Advice

[AB2017]

Good Afternoon Nigel,

I have tried to send you a private message through the website but it keeps getting knocked back. I am after some advice regarding an apartment i purchased quite some time ago but due to a disagreement between myself and the developers i have never completed on but still have 50% of the property purchase price invested. I have recently been sent an "Immovable Property Tax" form/certificate by the developer which i don't understand. I have tried to get answers from my lawyer but don't seem to be getting anywhere. The lawyer advised at the time not to complete on the purchase as, as per the contract the developer could not produce anything concrete ie: a certificate that there was no mortgage on the land. This issue has been going on for a long time and i really want to get some closure on it. Thanks for your time in advance.

[Nigel Howarth]

Good morning AB2017 and welcome to the forum.

Immovable Property Tax is assessed on the 1980 value of a property, but from 2017 it is abolished.

If you read through your Contract of Sale, I expect it contains a clause that's similar to the following:

“As from the day the Purchasers are in possession of the property, they undertake to be responsible for and to pay all the Government, municipal and local authorities’ taxes, levies, duties or charges (if any) raised on or in connection with the possession of the Property hereby sold.”

If your contract includes this clause then you will need to pay the developer the reasonable amount of IPT he has paid for the apartment you purchased. Furthermore you should have registered the property with the Tax Department in 2014 (see Paying Immovable Property Tax 2014) and paid any IPT due directly to the department rather than the developer.

It's very easy for you to check whether there is a mortgage on the land - you'll find a guide at New title search procedures in Cyprus. This will cost you €20.00.

If there is a reference number on the form/certificate that the developer sent you, can you please post it and I'll see if I can find what it is.

Regards,

[AB2017]

Hi Nigel,

Thanks you for your reply. Is there any way i can speak to you directly rather than through the forum? the situation is a little bit more complex than i really want to share but could do with an unbiased opinion.

Thanks

[Nigel Howarth]

You can contact me via http://www.news.cyprus-property-buyers.com/contact

Regards,

[Pantheman]

Good Afternoon Nigel,
i have never completed on but still have 50% of the property purchase price invested. I have recently been sent an "Immovable Property Tax" form/certificate by the developer which i don't understand.

If you have never completed, then I don't see how you can be charged IPT, since you are only liable for IPT once the property is in your name.

When you say never completed I assume the contract of sale was never deposited at the L.R, therefore, the developer is still the owner!!

[AB2017]

Hi Pantheman,

Thanks for your reply. The Sale Contracts were deposited by my lawyer at the District Land Office of Larnaca and i have a receipt for that. However i have never fully completed on the property but have a lot of money invested. I know the apartments are built as they are now showing on Google Earth. I haven't had chance to get out to inspect through one reason or another but want to know how i stand. I have had contact with my Lawyer but he doesn't seem interested at all. If you can offer some assistance or advice in anyway please give me your contact details. Thanks