between 2012 and May 2014 the Government collected €73.6 million from Title Deed transfers across the island:

In 2012 the state collected:

In 2013 transfer fee collections amounted to:

And during the first five months of 2014, the government collected:

The annual report from the Audit Office concludes: “Taking into consideration the large number of cases where for various reasons the issuance of title deeds is pending, it is obvious that if they are finalised, the state’s revenue will come to millions of euros from transfer fees.”

The Audit Office has suggested that a system be implemented to monitor the licensing of developments in relation to the issuance of Title Deeds.

It is generally accepted that recent statements made by the island’s Interior Minister, Socrates Hasikos, concerning a possible 50% reduction in Property Transfer Fees may be delaying purchasers from paying until the government reaches a decision.