Cyprus Property News magazine for overseas buyers & real estate investors

Thursday 16th July 2020

Elias Hazou

VAT break for young couples buying land for first home

Young couples buying land for their first home in Cyprus may only pay 5 per cent VAT on its purchase price rather than 19 per cent under a draft bill submitted to parliament by the government.

Another stab at resolving the Title Deeds mess

The Cyprus government to take another stab at resolving Title Deeds mess created by nefarious developers who duped people into buying mortgaged property as the law passed in 2015 failed to fully address the problem.

Primary residences protection scheme falls flat

The government backed primary residences protection bill designed to protect an estimated 200 crisis-stricken homeowners against foreclosure has failed MPs heard on Monday.

Vote imposing VAT on land sales postponed

A vote by the Cyprus government on a bill to impose 19 percent VAT on land sales (building and development plots) has been postponed until September; the draft bill will be sent to the EC.

Imposing VAT on land sales

Cyprus is facing hefty fines from the European Commission if it does not impose VAT on land sales, but the imposition of VAT will have knock-on effects on the property market and the banks.

MPs seek sewerage rate reduction

Sewerage rates in Cyprus, which are based on a property's value as determined by the Land Registry need to be revised following the property revaluation exercise carried out in 2013 to prevent astronomic rises.

New repossessed property regulations

New regulations allowing the banks to rent and maintain repossessed properties on their books and allow them to complete unfinished properties are being discussed by the house finance committee.

Nicosia protest against foreclosures

A protest outside the presidential palace in Nicosia against foreclosures of primary residences and business premises passed without incident on Thursday with the demonstrators dispersing by around 6pm.

Property tax reform discussions continue

Discussions on major reforms of the Cyprus property tax system continued today with Finance Minister Harris Georgiades urging MPs to pass legislation before parliament's summer recess.

Swiss francs loan landmark decision

The Cyprus Competition and Consumer Protection Service has ruled that a Swiss francs loan agreement between Alpha Bank Cyprus and two UK residents breaches the unfair terms in consumer contracts law.

Loan sale bill passed by whisker

The bill administrating the sale of loans was has been passed by the Cyprus parliament by the narrowest of majorities although it remains to be seen whether it meets with the approval of the troika.

Call for higher IPT discounts

Opposition political parties DIKO and DISY called for a bigger discount on Immovable Property Tax (IPT) on Monday arguing that the state stands to collect more revenue than required.

Banks to recoup loans by ‘hook or crook’

Banks must find a way to recoup loans granted to insolvent developers once 'trapped' properties are released to home buyers, Interior Minister Socrates Hasikos said following a joint session of the House interior and finance committees.

Insolvency service ‘inundated’

The newly established Insolvency Service, which was set up by the Cyprus government as part of the insolvency framework agreed with the troika, has been inundated with requests for information.

Guidelines on restructuring loans

The Cyprus Debtors Association has published detailed step-by-step list of guidelines on how borrowers may restructure their loans and advising them of their rights if they are being pressed by banks.

Hidden mortgage breakthrough

Interior Minister Socratis Hasikos has announced that the government intends to introduce legislation to resolve the 'hidden mortgage' problem that leaves thousands of buyers unable to get Title Deeds.

Foreclosures legislation effective from Friday

The Cyprus parliament has passed the regulations controlling property foreclosures; the law will come into effect tomorrow, smoothing the path for the resumption of bailout loan payments.

MPs focus on foreclosure regulations

Cypriot MPs are continuing their discussions on the rules regulating the auctioning of properties that will enable the new repossession laws, which were passed in April, to come into force.

Title deeds saga likely to be kicked down the road

The fate of the title deeds law which the President refused to sign will be decided by the plenum on Friday, although it seems likely that MPs will kick the can further down the road again.

Pledge to protect paid-up buyers

Following President Anastasiades rejection of the 'home buyers protection bill' the Interior Minister has instructed the House of Representatives to draft a bill to protect paid-up buyers from repossession.

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Cyprus’ largest ever housing project will help low-income families

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