Members of the Cypriot Parliament unanimously approved a law exempting owners of real estate, which is mortgaged to the bank, from paying a tax of 0.4% in the case of selling the house to repay the debt.
It should be noted that the proposal was introduced by DIPA MP Alekos Tryfonides.
According to Tryfonides, this will help to reduce the volume of non-performing loans. Specifically, the law, passed retroactively, exempts borrowers from paying a fee when proceeds from the sale of real estate or transfer of shares are used to repay part or all of a troubled loan under a restructuring program. Meanwhile, fees paid between Feb. 22, 2021, and Nov. 17, 2022, will be refunded to those homeowners who used the money from the sale of their homes to reduce or pay off non-performing loans. Tryfonides said that the innovations will eliminate the gap that existed in the law and will help 3 thousand debtors who wished to take advantage of the restructuring.
Remember that on October 27, 2022, a law came into force in Cyprus establishing the obligation to pay a tax of 0.4% on all sales of immovable property and company shares from the fees paid as a result of the imposition of the tax, for the financial support of Greek Cypriot refugees.
Thus, a change was made to the provisions of the Central Agency for Equal Burden Sharing. Such obligation applies to every real estate transaction or commercial sale of shares in Cyprus. In addition to the above, according to the new amendment to the law, all transfers and sales of immovable property and/or shares in a company which is not listed on any recognized stock exchange and which directly or indirectly has immovable property in its possession, a tax of 0.4% is payable by the seller of the property or shareholder.