CYPRIOT MPs voted unanimously to cut Property Transfer Fees by 50 percent as part of a wider tax reform package designed to modernise the island’s property tax system and encourage economic activity in the real estate sector.
The reduced transfer fees will apply to all property sales and registrations of leases or subleases that take place until 31 December 2016.
In addition, the transfer fees payable on transfers of property from parent to child will be abolished together with the fees payable when properties of an equal value are exchanged.
The Cyprus government believes that the reduction in Property Transfer Fees will help to stimulate economic activity in the property sector and reduce the backlog of titles that are waiting to be transferred to the property’s purchaser.
Due to the complexity of the bills to consolidate various property taxes into a single ‘real estate tax’ and set a tax rate of 0.1 percent of a property’s 2013 taxable value, the bill will not be discussed by parliament until September, after MPs return from their summer recess.
We expect the full text of the revised law to be published in the next few days.