Buying a property, transfer tax question

[bugsy]

We are buying a villa and need to ask about transfer fees. Are we right in saying that as at this present time the more people on the deeds/contract the less the tax will be. We are thinking of adding 2 of our children, as well as us, to take advantage of the individual allowances. The original price of the villa was substantially more than we paid and the Registry may charge us at the higher value so it is important. Thank you in anticipation.

[Nigel Howarth]

Hi bugsy and welcome to the forum,

If you are considering buying a property it will be worthwhile including your children in the Contract of Sale as this will reduce the Property Transfer Fees payable.

(The Department of Lands & Surveys has an on-line calculator that will help you work out the potential savings at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform .)

Also any Immovable Property Tax liability will be reduced as you will each own a quarter of the property.

Please ensure that you all four of you make Wills as the laws of inheritance in Cyprus are different to those of the UK.

Regards,

[bugsy]

Thank you for your prompt reply. I will check out the situation with wills as we do not have one yet in Cyprus.
Regards.

[nlp]

It may also be worth taking into account the scenario of children's later marriage then divorce , could the ex-spouse sue for part of villa?

We didn't include our children for that reason, good job we didn't.

[Nigel Howarth]

It may also be worth taking into account the scenario of children's later marriage then divorce, could the ex-spouse sue for part of villa?

No - the former spouse couldn't sue as he/she would have no claim on the property.

However, if one of the children married then divorced - and then died, a former spouse would have a valid claim on the share owned by that child. BUT this would only happen if the child died intestate, i.e. without making a Will.

It is therefore VITAL that anyone who purchases property in Cyprus makes a WILL as soon as they have signed the contract - otherwise the Cypriot laws on inheritance and intestacy will prevail.

Regards,