Draft law abolishes cyprus' "property transfer fees"

In an attempt to stimulate the Cypriot property market, the island’s MPs unanimously voted in the House of Representatives this week to abolish or reduce its official “Property Transfer Fees” for a period of six months.

The politicians have also proposed that:

· For those who pay VAT on their house purchase, no transfer fees will be payable.

· For those who do not pay VAT on their purchase, property transfer fees are to be reduced by 50%.

The draft law will be effective for six months, until the Cyprus government submits a full proposal to the House.

“Property Transfer Fees are based on the Land Registry’s assessment of the market value of a property at its date of purchase. However, using its discretion to reassess the amount of Transfer Fees payable, the Land Registry relies on its own historical data in a way that cancels out any transfer tax benefit of a ‘bargain-buy’, which can result in double the expected amount being levied,” Cyprus Property News told OPP.

Source: OPP.org.uk