Transferring property to a relative in Cyprus is a process that requires attention to detail and an understanding of local law. In general, the process is not complicated and does not take long. Here are the steps and issues to consider when registering a property for a relative.
Preparing the necessary documents
- The first step in the re-registration process is to gather all the necessary documents. If everything is ready in advance, you will not have to spend a lot of time fumbling around and going back to the Land Department. What the package of documents includes:
- Valid passports or other identity documents for all parties.
- Documents confirming ownership of the property (e.g. deed of sale, title).
- Marriage certificate or other proof of relationship, if applicable.
- Approval from the lending institution if the property is mortgaged or pledged.
Property valuation
A recent valuation of the property is required for re-registration. This is necessary to determine the taxes and fees that will be levied upon transfer of ownership. The valuation is often the cadastral value rather than the market value. This can always be clarified for your benefit!
Notarisation
The next step is to have the deed of sale notarised. The notary will certify the authenticity of the signatures and documents and confirm that all parties are acting voluntarily and knowingly. World practice in recent years is full of news of property transfers to pets, but this has not happened in Cyprus. Apparently, notaries do not lie dormant.
Payment of Taxes and Fees
A property transfer tax must be paid before the documents are submitted to the relevant government authorities for registration. The amount of the tax is based on the assessed value of the property and may vary depending on whether the transferee is a very close relative or just a relative.
Registration at the Land Registry
Now it's time to go to the oldest government office on Aphrodite's island. Once the necessary taxes and fees have been paid, the package of papers is presented to the Land Registry to officially register the transfer of ownership. This is the final stage after which the relative becomes the new owner of the property.
Transferring ownership of a property to your next of kin in Cyprus is relatively straightforward. As a reminder, the following are included in the single-family category
- Husband and wife;
- Natural and adopted children;
- Parents;
- Grandchildren;
- Biological and step-siblings.
The procedure provides for somewhat simplified requirements and conditions for these kinship groups, making it much easier to transfer property within the same family.
Methods of transferring property
When it comes to close relatives, there are several ways to transfer ownership:
Sale of the property
This method involves the conclusion of a standard contract of sale and the payment of the value of the property by the buyer. The peculiarities of this method are as follows:
If the buyer is married or cohabiting, the property purchased automatically becomes joint property at the time of purchase.
It is necessary to seek legal assistance and pay state fees.
The process of re-registration by sale takes longer than by will or gift.
Gift of real estate
It is possible to re-register a property by drawing up a deed of gift, which implies the transfer of the property free of charge, as the same owl said. The peculiarities of this method are as follows:
- It is necessary to draw up a deed of gift with the help of a licensed Cypriot lawyer.
- The payment of government taxes and duties, which are lower than in the case of a sale.
- If the donor is married or cohabiting, the property can be valued over time by the joint owner's share.
The tax on the gift of real estate is as follows:
- 0% if the property is transferred from parents to their children;
- 0.1% for gifts between spouses;
- 0.1% for gifts between blood relatives up to the third degree of consanguinity, such as brother to sister or great-grandmother to great-granddaughter;
- a flat tax of €50 is levied on gifts to guardians.
Real estate inheritance
This is the formalisation of the right of inheritance by means of a will that requires probate. Things to consider:
- The property only becomes the property of the heirs after the opening of the inheritance.
- It is necessary to go to a notary to obtain a document confirming the right to inherit.
- The period for re-registration is limited to six months from the opening of the inheritance proceedings.
- Possible legal proceedings with other claimants to the property.
- Zero tax.
Direct transfer of rights
This is the simplest and quickest method, requiring an application to the Cyprus Land Registry with all the necessary paperwork and fees. The property becomes the property of the relative as soon as the documents are signed and the changes are made in the registry. At the same time, the foreigner is traditionally required to confirm the right to own the property by submitting an application to the Council of Ministers and obtaining the necessary approval.
Consultation with a lawyer is recommended to determine the best method of re-registration in each case. The scope and amount of taxes may change over time. Today, title fees for re-registration range from 3 to 8 percent. And inheritance tax has been abolished since 2000.
Re-registration of a relative's property on Aphrodite Island - a process that requires careful preparation and understanding of local legal and tax nuances. Yes, it is possible to formalise everything on your own, but consultation with lawyers and notaries will help to avoid possible difficulties and mistakes in the registration.
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