12% tax shared title deed

[Reyntj]

Please keep us updated to date with your valuation price that they give .

[benjaminbutton]

Two weeks prior to all this bloody nonsense commenced I had this property valued for a quick sale i.e. 6th - 11th months. It would be interesting to see how the two compared if the Tapu were to come.

[alphamike]

BB the Tapu don't come out to value your house. They use some kind of a programme they have and Google maps to do the valuation, so I have been told.

[benjaminbutton]

I remember when we had been in the house about 9 months, two blokes from the Tapu did in fact come round. They stood in the garden, spread the architects drawings on the ground and had a chat. Just before they left they asked if the house next door was the same as ours? I told them it was absolutely identical, so they ticked a box, thanked me for the coffee and drove off. That was obviously prior to Google maps!!!!!

[Medjoul1]

BB, they did the same with ours when my parents were having a holiday here. I assumed it was for final approval?

[benjaminbutton]

Maybe I have final approval and don't know. That would be a turn up wouldn't it!!!???

[Medjoul1]

benjaminbutton, if you have your house file to hand the piece of paper is;
Yollar Ve Binalar Duzenleme Yasasi

It should state the name on the Kocan, District, Village, Mahalle, Build file number etc with a KKTC stamp and signature.

Happy hunting!

[benjaminbutton]

Sounds familiar, it could very easily be one of dozens of A4 sheets of paper signed, dated and scrawled on that I've been given in the past 20 years. Will have a sort through, when I'm feeling brave enough!!

[Jeremy S]

I understand that Tapu bases its valuation on similar properties sold in your area and then charges you that or the contract price if more.

[Reyntj]

That's my understanding Jeremy it used to be tax on tapu valuation which usually came in significantly lower . Now it's the higher of contract price or valuation that was the new law which came in with the tax increases .

[alphamike]

The new tapu evaluations are eye-watering, well for my place anyway. Am absolutely sick, there is no fear of me being able to sell for Tapu valuation. I have never felt so badly about the corrupt practises in this country as I do now. I know this doesn't just affect Brits, but how would the TC's in UK feel if they were victimised like this? It really affects those of us who bought many years ago very badly financially. Could have stomached a 12% hit on purchase price, but this is horrendous.

[nannieannie]

An update on the Tapu system. Unfortunately for us it it not going to work.
1, We are in UK and are unable to return by the deadline so cannot visit the land registry to give our intention to pay.
2, The Vendor (well known developer) is not going to pay the capital gains tax (stopai), so we will still not be able to pay the 12% tax

On Naomi Mehmet facebook page today:-

On 21st May 2024, the TRNC Government introduced new legislation under which all purchasers who had received their permission to purchase prior to the new legislation coming into force are required to take title to their property within 6 months of the new legislation coming into force.
Under the new legislation, in situations where it is not possible for a purchaser to take title to their property within this 6-month period due to the fact that the separate, individual title deeds or the interim individual deeds (known as ‘Kat İrtifak Koçanı’ in Turkish) for the property have not yet been issued, both parties (vendor and purchaser) must pay their transfer of title taxes within 60 working days of the new legislation coming into force.
According to information obtained from the Land Registry, the new system for making payment of the taxes in accordance with the new legislation is now up and running.
The final date for making payment of the taxes or registering your intention to do so with the Land Registry is 19th August 2024.
According to the Land Registry, in order to make payment of the taxes, the Land Registry valuation forms which are used for Contracts of Sale registrations, rather than the Land Registry valuation forms which are used for transfer of title, must be filled in and submitted to the Land Registry, together with the following documents:
- Stamped Contract of Sale
- A copy of the Council of Ministers’ decision confirming that the purchase permit application has been granted (your lawyer can provide you with the decision number and the copy of the decision can then be obtained from the Land Registry using the decision number)
- Passport/ID card copies for all parties and powers of attorney for all parties as applicable
Once the valuation has been carried out by the Land Registry, the vendor must first pay the capital gains tax (stopaj) at the Tax Office. If the transaction is subject to VAT, the VAT must also be paid or the VAT invoice (known as ‘fatura’ in Turkish) must be presented to the Tax Office at the same time as the payment of the stopaj tax.
Once this has been done, the purchaser can then visit the Land Registry to make payment of the Land Registry transfer fees.
The Land Registry transfer fees in all cases, regardless of when the Contract of Sale was signed and/or registered at the Land Registry are now 12% of the Land Registry valuation. In the case of purchasers who purchased after 10th February 2023 and who have already, therefore, paid 6% towards the Land Registry at the time of registering their Contract of Sale, only the remaining balance of the Land Registry fees, after deduction of the 6% paid at the time of the registration of the Contract of Sale, will be payable.
The Land Registry has confirmed that, in situations where it is not possible for the payment of the taxes to be completed by 19th August 2024, provided that the purchaser visits the Land Registry by 19th August 2024 together with the above documents and registers their intention to pay the taxes, the Land Registry will add them to the list and give them a number

[Reyntj]

Alphamike we have 2 flats to pay . I'm citizen so don't have limit problems . I only have myself to blame as I could have paid only 1 % a few years back . I keep putting off getting the valuation and finding an excuse . I even went and got the forms . We are lucky I suppose as we only have to pay 6 % but I suspect the valuations will come in at a lot more than we paid 6 or 7 years ago . Did your valuation come in at market value do you think for a similar villa with individual title . They always use to come in 20-30 % minimum lower but it's highly subjective ..a finger in the . Perhaps leeway for locals ...heaven forbid !

[Orbit]

Alpha Mike - we haven’t been to get a valuation yet, and unfortunately what you are saying is what we feared. I bought mine way back in 2005. Can I ask what % of your contract sales price the tapu valuation worked out at and roughly when you bought. I don’t need to know how much, just % and how old the contract is. It will help me and others on my unfinished site to know if it’s ‘worth’ paying, as we probably wont ever be able to get full title deed, and if they are giving ridiculous valuation to villas that are actually worthless then I’m not paying.
Also, even if paid my understanding is that we still have to get the full title deed within a certain time or else it all becomes null and void. Did anyone else hear this? I am so sorry for all of us caught up in this fiasco.

[alphamike]

Orbit am afraid that I don't have good news for you. Valuation for mine is almost 4 times contract price. Contract was in 2006.
Deadline is apparently now Monday, despite being told it was November. Impossible to get everything sorted out by then.
I don't want to say anything else at the moment, as I've got all this rubbish in my head, and I don't know whether I am coming or going at the moment. Don't want to pass on any duff/erroneous information.

[Orbit]

Wow that’s completely crazy, alphamike, and thank you so much for taking the time to answer. It helps us a lot, even if it isn’t what we all want to hear. All the best to you.

[Reyntj]

I asked the builder yesterday presuming he was aware of other similar flats valuations and he indicated the valuation was double my contract price from 2017.

I did buy it resale and at the time there where no deeds so the price I paid reflected this . Cant really argue with the valuation price today as from what I can see it isClose to the minimum price that one might be able to sell it for.

I could be wrong but it seems the state has a cunning wicked plan. As from august 19 you have 2 years to sell on your property if you haven't taken title. Failing to do so will lead to cancellation of your contract and 500 min wage fine . Seems madness until you ask if the contract is cancelled surely the property reverts back to the seller? But imo that's not the states intended outcome and they will seize all the properties in lieu of the fines. Hey presto homes for locals controlled by the state . Just my guess work on the trajectory here.

[alphamike]

You are welcome Orbit, sorry it wasn't good news.

Reyntj. Afraid that current tapu valuation is way above what houses are selling for, about £100,000 over going by recent sales and they were before this new law came out, so not rushed or in a panic.

I don't think that you are wrong with the state having a cunning wicked plan. I read recently in one of the local papers (I think) that the state intended to use 5% of money from property taxes from foreigners to build 600 social houses. The way things are going, they won't need to build them, and that may have been their plan all along.
As I've mentioned before, their would be an outcry if this happened to TC's living abroad, and wouldn't be allowed. I've lived happily here for years, and have put up with all the hoops that they put us foreigners through, without too much grumbling. This is the absolute pits now, am absolutely disgusted what's going on, through no fault of my own. There are so many of us in this or similar situations, just wonder how many.

[alphamike]

Just been told that there's been a 60 day extension published in Resmi Gazette.

Edited to add 60 day extension runs from 19th Aug.

[lily10]

Yesterday I put a post on Facebook about all these probems, please have a look at my posts and comment if you can, because I think if we can all stick together and let them see how many there are of us, it may help. So far, the response has been overwhelming.

Lynn Donnelly Facebook, British residents, TFR AND north cprus expats 2

[benjaminbutton]

I don't do Facebook, but am a member of TFR and BRS. I do so agree with your views, on top of all that trying to look after a sick husband is not exactly doing my own welfare a lot of good either,

[Reyntj]

https://kibrisgazetesi.com/tasinmaz-mal ... -uzatildi/

60 day extension . Oh I see alpha posted already

We went on Thursday .
My wife managed to.blag 1 property valuation there and then . A 1+1 above a shop in karakum.we paid £24 k.10 years ago came in at 1.75 million TL. C £40 k. When we bought it was cheap and the seller needed money urgently . I was happy with the valuation ...

I appreciate this thread is for shared deeds and that valuations for shared deed may not be taking into account the current low resale value.

I intimated state might have plan to take property but I think their first aim is to collect taxes and not have this system of perpetual contracts . There may well be further extensions I just can't see them refusing to accept the tax payment & there may well be legal challenges if they attempt to cancel contracts and fine people. It's not a lot of solace to people with shared deeds and others who have other issues but moving forward the system will eventually be more robust for new buyers and less will find themselves in this predicament. But they should have had these rules in place in the first place and the huge fees lawyers charge the law should be changed so that they have a duty of care to the client like the UK .

[JoandJelly]

For clarification, the 60 day extension is 60 working days. Also, according to the Land Registry and confirmed my Naomi Mehmet, once you have paid the 12% tax if you fail to obtain your kocan within 6 months the taxes paid will be forfeited.

[ljarvo]

In case any of you are in the same boat

Our permission to purchase was rejected.

The Districts Land Office are saying that purchasers who are not able to transfer deeds due to the fact permission to purchase is not granted are exempt from the new legislation….

Not sure where that leaves us but thought I would share …

[Tanky]

Hi Ijarvo. That is a very interesting answer you were given. That also adds to the total confusion we all have. As this one does not look too taxing to sort out maybe the BRS would like to get involved as I am sure there are many of their members in this boat. We can but hope. Good luck all

[Dalartokat]

In case any of you are in the same boat

Our permission to purchase was rejected.

The Districts Land Office are saying that purchasers who are not able to transfer deeds due to the fact permission to purchase is not granted are exempt from the new legislation….

Not sure where that leaves us but thought I would share …

What was the reason given why your PTP was rejected…as I understood from years back only a property near Military or if one had a criminal record was rejected….then my understanding was the only option was to stay and never own the property or not buy the property at all or sell the property back to the developer and they also had a period of time to sell it and hopefully refund your money. Also you didn’t need the PTP to sell to anyone else.
I cannot understand why now they are saying you are exempt, exempt from what? If one does not have PTP or Title deeds does one still carry on living there or can you rent the property out.

It’s a question now for the present Government which is for someone like the BRS to propose.

[kerry 6138]

Sure I read somewhere the new law included a rule making only 7% of district population allowed to be foreign owned?
If PTP was refused you would have a period of time(cant remember how long) to reapply and the cost would increase?

[ljarvo]

Dalartokat - sorry for delay - we believe it was the army that rejected us maybe due to some Army general living near us! I feel its because they don't want Pre74 title owned by foreigners now ....

[Dalartokat]

Dalartokat - sorry for delay - we believe it was the army that rejected us maybe due to some Army general living near us! I feel its because they don't want Pre74 title owned by foreigners now ....

Sorry to hear this, can you carry on living there, or are they going to make it awkward for you, especially financially.

[ljarvo]

We have left - we moved a year ago to Portugal ….

[Dalartokat]

We have left - we moved a year ago to Portugal ….

Smart move then.