FOLLOWING his announcement last month that the cabinet was close to approving a temporary 50% reduction in Property Transfer Fees, Cyprus Interior Minister Socrates Hasikos has advised the public not to expect a reduction this year.
In a written statement the minister said that the possibility of reducing Property Transfer Fees by 50% for one year will be considered as part of a wider property taxation reform programme, which will be ready by early 2015 at the latest.
He urged people not to delay property transfers in anticipation of an imminent change in the law adding that the reform programme may be retrospective, in which case any reduction will be returned to those affected.
Statistics from the Department of Lands and Surveys reveal that 62,762 Title Deeds were issued between mid-2009 and mid-2014. However only 23,182 (37%) have been transferred, while the remaining 39,490 are pending.
New property transfer fees reduction
A provision remains in place for reduced Property Transfer Fees on the first sale of a property, which was put in place to encourage the sale of new property, and is valid until 31st December 2016. It applies to the first sale of property, for which the sales contract is deposited during the period 2nd December 2011 and 31st December 2016.
This provision removes the need to pay Property Transfer Fees where the purchaser has paid VAT on the property – and reduces the Property Transfer Fees by 50% in cases where the transfer relates to land, buildings (or their parts) that are sold for the first time from the date that their planning permission or building permit was issued.
So do you stick or twist?
By paying now only to find that the rules for retrospectively receiving the 50% discount have been mysteriously and artfully re-engineered to exclude you, yet again?
Or sit on your hands and remain in the vulnerable and dangerous position that your property developer may go down the pan, as he is pursued for repayment of his Stellar NPL’s, before you get chance to transfer the deeds for your property into your name?
@Costas Apacket on 2014/08/08 at 3:58 pm – For what it’s worth I believe a bird in the hand is worth two (if not more) in the bush.
So who in their right mind would want to transfer their deeds this year in the knowledge that in future they will likely be 50% less?
A minister saying the discount “may” be retrospective would, I would respectfully suggest, not inspire any degree of confidence in anyone capable of thought, analysis and memory recall. Our politicians have proven to us time and time again that when their lips are moving, the likelihood is that they are being economical with either the truth or the true purpose of the rhetoric. We always live in hope and eternal optimism but to date have not had too much to inspire either confidence or trust. So come on boys, forget self interests and gain the respect of your citizens – you know what you have to do.