The number of new title deeds in Cyprus is growing. Although there is some delay - on average, about 4-7 years after the completion of projects.
Antonis Loizou, the head of Antonis Loizou & Associates, announced this several days ago.
According to him, there are many positive aspects, but this leads to an increase in the number of other problems associated with the transfer of ownership.
- Currently, no transfer fees are charged if VAT was applied or paid at the time of the purchase of the property.
- Transfer fees are reduced by 50% on all real estate purchases if no VAT has been paid.
Commissions paid on the transfer of ownership to the family company are refundable within five years, if the company still owns the property and there has been no change in the shareholder structure.
When transferring real estate from a family company to its shareholders and transferring it by donation between spouses, children or third-degree relatives, the renewal fee is calculated based on the assessed value of the property as of January 1, 2013.
In other words, the following rates apply when re-registering property:
- from spouse to spouse - 0.1%,
- from parent to child - 0%,
- between third-degree relatives - 0.1%,
- between trustees - 50 euros,
The transfer of immovable property by one company to another company for reorganization is exempt from transfer fees.
In this case, the valuation date is based on the date of purchase and sale of the property.
So, if someone bought a property in 2002 and re-register it today, the transfer fee will be based on the market value at the date of purchase, which is 2002.
The law provides that the land registry must establish the value of the property on the relevant date (sale) based on the market value on that date. However, about 20% of the total is contested if the relevant supervisory authority can establish from its records that the market value of the property at the time was significantly different.
The main option for determining market value is, among other things, the comparable method. Thus, if you bought an apartment for €100,000, and the land registry has records of other nearby sales of similar properties for €120,000, it will charge you a transfer fee at the rate of €120,000.
Unfortunately, a large percentage of locals undervalue buying and selling properties in order to save on capital gains (from the seller's side) and transfer fees (from the buyer’s side).
At the same time, you can appeal to the Supreme Court in support of your claim, using the report of a private appraiser, in case of disagreement with the assessment of the Office. This must be done within 40 days from the date on which the final assessment was made.
If the contract is deposited with the Land Registry, then the date of sale recorded in the contract is fixed. If the contract is not deposited, the buyer must provide his contract and receipt of the advance payment so that the Office can set a date for the sale.
“After hard litigation, only 20% of titles are issued for obtaining documents. This is because every cent now counts. Many people are not ready to pay about 15-30 thousand euros as a transfer fee, Loizou said.
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