Kibkom North Cyprus Forum

My management company have just informed me of this

The Government increased the transfer of title from 3% to 6% last year. They have now done a U-turn and we are pleased to report that the transfer tax has now been reduced to 3% again.

Not a lot of good to me as the deeds have not been finished yet but has any one else heard this?

regards

Mick

Hope it's true, my neighour will be pleased as they refused to pay the increase and it's the only thing stopping them getting their Kojan.
Be good to get confirmation

This has been reported on at least two other forums but with no substantive source at present. Hopefully this will arrive in the next couple of days. Maybe it will be reported in CT tomorrow so eyes open if you buy the thing.

Exchanged contracts 6 weeks ago, can you believe my luck,but it is ours now.

Micklm good on the Management company, what site you on ?

Hi we are on ea Terra Reserve Tatlisu and Doneghy and Beyler are the management company

Nice site thanks for reply.

Its in the paper today so it
MUST be true.Tongue in cheek.

Most certainly hope so.

We purchased and found out whilst things were going thro that the tax was now 6%. If it has gone back down to 3% that is very good news indeed.

I had this email from my solicitor

Dear Client, 23.11.2012
Re: Revision of transfer charges in regard to immovables.



Further to my e-mail dated 2.11.2011 in regard to the same when the government removed 3% of transfer charges for foreigners and imposed 6%, now happy to inform you that revision took place and all foreigners like TRNC Citizen once in a lifetime can exercise 3% transfer charges.
The by-law issued in the official gazette dated 20.11.2012 only served to Kyrenia Lands Offices on 21.11.2012 after 12:00 noon and I have seen the acknowledgement by Kyrenia Lands Offices.
I invite all the purchasers who received their permission to purchase to proceed with the transfer process. This came to us as a suprise and without any prior notification so for the purchasers who chose to exercise the transfer process and paid 6% transfer charge in the past one year, I understand their position but unfortunately nothing can be done.

My lawyer also confirmed the 3% tax today.

great news and a great early Christmas present- it makes me about £4500 better off.
Although unfair increase in the first place as I bought when it was 3%-the fact that it takes them upwards of 2 years to decide whether you can 'buy' the place you have handed your cash over for is/was totally unfair.

Get the signing done asap, who knows when it will rise agin to 10% or worse to help pay off the national debt.

If only they would speed up the PTP process or drop it all together we could all cough up earlier. Then all taxes would be paid a lot quicker and help with the balance of payments.

Deniz1 wrote:If only they would speed up the PTP process or drop it all together we could all cough up earlier. Then all taxes would be paid a lot quicker and help with the balance of payments.

I agree. If the PTP process moved quicker it would really help. Those purchasing would feel more secure, whilst not a given the market may pick up and more money into govt coffers. Very simplistic I know but just seems sensible to me. We are waiting PTP confirmation and would gladly hand over the necessary funds now...... But the machinery of govt moves slowly

Posh-I agree, if you could pay at the relevant rate when you purchase (On the basis that if PTP is refused they refund it + Interest) it would be simpler and less of a lottery.
Also as you say it would get cash into the empty coffers.

It is good news indeed regarding the 3% drop in the tax level, the situation I am in at the moment is that I have my PTP number however my house is not yet completed, it is in the final stages and I would estimate that a good 3-4 weeks work could finish it, however that estimate is in the real world and we are in Cyprus so I would not like to even guess as to when it will be finished, my question is this; can the transfer tax be payed prior to actually transferring title deeds, or does it have to be done during the actual transfer process, after build completion?

Have they only done this u turn now so that they think everyone will rush and pay their taxes and they will then have enough money to pay the 13th wage?

My understanding is as follows.

On full completion of the property you will need to apply for final approval and if neccessary parcelisation.

On completion of both you can then apply for Titlle.

The parcelisation process can take up to 12 months or so .

Hope this helps.

Art
Thanks for that it looks like the prcess is a lottery purely depended on circumstances at the time of title transfer, thats a bit of a bummer as I was hoping to take advantage of the 3% rate, I will just have to hope that it stays as it is for a while yet!

You can with the agreement of seller do transfer at any time, you do not need the building completed. What art says is for you to get house added to the kocan.

You would get a shared kocan, so would need others, if any on the site, to join.

I would recomend you take this route so that (a) you have title to your land and (b) you get to pay tax at current rate. Obviously needs full agreement of all involved but well worth it to get peace of mind.

As my build is a one of with only my plot of land involved, does that mean that if the builder agrees the transfer can be done without the need for a shared kocan?

If only your own plot obviously easier. I cannot give a definitive answer but I would follow it through with lawyer and builder. In addition try http://www.hbpg-trnc.net this is home buyers pressure group web site from there you can contact Marion Stokes who will give you a definitive answer.

Cyprusishome
Thanks for the info.

Did mine this morning with my solicitor in Girne at new price no problems at all