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Cyprus Parliament Votes to Reduce Property Transfer Fees
As a measure to boost the Cyprus Property Market and encourage growth, the House of Representatives have voted to reform the Property Tax Law through the reduction of Property Transfer Fees. Taxand Cyprus gives a view of the changes and implications to businesses in Cyprus.
The fees charged by the Department of Lands and Surveys for the transfer of immovable property are as follows:
|Value in Euro|| Rate %|
|Up to 85.430||3|
|From 85.431 to 170.860||5|
In accordance with the new bill, the following changes were introduced to the Property Transfer Fees:
- For those who paid VAT on their house purchase, no transfer fees will be payable
- For those who did not pay VAT when they purchased their house, property transfer fees are to be reduced by 50%
The above changes also apply to those who submitted applications under the Town Planning Amnesty.
The bill does not have retroactive effect, however it does apply in cases where a title deed is not issued within 6 months upon submission of a contract of sale to the Department. The above reform applies only for a period of six months. The Cyprus Government is in the process of amending and restructuring the real estate taxation system as a whole, and according to government officials this process is anticipated to take three to six months.
The above reform comes a month after the House of Representatives voted to reduce the VAT rate from 15% to 5% for first time house purchases, a clear sign that the Government is trying to stimulate the slow moving property market.
Your Taxand contact for further queries is:
T. +357 22 699 222