Transfer Tax and Immovable Property Tax

[slwright]

Hello Louise

Could you explain to me what the difference is between these two taxes? I am really confused. My lawyer said that when we get our title deeds we would have to pay "transfer tax" of 3% (we are buying in joint names)

Our contract states that "as from the day the Purchaser has been in possession of the said property the purchaser undertakes to be responsible for and to pay all Government and local authority taxes leves duties or charges raised on or in connection with the property hereby sold, and in the event the Vendor pays them then the Purchaser hereby undertakes to reimburse the Vendor accordingly. The tax payable under the provision sof Laws 24/80-1987 shall be the responsibility of the purchaser provided always that the Vendor will submit to the Purchaser the relevant documents for the purpose to apply for refund of such payments for this special tax"

Hoping to hear from you soon.

Kind regards
Sheila

[Nigel Howarth]

Hi Sheila,

I can answer these for you:

Property Transfer Fees (or property transfer tax) is a one-time charge payable at the time ownership of the property is transferred and registered in your name - when the Title Deed become available.

Immovable Property Tax is an annual tax paid on the assessed 1980 value of the property. (There is no tax to pay if the 1980 value of your property is assessed as being less than CYP 100,000.)

(If you click on the underlined words above, you'll find some more detail).

Some people also pay an annual Immovable Property Town Tax - this varies depending where your property is located.

Regards,

[slwright]

Thank you Nigel, much appreciated.

Regards
Sheila