ACCORDING to the Memorandum of Agreement (MoU) between Cyprus and the troika, the Cypriot authorities are obliged to “provide for mandatory registration of sales contracts for immovable property by Q2-2013”.
In an effort to fulfil this obligation, the authorities intend to impose a fine on those buying property who fail to deposit their contract of sale at the Land Registry within six months from its date of signing.
This fine will amount to a 10% increase in the Property Transfer Fees payable at legal completion.
Property Transfer Fees are a government tax based on the market value of a property at its date of sale; they are the Cypriot equivalent of the UK’s Stamp Duty Land Tax (SDLT) which are payable on the purchase or transfer of property or land in the UK.
On paying the Property Transfer Fees, title (ownership) of the property is transferred from the transferor (vendor) to the transferee (purchaser).
Legal completion is the time at which the Title Deed becomes available for transfer and the purchaser pays the Property Transfer Fees to secure ownership of the property.