Revision of 2013 Valuation

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The Bear
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Joined: 09 Jan 2016 20:09

Revision of 2013 Valuation

Post by The Bear » 12 Mar 2019 17:23

I have today received a 'recorded delivery' letter from Dept. Land & Surveys dated 13 Feb. (post in this village is all too often like that). It refers to the date of purchase of my (resale & non-estate) house over 4 years ago and proposes a revised valuation as at 01/01/2013 which is a few grand (3%) less than the previous valuation but remains at more than 135% of the actual contract price. When purchasing I had 'a conversation' with staff members at DLS in Limassol regarding the basis of calculation of the transfer fees which involved a 'frank and productive' (but lengthy) exchange of views before they (almost resentfully) agreed to use the contract price. This seems to have triggered a formal revaluation process which has lurked at the bottom of an industrious, highly-trained specialist's in-tray for some years before prompting a few manuscript scribblings on a standard letter template.

There is no hint of attempting to revisit transfer fees (and no suggestion at the time of transfer that the fees were provisional or on account) so, given that annual IPT is now zero, is there any point in appealing this? They give me 30 days from date of letter before it is deemed to be a finalised valuation. The receipt I signed for the postman seemed to be undated (when I signed it) so there's no telling when it will be recorded as delivered and I will probably find that Friday 15th is, indeed, the last day to lodge an appeal (not that it's clear from my understanding of the letter how I would do that).

I suspect that a valuation significantly closer to actual start-2013 market value will be difficult to achieve and can't see that it would actually make any difference (to me, the DLS or anyone else) - but I would be very happy to receive education on this matter.



Pantheman
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Re: Revision of 2013 Valuation

Post by Pantheman » 12 Mar 2019 23:00

The general valuation of 1.1.2013 is not the market value of the property. The 1.1.2013 valuation is used to calculate sewerage charges if you are connected and from 2017 it will be used to assess Municipality taxes as I understand it.

This is the only time this valuation figure is used.

What you paid and what is says have no real correlation, don't let it trouble you.


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Nigel Howarth
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Re: Revision of 2013 Valuation

Post by Nigel Howarth » 13 Mar 2019 01:11

The value of an estimated 2 million properties are to be re-assessed. The procedure is underway and should be completed by the end of June.

As Pan has said, the valuation is not the market value - it's the taxable value which is used to calculate property-related taxes.

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Nigel Howarth
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The Bear
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Re: Revision of 2013 Valuation

Post by The Bear » 13 Mar 2019 15:12

Nigel Howarth wrote:
13 Mar 2019 01:11
As Pan has said, the valuation is not the market value - it's the taxable value which is used to calculate property-related taxes.
I seem to have been slightly misunderstood. As implied in my final paragraph, I know full well that it is not some statement of market value but a separate, notional valuation - somewhat akin to the UK's council tax banding and earlier rating system.

This village is a very long way from any mains sewerage system and the village charges are not sensitive to the valuation figure so, as suspected, the valuation figure has no direct financial consequences for me (given no annual IPT nowadays) so it does, indeed, seem pointless for me to seek a further reduction - especially given that they've only moved it by a paltry 3% on their own volition.

I imagine that the idea of a 'standardised'/'normalised' valuation system was intended to provide (for IPT, CGT, etc.) some sort of relative benchmarking to help identify and reduce the number and scale of abuses associated with transactions that are not at arm's length and/or not at open market value. Without annual IPT and given the reducing scope and level of transfer fees I idly wonder whether it still retains sufficient utility or general relevance to readily justify the costs of operation and maintenance - but it is the nature of such things that they long outlive their usefulness.

The valuation is notional and isn't even relevant for transfer fees purposes but it's interesting to note that, in dealings with me, DLS staff regarded it as indicative of market value. I argued the basis of the initial DLS assessment down from the notional valuation to the contract price and a subsequent article in July '15 reported that "if the Director of the Land Registry considers that the price stated on the contract of sale does not reflect the market value of the property at its date of purchase he may, at his discretion, charge the full Property Transfer Fees based on the market value of the property at its date of sale less the price stated on the contract of sale" (pretty much the other side of the same coin). The date of my purchase is quoted in the letter I've received as the date of an appeal against the valuation - which suggests that DLS themselves initiated the appeal for some reason and it wasn't part of a general revaluation (though it still took well over 4 years to process).



Pantheman
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Re: Revision of 2013 Valuation

Post by Pantheman » 13 Mar 2019 18:01

My Parting words are, for the present there is no IPT charged, but this may change in the near future and the valuation that'll be used will be the 2013 valuation and not the 1980 valuation.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
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Re: Revision of 2013 Valuation

Post by Nigel Howarth » 13 Mar 2019 19:43

Hi Bear

As Pan has said, the taxable value is used to assess sewerage charges, which includes surface water collection. It's also use to calculate the 'local' property tax imposed by your Community or Municipality.

The last time taxable values were assessed was in 2013 - and there was a process by which you could challenge the valuation - see Hasikos admits valuations mistakes.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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