Costs involved in selling a house

Questions about selling property
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Pippa
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Joined: 24 Jan 2013 14:32

Costs involved in selling a house

Post by Pippa » 26 Mar 2013 17:27

I cannot find anywhere a comprehensive list of the costs involved of selling a house, I understand that there is capital gains, stamp duty etc. and reimbursement to the developer of any taxes he may have paid ( I do not yet have title deeds) but need to put aside the necessary monies to meet these bills.



Nigel Howarth
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Re: Costs involved in selling a house

Post by Nigel Howarth » 26 Mar 2013 19:26

Hi Pippa

There will be no Stamp Duty to pay (this will be paid by your buyer). But you will have to pay:

Capital Gains Tax - this is calculated at 20% of the profit you make from the sale (indexed for inflation). There is a persoanl allowance of €17,086 and this rises to €85,430 if the property has been the main residence of the tax payer for a minimum period of five years. To take advantage of the full allowance, the land on which the house is built must not exceed 1,500m2. If it exceeds this size, you will pay tax on the percentage over 1,500m2.

Further allowances are granted for ‘Allowable Expenses’:
  • Property transfer fees.
    Stamp duty.
    Estate agent’s commission (but only if the estate agent is licensed by the Cyprus Real Estate Agents’ Association).
    Professional fees.
    Accepted capital additions and improvements - planning permission where necessary.
Indexation can be applied to the above expenses as well as the initial purchase price and must be submitted with invoices and receipts for the costs incurred.

Taxes - You have to show that you paid in full for service charges, utilities and immovable property tax.

To complete the sale you must present a 'Tax Clearance Certificate' from the Inland Revenue office showing that you have paid Capital Gains Tax, or that no Capital Gains Tax is due - and that you have paid all the taxes mentioned above.

Legal Fees - If possible, you should use an assignment/vesting contract. This avoids the problem of having to pay cancellation fees to the developer. (You can read more about this on pages 53 and 54 of the Department of Lands and Surveys Citizens Charter).

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Transmitter Man
Posts: 10
Joined: 24 Jul 2013 18:31

Re: Costs involved in selling a house

Post by Transmitter Man » 26 Feb 2016 16:27

Hello Nigel,

I note Pippa's post was dated 2013.

Have any aspects of your answer changed in the past three years?

We are going to be selling our apartment shortly here in Limassol.

One more question.

Where exactly can I find out about any unpaid IPT?

Many thanks.

David



Nigel Howarth
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Re: Costs involved in selling a house

Post by Nigel Howarth » 26 Feb 2016 20:24

Hello David

Nothing has changed over the past three years.

Regarding unpaid IPT - do you have the Title Deed for the apartment? If you do have the Deed there should only be this year IPT for you to pay (assuming you've paid in previous years where necessary). The Tax Office above the Central Limassol Post Office will be able to advise.

If you do not have the Title Deed, you may be obliged to pay the developer IPT since the year in which you took delivery. You'll need to check your contract of sale and if you are obliged to pay, speak with your developer.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Transmitter Man
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Joined: 24 Jul 2013 18:31

Re: Costs involved in selling a house

Post by Transmitter Man » 01 Mar 2016 11:28

Hello CDJ,

Of course the cost will vary for both seller & buyer surely however some fees are fixed such as land registry, taxes while others to some degree are negotiable such as conveyancing cost and estate agent fee.

You can shop around for a good deal with a lawyer and negotiate with most estate agents. Difficult to do the same with the government offices :-)

I must say from what little I've learned here in Cyprus estate agent fees do seem on the high side but I suppose it depends on how pro-active they are in finding you a buyer!

David



Nigel Howarth
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Re: Costs involved in selling a house

Post by Nigel Howarth » 01 Mar 2016 19:40

Transmitter Man wrote:In Cyprus estate agent fees do seem on the high side
Mainly because the market is so small and there are so many estate agents. In the UK an estate agent would be selling several properties in a week - in Cyprus they're lucky if they sell one or two/month.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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jameswhite
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Joined: 07 Apr 2016 09:45
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Re: Costs involved in selling a house

Post by jameswhite » 08 Apr 2016 11:39

Nigel Howarth wrote:
Transmitter Man wrote:In Cyprus estate agent fees do seem on the high side
Mainly because the market is so small and there are so many estate agents. In the UK an estate agent would be selling several properties in a week - in Cyprus they're lucky if they sell one or two/month.

Regards,
Yes, I agree with you that the demand for property in the UK is more as compared to the Cyprus.



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