Kibkom North Cyprus Forum

What is the current VAT/property tax

Which?

This might be helpful to you.

http://www.peymanerginel-lawfirm.com/in ... ?showall=1

KDV (VAT) is charged at 5% of the sale or valuation price.

But which is it Ozankoy? The house might be valued at X and the sale price achieved might be XX. Its always confused me. Devil is in the detail

Sophie,
If tax office think the sales price is to low they will base the KDV on there valuation, just in case there was an additional cash transaction.

So those poor souls who are accepting low offers because they are desperate to go back to UK will have to wait for Valuers to go through the motions before they can complete their sale. Am I interpreting that correctly?

sophie wrote:So those poor souls who are accepting low offers because they are desperate to go back to UK will have to wait for Valuers to go through the motions before they can complete their sale. Am I interpreting that correctly?

I believe that as long as you get a valuation done by a firm who is trusted by, and has a good working relationship with the Tax office and Land Registry, there should not be any problem in getting 'your' figure accepted (unless you're obviously 'trying it on', of course!).

That was my experience.

In any case, there is no reason to hang about if you need to be off - there is such a thing as 'power of Attorney' you know

Sorry I should have clarified when I mentioned valuation I meant valuation undertaken by the Tapu (land registry) in cases where your builder has not charged it on the contract price & given you a receipt.
VAT is only paid once per property unless the seller is a company, so hopefully for many of these 'poor souls accepting low offers' it will not come into the equation. Also if these people are accepting low offers they can make it a condition that the purchaser is responsible for any future taxes so a line is drawn under the transaction from their point of view.

Ozankoys, you're quite right, of course.
I missed that point completely, and was thinking of the transfer fee...

Well Keith as you are so very knowledgeable about so many things this just means you are human & not an encyclopaedia (if such books still exist? ). Have a good evening at last it seems to have stopped raining.

ozankoys wrote:Well Keith ... this just means you are human...

I never doubted it !