Is there offer an express option for title transfers?

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oneness
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Is there offer an express option for title transfers?

Post by oneness » 03 Nov 2007 05:33

I know some countries, for an extra charge, will process a property transaction in a few days instead of the normal timescale. I understand that in Cyprus the normal timescale between registering a sale contract and receiving title deeds is 4 weeks(?) But does the Land Office offer the option of completing the sale sooner for a charge?

This question could be important to anyone wishing to avoid the 15% buyer's VAT which I believe will be introduced on 1st January 2008.



Nigel Howarth
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Re: Is there offer an express option for title transfers?

Post by Nigel Howarth » 03 Nov 2007 12:14

oneness wrote:I know some countries, for an extra charge, will process a property transaction in a few days instead of the normal timescale. I understand that in Cyprus the normal timescale between registering a sale contract and receiving title deeds is 4 weeks(?) But does the Land Office offer the option of completing the sale sooner for a charge?

This question could be important to anyone wishing to avoid the 15% buyer's VAT which I believe will be introduced on 1st January 2008.
I know of people in Paphos who have been asked to pay an 'acceleration fee' by their developer to speed up the issue of their Title Deeds - but this will include the land and the property on the Deeds. I don't believe such a process exists for land sales (or even if the one in Paphos is legal).

But if you know someone, or know someone who knows someone in the Land Registry, it might be to you advantage to have a word with them :wink:

Providing the Title Deed for the land you want to buy is available, the transfer of Title can be done very quickly, although some Land Registry offices are busier than others!

The Government is planning to delay the introduction of VAT on land sales until mid-2008 and is currently negotiating with the EU to allow a derogation until 2010.

We still don't know how the VAT will be collected, or what categories of land will be subject to VAT, or where the Tax Point will be set.

But my guess is that the VAT will be collected by the Land Registry at conveyance of Title and that the Tax Point will be set at the date a contract of sale is deposited at the Land Registry.

But I must stress that this is my 'guesstimate', the Government may have quite different ideas.

Regards


Nigel Howarth
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oneness
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Post by oneness » 05 Nov 2007 06:19

Thanks for that. I had thought that it was just a rumour but I should give some weighting to your opinions. So I looked and found some news that seems to confirm what you are saying. :
Cyprus wants to delay VAT on land purchases until 2010
2007-09-18 07:20:20
Financial Mirror

18/09/2007

Cyprus has asked the Commission for permission to delay the imposition of 15% Value Added Tax (VAT) on land purchases, limited ranged of foodstuffs and medicine until mid-2008 or 2010 instead of January 2008.

Finance Minister Michalis Sarris said a number of other EU member states had made a similar request and is confident that the Commission will give its response before the year-end.

He clarified that the measure would only refer to land purchases made by developers and is not intended to have an impact on prices, even though he admitted that the news that VAT would be imposed on land has had a significant effect in the direction of land prices.

Cyprus has also asked to delay the imposition of 3.1 cent tax on petrol goods from January 2008 until mid-2008.

Opposition DISY party MPs Lefteris Christoforou and Maria Kyriacou criticized the government’s tax policies, which they claim has raised the level of taxation from CYP 700 mln to CYP 1.5 bln, without a corresponding increase in benefits.

Source : http://news.pseka.net/index.php?module=article&id=7419
Whether this news is up to date, I dont know, I dont read the Cyprus papers every day.

Still, some questions are left wide open :

-1- "the measure would only refer to land purchases made by developers" - by "the measure" is the article refering to the tax's imposition or the request to postphone it ... I would guess its the latter but its not clear

-2- no indication is provided in the article about the chances of success of the request

-3- there is little reassurance for people who would like to decide now whether to buy or sell. A response by "end of year" is hardly music to the ears with the tax due to be introduced the next day... But perhaps that's the idea of it?!?



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Post by Nigel Howarth » 05 Nov 2007 11:02

oneness wrote:Still, some questions are left wide open :

-1- "the measure would only refer to land purchases made by developers" - by "the measure" is the article refering to the tax's imposition or the request to postphone it ... I would guess its the latter but its not clear

-2- no indication is provided in the article about the chances of success of the request

-3- there is little reassurance for people who would like to decide now whether to buy or sell. A response by "end of year" is hardly music to the ears with the tax due to be introduced the next day... But perhaps that's the idea of it?!?
Yes, there are a lot of unanswered questions!

1. I guess that "the measure would only refer to land purchases made by developers" refers to the imposition of VAT. So land sales to individuals would be exempt. But you could read it either way.

2. That's up to the EU - and reading the article, it looks as if the decision is expected to be made by the end of the year. I read an article in the Cyprus Mail on this subject that said "A similar demand by Cyprus had been rejected in the past".

3. Yes, it does fuel speculation, which helps to push up prices.

I guess we'll just have to wait and see. If I hear of anything I'll post a message.

Regards,


Nigel Howarth
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oneness
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Post by oneness » 07 Nov 2007 02:38

Thank you, Nigel, for your prompt replies. Do you mind if I post some posts on this topic to the Cyprus Forum? Perhaps they can add something....



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Post by Nigel Howarth » 07 Nov 2007 14:30

oneness wrote:Do you mind if I post some posts on this topic to the Cyprus Forum? Perhaps they can add something....
No problem - you ca even post a link to this forum if you wish :wink:

Cheers,


Nigel Howarth
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Re: Is there offer an express option for title transfers?

Post by Nigel Howarth » 11 Feb 2008 16:48

Hi oneness,

Just a (much belated) update on the VAT situation regarding land:
  • Although originally scheduled to be introduced in January 2008, the Cyprus Government successfully applied to the EU to delay its introduction until August. Furthermore, the Government is currently negotiating with the EU to allow a derogation until 2010 (along with a number of other EU member states).
Regards,


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