Joint Ownership

Questions about selling property
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Spondoolies
Posts: 15
Joined: 30 Jan 2012 22:09

Joint Ownership

Post by Spondoolies » 31 Jan 2012 11:32

Hello Nigel

Can you provide some advice/information regarding joint ownership please. This is the scenanio. Mr & Mrs A jointly own a property with Mr & Mrs B, for which they have the title deeds. All live in the UK. Mr & Mrs B agree to sell their share to Mr & Mrs A. Can this transaction be done wholly in the UK and how (and at what cost) can the tile deeds be updated to reflect the change? Many thanks



Nigel Howarth
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Re: Joint Ownership

Post by Nigel Howarth » 31 Jan 2012 14:30

Hi Spondoolies and welcome to the forum.

The transaction is straightforward, but I doubt that it can be accomplished from the UK without appointing a lawyer based in Cyprus to act as a Power of Attorney on behalf of both couples.

Mr & Mrs B will need to pay any taxes owed in Cyprus - including Capital Gains Tax on any profit they make from the sale (subject to allowances) - and they will need to provide receipts showing that other local taxes, etc have been paid and complete some forms:

Transfer Requirements
Completion of Form N.270 (Declaration of Transfer of Immovable Property). The certificate of registration (title deed) of the immovable property, which is to be transferred, must be attached thereto. Where the transfer of the property takes place at a Lands Office other than the Lands Office of the District where the property is situated Form N.270 must be completed in duplicate.

Completion of Form N.313.
Production of the receipts of payment of all fees, charges and taxes payable for the property under transfer. Such fees, charges and taxes may be one or more than the following:
  • Immovable Property Tax.
    Capital gains tax.
    Receipts of payment for all the above taxes and duties may be obtained from the Internal Revenue Department).
    Sewerage Board Tax. (Receipt obtained from the Sewerage Board).
    Town rate. (Receipt obtained from the municipality in whose boundaries the property is situated)
    Communal rate. (Receipt obtained from the community in whose boundaries the property is situated)
Transfer
All documents mentioned above must be completed and signed by the interested persons and deposited with the Lands Office accepting the transfer.

Property Transfer Fees
Property Transfer Fees will be paid by Mr & Mrs A at the time of transfer and will be based on the market value of the property at its date of sale.

The Department of Lands and Surveys has an on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform

(These Property Transfer Fees are the Cyprus equivalent of the Stamp Duty Land Tax (SDLT) that you pay in the UK when buying property).

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Spondoolies
Posts: 15
Joined: 30 Jan 2012 22:09

Re: Joint Ownership

Post by Spondoolies » 31 Jan 2012 17:04

Hi Nigel, thanks for the prompt and detailed information. Regarding Property Transfer Tax if Mr & Mrs B are selling a 50% share do Mr & Mrs A still have to pay PTT on the full market value? Thanks again



Nigel Howarth
Site Admin
Posts: 2327
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Joint Ownership

Post by Nigel Howarth » 31 Jan 2012 17:14

No - their Property Transfer Fees will be based on the value of Mr & Mrs B's share of the property.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news


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