Kibkom North Cyprus Forum

We are just in the process of having the title deeds to the property we purchased 2 years ago transferred into our names and taking advantage of the reduction in transfer fees from 3% to 1%. However, this morning our solicitor in TRNC has informed us that they have been notified that this 1% fee only applies to properties registered for the first time and not re-sale properties like ours! It seems that although some re-sale properties have had titles transferred at the 1% rate the new title owners are now being contacted by the land registry with bills for an additional 2%. My solicitor has told me that the 1% rate is to support construction on the island and is encouraging us to complete the transfer of title at the 3% rate as problems can arise if the title remains in the vendors name? Does anyone have any thoughts on this? Thanks

I am currently waiting for the figures for mine and am waiting for the response from my solicitor about the implications of it being a resale. Who is your solicitor?

Our solicitor is Christopher at Naomi Mehmet & Partners

Sane as mine!

The only other tax would be the transfer tax which has dropped to 1% until
August + 23 TL Title deed fee and property tax.

Kind Regards,


Sent last week from a law firm in girne to me .........I sold they handled it and the enquiry was for another property to buy .
Interesting as who you name tried to lift my leg re tax on capital gains .....sat there worked it it on full amount ,as opposed the the capital gained .

Kav

The first poster is referring to the Transfer tax from 3% to 1% but seems that this reduction is not for resale properties. It is only where the title has not been transferred in the first instance. Are you saying that your 1% was on a resale when the title was already in your name? Please can you also clarify what you are saying about the capital gains tax. Thank you.

I had the title in my name and had paid all taxes.
I went to complete my transaction and was told that capital gain was taken on the full amount ,eg the sale price .
I had to point out that this isn't gain ,but the sale price and the gain was in fact the profit .

My experience of the advocate system in TRNC ,well questionable to say the least .

Could you please give some further clarification. You say you had already paid all the taxes etc. so your property was therefore a resale and are you saying that on the sale the new purchaser of your property only paid 1% for the transfer of title?

Kavenkoy wrote:I had to point out that this isn't gain ,but the sale price and the gain was in fact the profit.

Was this accepted?

Why not pop along to the Citizens Advice in Karakum. I am sure that Pembe will be able to give you a truthful answer.

Message 9 JJ

Yes it was accepted then I believe I had the right on the first sale to waive that fee .

Kav

The 'Capital Gains' tax is a misnomer as Stoppaj the Turkish word should be translated as 'Sales Tax' as it is based on the whole sale or valuation amount. Everybody has a one off right of exemption providing you are not selling more than one donum & if there are trees on your Kocan you have to pay tax on them as you are presumed to have received income from them.
The Purchase Tax is 6% with a one off exemption to 3%. At the time it was announced there would be a discount to 1% they publicised that this would only apply to new properties ie ones being sold for the first time. I do not think that statutes are written here so often what is announced by Ministers does not actually filter down to proper legislation for the various departments eg Land Registry to follow hence the confusion.

I don't want to spoil the party here but the first 2 posters refer to a "solicitor" Are they sure this is the correct title and that this person is registered with the Bar as a professional solicitor?

There's a guy works down the chip shop swears he's Elvis..........

Msg 10 is the only way to end the speculation on this thread and any other questions for these two posters. I speak from experience and would not want anyone to have the same problems I encountered. Please be very careful who you trust

13 of course you are right Paddy ,the terminology used incorrect but it's a word we use and know that's all.

I would some are questionable regarding their practices and their " in pockets attitude "
Interesting when we bought we used a " advocate ,brief , legal eagle , sollicitors " lol in lefkosha
Why ? Well she was new ,she did like estate agents who tried it on ,she was nicknamed the Rottweiler with lipstick from a well known agent in girne who was showing us around a property .
I didn't buy off them ,but did use her and she was excellent .

Kav

I have just received an email from Naomi Mehmet's office which confirms that I am entitled to take advantage of the 1% reduction despite my property being a resale. All taxes were previously paid by the vendor and the transfer of title is in his name and I will be the second title holder.

So the first poster states that their lawyer informed them that it is not 1% but 3% on a resale but the last poster states that their lawyer has e-mailed them telling them that it is 1% on their resale Both from the same layers firm where can I get a definitive answer,also can has anyone had a valuation done recently and is this the actual price paid?
Confused or what!!!!!!!!!!!!!!!!!

13roman58 wrote:So the first poster states that their lawyer informed them that it is not 1% but 3% on a resale but the last poster states that their lawyer has e-mailed them telling them that it is 1% on their resale Both from the same layers firm where can I get a definitive answer,also can has anyone had a valuation done recently and is this the actual price paid?
Confused or what!!!!!!!!!!!!!!!!!

Welcome to the TRNC!

As I said earlier maybe a visit to Citizens Advice in the row of shops by Erdener Supermarket will throw some light!! Pembe is very good, and has, I think, put the wind up one of two 'solicitors' over here.

I also meant to add that I have been sent the valuation that the Solicitors have received back from the valuation office and this clearly states 1% of the contract price.

Have emailed our advocate and asked them for a progress update on our transfer and confirmation about the rate being charged. Ours is a resale.

Had budgeted for 3% when we purchased 2.5 years ago. Having got PTP a year ago our advocate advised we hold off the transfer as she was aware of some possible changes to the rate being charged for transfer of title.

As we had already planned on having to pay the 3% rate there was no harm in us holding off for a while.

Things are now progressing so will wait for the response.

One thing is certain and that is something will need to be paid and as its the TRNC it will not be straightforward. But thats the way it is and having spent many years living on the island in a previous life we believe we understand the culture both in the south and the north. Things take a long time, are often not 100% clear and nothing now comes as a surprise.

Love the place for all its quirkiness.

my house is a new build so I expected to pay the 1%. my solicitor said no it is 3% asking for clarification he wrote

"the land offices made some interpretation to it, that it does not apply in properties in shares,lands, fields etc. So your transfer will be 3% although new purchase and not resale"

he told me the 1% only applies to new build on a piece of land that will not need to be shared by several properties.

has anyone paid the 1% on land that will be shared amongst several properties.

trent04
I take it you are talking about properties that are on a shared Kocan? I have just found out that my property Kocan will be a shared one, I was hoping to take advantage of the 1% my next visit to the island, looks like that might not be the case, can anyone verify?

Hi Aitchie, you are correct.
It is a shared Kocan.
Probably like most properties in the north.
Again, as / you I would appreciate the experiences of others who shared a Kocan and were new builds.
Thanks for your reply

I visited my builder this morning and while I was there he phoned the Land Office to check the facts. They confirmed to him that the 1% only applies to new builds on a single plot - shared plots are not permitted nor are single plots if they are only parcellised as part of the transfer process. If your plot is already single then you may be OK.

However, there is another factor. Unlike the last time they gave a discount, this time they have done nothing to help the builder. As mine explained, with the current parlous state of the industry cash flow is a huge problem for him and he cannot afford to pay his share of the fees (6.25%) for everybody who now wants tp proceed. Like all builders he borrowed money to finance his operations and with properties unsold he has a huge monthly interest bill that has sucked up cash that he admits he should have saved for transfer fees. That and he feels responsible for his staff and is reluctant to make them redundant as he perhaps should. I don't want to get on his case because I understand the difficulties of running a business - but neither do I particularly sympathise with him. Nonetheless - it is a factor that may similarly affect others.

JBA
Thanks for the clarification, it looks like a 3% payment from me so no hurry to pay the 'tally man' then, especially when my builder is expecting me to pay his taxes as well!!
I may just cool the beans and see if there is any Gov't legislation change in the near future that may help those like me with the builders gun to their heads, fat chance I hear you say!!

I have just, this morning, received further clarification from my Solicitor:

There has been some confusion at the Land Registry about which properties the discount applies to. However, the latest guidance that we have been given is that the discount applies to properties where the property was first registered on the title deed by the current seller. In your case, although you are purchasing from private individuals rather than a construction company, the property was registered on the title deeds whilst in the name of the sellers and this is shown on the title deed. Therefore, it is our understanding that the discounts will apply to your transfer.

Thanks for all the information. Seems a little bit of a mess! Never mind all that is certain is we will pay something!

Posh in Devon

"A bit of a mess".

Couldn't agree more.

Surely it can't be that difficult for clearly defined rules.

When people say " it is my understanding" I shake my head in disbelief.

I can't feel any sympathy for these builders. Mine is a well know "name" here in the TRNC and 7 years ago he was pleading poverty and refused to pay his share of the taxes. My advocate tried everything to get him to do his duty to us, but backed by his own advocate he absolutely refused. When one got away with with 7+ years ago, they all jumped on to the band wagon. He looked us straight in the face and said "you want your paper work, then you pay my taxes". I had to sit on my hands to stop myself walking across the road and giving him a good slap. Sympathy with builders, not a shred!!

trent04 wrote:Posh in Devon

"A bit of a mess".

Couldn't agree more.

Surely it can't be that difficult for clearly defined rules.

When people say " it is my understanding" I shake my head in disbelief.

As they say.......It is "Cyprus....my friend".

I have no understanding of how the decisions are made at ministerial level in the TRNC and eventually passed down to be implemented. What seemed straightforward (3% tax drops to 1% tax) seems now to be wrapped up in a cloak of vagueness.

Mind you how often here in the UK have we heard things announced on budget day that will be implemented in 6 mths to a years time which seemed straightforward only to find that there are a lot of hoops to jump thro when it finally becomes law. I believe the recent pension announcement about taking your pot as a lump sum to do as you wish made in the UK budget this year which come into effect in 2015 will not be as straightforward as at first thought!

I bought my property 2 years ago it was a re-sale the previous owners had their deeds and they were required to pay the stopaj or transfer tax not me. They lodged the money with the solicitor I was using as they were returning to the uk and when my PTP came through she paid it at the land registry office with me there.

Just to update on my position, I received this from my solicitors yesterday:

We are pleased to confirm that transfer of title has now taken place and the property is registered in your name at the Land Registry upon 1%. Please note that it will take 3-4 months before the title deeds are issued in your name by the Land Registry.

Hi Judyvin

Are you on a shared Kocan?

No I am not on a shared Kocan but mine was a resale. The deeds were already registered in the first owners name, taxes, vat etc paid some 6 years ago. I am the second named on the title deed and have just paid 1%.