Cyprus Property Forum for Buyers, Sellers & Investors

Hi Nigel

Great site and great work you are doing.

I have been notified by my developer that my title deeds are about to be released ,i purchased a one bedroom property under joint names for 58000 + Vat cypriot pounds what are the deeds going to cost as there seems to be a lot of confusion.Will the title deeds be charged on the 58000 or the total plus the vat.
Would i also need to collect in person and would a solicitor be needed as my original solicitor logded my details with the land registary

Kind Regards

Andy Goulding

Hi Andy and thanks for your comments.

Property Transfer Fees are calculated on the assessed market value of the property at its date of purchase. This assessment is carried out by staff at the Land Registry and is based on what similar properties were bought for at the same time as yours.

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

I've just done a quick calculation and, as you bought in joint names, your Transfer Fees should be around €2,793.

There have been cases where the Land Registry has valued properties at significantly more than their market value. There's an in-depth article about this in my magazine at http://www.news.cyprus-property-buyers. ... /id=004712 - so if they do try to overcharge you significantly, you should object.

There is no need to use a lawyer - you can pay the transfer fees yourself. You will need to take along your passport and some cash - your developer should take the rest. (see 'The Completion Process' at http://www.cyprus-property-buyers.com/l ... ancing.htm )

Regards,

Thanks Nigel for your reply

If the developer has he will contact me in a couple of weeks ,what time scale am i looking at for going to Cyprus to pay for my deeds,so i can plan roughly when i will have to go to Cyprus.
Also in your personnel opinion how long is the swiss franc going to stay as strong against the euro as was thinking about borrowing the money in the uk to pay my swiss franc mortgagae off when the franc weakens to a more managable exchange rate.
Sorry for all the questions this is the last one ,i currently let my property what steps should i take regarding tax issues,as i let my property last year also and the people wrecked my apartment and it has cost 1000 euros to put right can this and mortgage payment s be taken in to account during tax calculations.

Kind Regards

Andy Goulding

Hi Andy,

As soon as the developer lets you know that the Title Deeds are available, you should get over to Cyprus and pay the Property Transfer Fees within 60 days.

I wish I could answer you question on the value of Sterling vs the CHF. If I could, I'd be a multi-millionaire by now I'm in the UK at the moment and saw my financial advisor last Wednesday - he was optimistic that Sterling would strengthen (but I guess if he knew the answer he'd be a millionaire as well).

For your UK Income Tax return, there are forms for declaring income and allowable expenses for overseas property lettings. You can find more information on this at http://www.direct.gov.uk/en/MoneyTaxAnd ... G_10013347 - I'm not a tax expert but I believe you can claim for maintenance and repairs to the property - but you will probably need need to supply the invoices and receipts.

Regards,

Hi Nigel,

I note that, in your reply above, you state that 'you should get over to Cyprus and pay the Property Transfer Fees within 60 days'. Is there a particular reason for this? My developer has informed that my deeds are available from 1st Sept but I can't get out to Cyprus until mid November.

Thanks,

Brian

Thanks Nigel

Hopefully collecting the title deeds will be the turning point of a traumatic couple of years although i dont think we are out of the woods yet.
In reply to Brian in my limited knowledge i am sure Nigel will confirm you have to collect within 60 days as the developer will be liable for more immovable tax on all there properties so need to get your property of their book, or you may be liable for more tax payments.

Thank again Nigel

Andy Goulding

[quote="Nigel Howarth"]

I've just done a quick calculation and, as you bought in joint names, your Transfer Fees should be around €2,793.


quote]





Hi Nigel - Is that what each person pays or the total Transfer Fee ??

Molly wrote:Is that what each person pays or the total Transfer Fee ??

It is the total Property Transfer Fees.

Regards,

Bnevi1 wrote:'you should get over to Cyprus and pay the Property Transfer Fees within 60 days'. Is there a particular reason for this?

My apologies - I should have said six months. The reason for this is as follows:

When your contract is lodged at the Land Registry, it creates a charge (an encumbrance) against the property that prevents the vendor from selling it to someone else. It also allows you to seek what is known as 'Specific Performance' - a 'quick' process through the courts, if the vendor refuses to transfer title of the property to your name once the Title Deed becomes available.

However, if you do not transfer the property to your name within six months, your ability to seek Specific Performance may lapse. If this were to happen and the vendor refused to transfer title of the property to your name, you would be involved in a more lengthy (and costly) court procedure.

You can red more about this at http://www.moi.gov.cy/moi/citizenschart ... enDocument

But even if you were to lost the ability to seek Specific Performance, your contract of sale would still be valid and the vendor could not sell the property to someone else.

(BTW. The sixty days I mentioned is the time limit for depositing a contract of sale at the Land Registry after it has been signed in order to be able to seek Specific Performance if it became necessary).

As Andy pointed out - until the property is registered in your name, the developer (as its owner) is responsible for paying Immovable Property Tax. And he could make things difficult if you failed to transfer the property to your name within the six months.

Regards,

Thanks Nigel.....

Hi Nigel

Hope you are well.

After a lot of false dawns i am now finally in a position to recieve my deeds but my developer has said i need to pay hte following charges for a 1 bedroom apartment

Immovable Tax (€14.000 x 4‰) €56.00 x 3 years = €168.00
Sewage (€14.000 x 5‰) €70.00 x 2 years = €140.00
Sewage (€14.000 x 5.70‰) €79.80 x 1 year = €79.80
Land tax (€14.000 x 1.5‰) €21.00 x 3 years = €63.00
€450.80
Interest €86.10
€536.90

Does this seem right to you,not happy with interest payment and only had possesion of property fo just under 2 years why do i have to pay 3.
Also they say i will not get a figure of how much tranfer fees i owe until the day of the meeting,therfore how can i appeal if i think they are over pricing my property as will only be in cyprus for a week.

Kind regards

Andy Goulding

Hi Andy,

I'm fine thanks - keeping busy.

Apart from the interest (€86.10) the figures look reasonable. I suspect the reason for the interest is that the developer did not pay one or more of the charges when he should have and the authorities have added a penalty for late payment - you should contest this.

I think the Land Tax is the local Property Tax payable to the Community/Municipality.

As for the 2/3 year problem. Take a look at your contract of sale - it should say when you become responsible for paying these taxes - from the date of signing the contract or from the date of delivery.

As for the Immovable Tax - you should be able to reclaim any overpayment from the Inland Revenue, providing the developer supplies you with the necessary paperwork. You can read more about this together with a letter from the Interior Ministry and the forms you will need to complete on my website at http://www.cyprus-property-buyers.com/law/tax.htm

Regards,

Hi Nigel

Thanks for your response

Also the house was bought in joint names ,but since we lodged this with the land registry we have got married will i just need to produce the marriage cert. to get the deeds in our new name?
Our Mortgage is in my wifes maiden name as the bank told us to leave it that way as we would incur costs will this have any effect on proceedings also?

You didnt really touch on what happens when we go the land registry, can we ask them beforehand what they value it at, as to make sure we have sufficient money to pay as dont want to turn up on the day and they overvalue the property and look stupid.

KInd Regards

Andy

Nigel Howarth wrote:Hi Andy,

I'm fine thanks - keeping busy.

Apart from the interest (€86.10) the figures look reasonable. I suspect the reason for the interest is that the developer did not pay one or more of the charges when he should have and the authorities have added a penalty for late payment - you should contest this.

I think the Land Tax is the local Property Tax payable to the Community/Municipality.

As for the 2/3 year problem. Take a look at your contract of sale - it should say when you become responsible for paying these taxes - from the date of signing the contract or from the date of delivery.

As for the Immovable Tax - you should be able to reclaim any overpayment from the Inland Revenue, providing the developer supplies you with the necessary paperwork. You can read more about this together with a letter from the Interior Ministry and the forms you will need to complete on my website at http://www.cyprus-property-buyers.com/law/tax.htm

Regards,

Hi Andy,

I suggest that you take your passports and marriage certificate with you when you visit the Land Registry. And I wouldn't change the names on your mortgage either.

You will only find out the Land Registry's valuation of the property when you do the transfer. If you feel that the Land Registry has overvalued your property, you can pay the Transfer Fees under protest and get them to carry out a detailed inspection and valuation of the property (but of course this will not be independent).

While they are doing this, you should get someone from the Property Valuers Association – see http://www.propertyvaluers.org.cy/index.php?lang=en to carry out an independent inspection and valuation on your behalf and submit it to the Land Registry.

If you cannot agree a valuation with the Land Registry after getting your independent survey done, you can take the matter to court. There is time limit of 45 days in which you can do this, but this is flexible.

Regards,

Hi Nigel

Think will prob end up just paying as long as not to expensive, and get the episode over with sure i have a couple more twists yet to come otherwise it wouldnt be Cyprus would it?

Thanks for your excellent response and hopefully next time we talk i will be in possesion of my deeds, just need the euro to kick that swiss francs backside and i will be sorted.

Cheers

Andy