Title deeds gift transfer

[Chrissy]

Hi Nigel,
My grandmother owns an apartment in Paphos and she is going to sign the property over to myself and my sister as a 'gift'.

Will me and my sister have to pay any tax and if so how is it calculated?
Also what information/identification do I have to bring with me from England?

Regards
Chris

[Nigel Howarth]

Hi Chris and welcome to the forum.

That's a good question - I'm not sure I can answer it.

Currently no Property Transfer Fees area payable if the purchaser (you) did not pay VAT when you purchased the property - and there's a 50% reduction if you did pay VAT, providing the transfer takes place by 31 December 2016.

The problem is that you and your sister will not be paying anything and I don't know how the Land Registry will assess the fees you should pay (if any).

Under normal circumstances you and your sister would pay between you 0.4% of the 1980 value of the property as recorded on its Title Deed - which I hope your grandmother has. So I suggest that you bring this with you. (I expect the 1980 value of an apartment would be in the region of €25,000 - so you would need to find €100.

In terms of identification - your passports and evidence proving that you are actually her granddaughters - birth, marriage certificates, etc. Suggest you ask your a solicitor what would be needed.

Regards,

[Chrissy]

Thanks for your quick reply Nigel,

I appreciate your help. Do you know of any phone numbers I can ring to find out for sure? Maybe Cyprus land registry? Or could the Cyprus high commission in London tell me?

Also, would it be a good idea to open a joint Cypriot bank account with my sister to pay for the bills/taxes of the property? (As we live in England)

Kind Regards

[Pantheman]

Currently no Property Transfer Fees area payable if the purchaser (you) did not pay VAT when you purchased the property - and there's a 50% reduction if you did pay VAT, providing the transfer takes place by 31 December 2016.

Nigel you got this backwards

1. If vat was paid upon purchase - no transfer fees to pay

2. If no vat paid upon purchase - 50% reduction on TFs.

Now given that the original owner has passed it on, I would have thought that the NEW (you and your sis) owners would pay the reduced amount, but anything is possible. As long as the deeds are issues by 31/12/16.

Good luck.

[Nigel Howarth]

Nigel you got this backwards.

Thanks Pan - put it down to my old age

Regards,

[Pantheman]

Nigel you got this backwards.

Thanks Pan - put it down to my old age

Regards,

You, old? Never! :)

[Chrissy]

Hi again, I am travelling to Cyprus with my sister and grandmother in May 2016 to sign the deeds over but I have a few questions, just so I know what to expect when I get there.

- what is the telephone number of the Cyprus land registry?

- what is the procedure to sign the deeds over? (And how long would me and my sister have to be in Cyprus for, until everything is completed?)

- when will we receive the new title deeds?

Sorry for all the questions, I just need to have an idea of what to do when I get to Cyprus.

Many thanks
Chrissy

[Nigel Howarth]

Hi Chrissy

You can find the telephone number of the Paphos Land Registry office and directions at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... enDocument

The process for transferring the property and the timescale is described on pages 45 & 46 of the Department of Lands & Survey's Citizens Charter that you can find at http://cdn.cyprus-property-buyers.com/w ... harter.pdf

I suggest that you instruct a lawyer to act on your behalf. The British High Commission publishes a list of lawyers that you can find at https://www.gov.uk/government/uploads/s ... reters.pdf

Does your grandmother have the deeds to the property?

Regards,

[Pantheman]

Hi again, I am travelling to Cyprus with my sister and grandmother in May 2016 to sign the deeds over but I have a few questions, just so I know what to expect when I get there.

- what is the telephone number of the Cyprus land registry? This will not help you.

- what is the procedure to sign the deeds over? (And how long would me and my sister have to be in Cyprus for, until everything is completed?) Apart from the transfer form that needs completing, you have to have a tax clearance certificate which could take a couple of weeks depending on your tax office. When all the necessary have been obtained, you need to go to the land registry with whomever you are transferring to to get the transfer made.

- when will we receive the new title deeds? A document, that is a copy of the record held at the land registry will be sent out and it could take weeks, but once the deed at the land registry is done, it is done, the paper copy is just that. It is not like the UK where the deed bundle follows the house.

Sorry for all the questions, I just need to have an idea of what to do when I get to Cyprus. You could instruct a lawyer, but if you will not be here, you may need to leave them Power of Attorney to act on your behalf. Don't expect this to happen on a single trip to Cyprus.

Many thanks
Chrissy

See my replies in RED above, hope that helps.

[Chrissy]

Thank you Nigel and Pan, I really appreciate your help!

Also, do you know if i will need to get a Cyprus ID card?

[Nigel Howarth]

Also, do you know if i will need to get a Cyprus ID card?

No - you do not need a Cyprus ID card.

Regards,

[Chrissy]

Hi again :)

So I know the first thing I need to do is obtain a tax clearance certificate.
I also understand that we would need to provide receipts of payments of things like immovable property tax, sewerage board tax, town rate and communal rate.

Will I have to show these receipts in order to get a tax clearance certificate? And if these receipts are not at the apartment come May, how can I get them? (There are no outstanding payments on the property)

I also understand I have to complete Forms N.313 and N.270. Please could you explain the contents of these forms?

And is this: http://www.moi.gov.cy/moi/DLS/dls.nsf/A ... penElement Form N.313? Or is this an old form?

Kind regards,
Chrissy

[Nigel Howarth]

Hi Chrissy

Your grandmother will need to get a Tax Clearance Certificate from the Tax Office. She will need to take her Tax Identification Code (TIC) which she should have received when she registered to pay Immovable Property Tax (IPT).

If she hasn't registered for tax she can do this at the Tax Office and then pay any IPT she may owe to the Tax Office. (I believe the Paphos Tax Office is very close to the Land Registry.) She should bring the Title Deed of the property with her.

She will also need to get a letter/certificate confirming that she has paid local town/property tax to the Municipality or the Community in which the property is situated.

And she may need to visit the Paphos Sewerage Board and get a similar letter/certificate from them confirming that she has paid.

(I pay my sewerage tax and local property tax at my community office - I don't receive a separate bill from the sewerage board.)

The form N.313 you have is the latest one I can find, but I haven't been able to find an N.270 online. I don't have English translations.

It may be easier for you to appoint a lawyer. The British High Commission publishes a list that you can find at https://www.gov.uk/government/uploads/s ... reters.pdf (but as Pan has mentioned you and your grandmother could appoint him/her to act on your behalf under a Power of Attorney as it can take some time to get everything organised.)

Regards

[Chrissy]

Hi again,

I am due to arrive in Cyprus next week to go ahead the the transfer of the property, but something has come up which I need advice on.

To my understanding, All the taxes on the property has been paid. BUT, there is a maintenance fee for the flat that has not been paid since 2007. (The outstanding fee is unknown, but I am guessing it is a few thousand euros).

I have also just been made aware that the person who the maintenance fees are owed to has been trying to take my Grandma to court.

Does this have to be paid in order to obtain a tax certificate and go through with the transfer of the property?

If it does need to be paid, how can I go about paying it?

Is there any other advice you can give me on this situation? As I will be in cyprus next Saturday and I need to know what my first move should be.

Thanks in advance
Chrissy

[Nigel Howarth]

Hi Chrissy

You do not need a Tax Certificate for common expenses fees. It shouldn't affect you.

There is a possibility that the person who's wanting the maintenance fees may have lodged a claim against the property for the amount owed. BUT before they could do this they would have to take your grandma to court and get a judgement in their favour. But from what you say it doesn't sound as if they have done this.

Regards,