Immovable Property Tax

Do you have a problem getting your Title Deeds?
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Duped
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Joined: 15 Jul 2012 20:57

Immovable Property Tax

Post by Duped » 17 Jul 2012 23:34

Hi Nigel

We bought a villa for €325,000 in 2005 which was completed in 2007. Extras such as air conditioning were a further €34,000; a total of €359,000.

Title deeds are now available apparently showing a 1980 valuation of €33,500. This figure is important for ongoing municipal tax and I have queried how this is calculated but am told simply it is the Land Registry valuation - end of. How can I check that this is correct?

The tax requested by the developer is €670 based on 4%pa of €33500 for 2007-11 and €268 @ 8% for 2012. How much should I be able to claim back from the Revenue?

Is it possible to find out the Registry valuation for transfer fees prior to a visit to their offices to obtain the Deeds? Roughly how much should we be paying for joint ownership please?

Many thanks for you help.



Nigel Howarth
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Re: Immovable Property Tax

Post by Nigel Howarth » 18 Jul 2012 09:58

Hi Duped and welcome to the forum.

There is no way that you can check the Land Registry's valuation of €33,500. The Land Registry uses historical data to assess this value, but it is not made available to the public.

The tax the developer is asking is correct (it's actually 0.4% and 0.8%) - and providing he provides you with the necessary paperwork, you should be able to claim all of it back from the Inland Revenue.

As for your Property Transfer Fees, the Department of Lands & Surveys has an on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform . Using the calculator I make the transfer fees €15,051.18, but you might like to check.

Regards,


Nigel Howarth
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Duped
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Re: Immovable Property Tax

Post by Duped » 18 Jul 2012 11:03

Hi Nigel

Thank you very much for your help. Sorry about the typos on the percentages,

The Land Registry should publish this historical data so everyone can check the arithmetic. We are taxed upon a mystery figure and bearing in mind their desperate need to raise as much money as possible we wonder at the accuracy. Why all the secrecy? If the valuation is correct then justify it. All that comes to mind is Rip Off Cyprus which may be entirely unfair.

Presumably we also cannot find out the valuation for Transfer Fees prior to our visit to the Registry office. A waste of everyone's time if they come up with some arbitrary cloud cuckoo land amout as reported on your forum by many others. At a practical level we need to know the sum of money to pay so why all the secrecy.

How much we regret getting caught in the hideous Cyprus property web; at every turn there is another entaglement.

Kind regards

Duped



Nigel Howarth
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Re: Immovable Property Tax

Post by Nigel Howarth » 19 Jul 2012 09:18

Hi Duped

Cyprus is a very secretive society - I don't know why. The problem affects Cypriots as well as non-Cypriots.

Regards,


Nigel Howarth
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Duped
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Immovable Property Tax

Post by Duped » 22 Jul 2012 22:53

Hi Nigel

The UK is probably just as secretive as Cyprus despite the Freedom of Information Act because polititicians never want the people to know what they are up to.

However secrecy in tax calculations for individuals is a different matter and certainly contrary to the UK Code of Practice.
http://www.hmrc.gov.uk/charter/charter.pdf

Now that Cyprus is a leading light in Europe I wonder if there is anything that can be done to encourage the Land Registry etc to get up to date and justify their valuations?

Many thanks

Duped



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Re: Immovable Property Tax

Post by Nigel Howarth » 22 Jul 2012 22:58

Duped wrote:Now that Cyprus is a leading light in Europe I wonder if there is anything that can be done to encourage the Land Registry etc to get up to date and justify their valuations?
That will need a change in the law.

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Duped
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Re: Immovable Property Tax

Post by Duped » 22 Jul 2012 23:43

Hi Nigel

As you know the Dept of Lands and Surveys' Vision Statement says they would like to inter alia "improve and reengineer their role to best serve the needs of the citizen in accordance with the laws and regulations prevailing nowadays in the European Union."

Clearly the intention is to be more open eventually but as you have pointed out they say their success will depend on major changes to the legal system. UK laws seem to be subordinate to the EU but no matter.

I do not know if and when new laws will be passed but once again it looks as though fair treatment in Cyprus will only occur if enough pressure comes from Europe if sufficient numbers complain.

Kind regards

Duped



Nigel Howarth
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Re: Immovable Property Tax

Post by Nigel Howarth » 23 Jul 2012 11:56

Duped wrote:fair treatment in Cyprus will only occur if enough pressure comes from Europe if sufficient numbers complain.
Thanks to the efforts of the Cyprus Property Action Group, which has enlisted the support of many MEPs, the EU is on the case.

I hope to be able to publish an update on progress later this week or early next in Cyprus Property News.

You may also be interested to hear that Bill Cash raised the subject in the lower house last Tuesday. The Foreign Office Minister, Jeremy Browne, replied:
  • Mr Cash: Will the Minister commit to looking into the question of the fraudulent title to land? Many thousands of English – British – people have land in Cyprus. I raised that matter when I visited. Will he commit to taking that forward, to ensure that there is a proper resolution in the courts so that these titles can be remedied?

    Mr Browne: I will happily undertake to task the Department with looking into that. The Minister for Europe or I will write to my hon. Friend.
(It’s recorded in Hansard)

Regards,


Nigel Howarth
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Duped
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Immovable Property Tax

Post by Duped » 23 Jul 2012 22:27

Hi Nigel

Thank you for all the info and I will await developments with interest.

Quite rightly the focus is on Title Deeds but it will be good if the lack of transparency in public bodies could be pressed as well to prevent Cypriots and non-Cypriots alike being left substantially out of pocket by over zealous officials.

Kind regards

Duped



Duped
Posts: 8
Joined: 15 Jul 2012 20:57

Title deeds

Post by Duped » 25 Aug 2012 10:51

Hi Nigel

As previously advised Aristo say our Title Deeds are ready for collection. All we have to do is turn up with copies of our passports, the stamped (duties paid) sales agreement and the money for the transfer. This all seems straightforward but we are wondering if we should have a trustworthy lawyer present to oversee proceedings.

Do you have a view on this please?

Also, can you think of any other papers we need to take to the Land Registry or things we should particularly check when we are there please?

Thank you very much for all your help.

Kind regards

Duped



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Re: Immovable Property Tax

Post by Nigel Howarth » 26 Aug 2012 13:02

Hi Duped

The process is very straightforward - no need to have a lawyer present.

Just make sure you take your passports with you as well as copies.

Regards,


Nigel Howarth
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Duped
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Re: Immovable Property Tax

Post by Duped » 26 Aug 2012 17:50

Hi Nigel

Thank you very much for your early reply; we are greatly relieved to receive your advice and will proceed (we hope) to get our deeds. We'll let you know how we get on.

Many thanks.

Duped



Nigel Howarth
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Re: Immovable Property Tax

Post by Nigel Howarth » 26 Aug 2012 22:36

Hi Duped - You're welcome - I hope all goes well.

Regards,


Nigel Howarth
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Duped
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Re: Immovable Property Tax and Title Deeds

Post by Duped » 22 Sep 2012 22:11

Hi Nigel

As promised a further report. Three weeks ago we visited Aristo's HO and were first required to pay some 1000 euros IPT incurred by them since the villa was finishd in 2007. We signed papers (we understood nothing as they were in Greek) which had been preprepared following earlier provision of our sales agreement and passports.

The following day we were called to the Land Registry by the Aristo representative. We were expecting to be taken to a smoke filled room (for a lengthy argument about valuation) but were simply directed to the counter in reception. A pleasant young lady stated in English what we had bought and confirmed the purchase price on which the transfer tax was calculated. We signed forms to say we had not used an estate agent and had not paid VAT. We were then given a payment slip and sent to the cashier's window. Two credit payments were taken, without handling fees, and the anti-climatic process was over in a matter of minutes.

The Registry telephoned within a week to say the Deeds were ready for collection. When we eventually found the right room and after production of our payment receipt two slim documents were extracted from a pile on an untidy desk. It really was a surreal end to a process which has been confusing and irritating in equal measure. We received our Title Deeds some 5 years to the day after our villa was completed. However after reading of the average 12 years to obtain deeds and the massive backlog we count ourselves very lucky.

We are told by Aristo that we will only get back 20 % of our IPT and we will write more fully about that interesting exercise as matters develop.

Kind regards

Duped



Nigel Howarth
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Re: Immovable Property Tax

Post by Nigel Howarth » 30 Sep 2012 16:22

Hi Duped

Pleased to hear you got your Title Deeds - and only 5 years!!!

I recently got a paper from the EU, which contained the following: “The average time for obtaining a title deed [in Cyprus] is just under 12 years and more than 200,000 owners are affected by this.”

You can read the complete paper at http://cdn.cyprus-property-buyers.com/w ... 101_en.pdf - it was published in July.

Please keep me posted on the IPT progress. Hopefully Aristo will have given you all the necessary paperwork to submit a claim.

Regards,


Nigel Howarth
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